Investing in skills pays off: the economic and social cost of low-skilled adults in the EU

Long-term projections show that, on average, labour demand for the low-skilled is expected to decrease while labour demand for medium and high qualification levels will increase. Unemployment, social exclusion and disengagement from the labour market by the low-skilled can permanently lower potential growth and harm social cohesion. The (re)integration of low-skilled workers into labour markets and their upskilling is a key policy challenge for European economies. This study from the European Centre for the Development of Vocational Training (Cedefop) seeks to provide a comprehensive and robust evidence base in relation to low-skilled adults in the European Union. It analyses trends in low skills among adults as well as characteristics, determinants and risks of being low skilled. The study provides an estimation of the individual and social value in monetary terms of a faster increase in the general level of skills in Member States compared to the current trend. Providing a thorough evidence-based assessment of the consequences associated with being low-skilled, the benefits of updating the skills of individuals through adult and lifelong learning can be identified and appreciated, supporting the rationale for public intervention in this area.

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