When Jobs Change: Skills Mismatch and the Value of Training

ABSTRACT

This article examines the impact of rapidly changing skill requirements on skills mismatch in Europe and the role of training in mitigating adverse effects. Using data on approximately 70 million online job vacancies, we estimate the extent to which occupational skill requirements changed between 2019 and 2023 across European Union (EU) countries plus Norway and the United Kingdom. STEM‐related occupations saw the greatest degree of change, whereas lower skilled manual jobs saw the least. By linking job vacancies to survey data, we show that employees in fast‐changing jobs are more likely to experience skills deficits. Training plays a role in mitigating these negative effects, and the type and intensity of training matters. Training seminars/workshops are most effective. Formal training courses and on‐the‐job training are less effective when used in isolation but can mitigate skills deficits when combined with other types of training. Our constructed dataset of occupational skill change is published as an accompanying data appendix. This should be of use for future research across a range of areas in labour economics and industrial relations.