The Deputy Director-General of the International Labour Organisation, Celeste Drake, has stressed the urgent need for a human-centred skilling agenda to navigate these disruptions and ensure economic competitiveness.
He made this observation at the third edition of the European Employment and Social Rights Forum, as labour and skills shortages remain a significant challenge across the European Union, with rapid digital transformation reshaping the job market.
The European Commission’s forum brought together key policymakers, business leaders, academics, and civil society groups to address pressing labour market concerns.
According to the ILO’s latest World Employment and Social Outlook: Trends 2025 report, persistent labour shortages in Europe are being driven by a skills mismatch, particularly in high-demand sectors such as science, technology, engineering, mathematics, information and communication technology, and healthcare.
Drake highlighted that while labour market trends appear to be stabilising, external factors such as geopolitical tensions, trade shifts, and climate change will continue to exert pressure on employment.
Artificial intelligence and digital transformation are already reshaping industries, with ILO estimates indicating that over two per cent of global jobs and 5.1 per cent of jobs in high-income countries are at risk of displacement due to automation.
However, she emphasised that new job opportunities are emerging, with many yet to be defined.
“There will be jobs available five years from now, which we don’t have a description for today,” Drake told the audience in Brussels and online.
She underscored the need for a proactive reskilling and upskilling strategy to help workers transition into new roles and bridge the digital divide.
The global competition for talent is intensifying, particularly in the EU. Drake called for countries to identify and address skills shortages through AI-powered tools and stronger policies that link skills development with the creation of decent jobs. Ensuring that social protection systems are robust and that public employment services are modernised is crucial to supporting workers through these transitions.
“Young people, in particular, must be equipped with the ability to learn how to learn,” Drake emphasised, highlighting the importance of lifelong learning and career guidance.
As technological advancements continue to transform economies, meaningful dialogue among governments, employers, and workers will be essential in shaping labour market policies.
Drake concluded that investing in a human-centred reskilling agenda is key to ensuring a sustainable, competitive workforce in Europe’s rapidly evolving job landscape.
