The free movement of workers dates back to the 1960’s when they key aim was to improve EU citizen’s living and working conditions. Arguably in its almost 70’s of existence employers and national economies have gainedsignificantly. Positive impacts include falling unemployment rates, increased remittances, and higher labour productivity levels in destination countries. Access to larger talent pools have allowed businesses and employers to close skills gaps, strengthen workforce resilience, and expand to other markets.
Despite these advantages, skill shortages and job vacancy rates are increasing across sectors. A contributing factor is the lack of mutual recognition of qualifications across borders, which can delay recruitment processes, create administrative burden, and limit employers’ access to available skills. While article 53(1) of the TEFU enables mutual recognition of diplomas and other qualifications required in each Member State, progress for non-healthcare workers is lagging due to limited national-level harmonisation at national level. The limited recognition of professional qualifications is named by the European Commission as one of the ten terrible barriers within the Single Market.
Paradoxically, qualification harmonisation has progressed faster for workers in the healthcare delivery sector. Even if the overall proportion of EU movers are young and male, the typical mobile healthcare professional is awomen working in a caring profession - highlighting the gendered dimensions of labour mobility across sectors.
About 40% of the EU’s 10.1 million mobile workers are educated to third level, yet overqualification is a persistent issue, particularly for women, who are disproportionately represented in lower-skilled roles. At the same time, widespread shortages of ICT specialists and engineers constrain business growth and long-term investment. In BRIGHTskills, severe skills shortages are also observed in regulation and quality management, data analytics and digital governance and in AI, digital and environmental sustainability, reinforcing evidence that labour market mismatches are affecting strategic sectors. In 2023, 68% of medium-sized companies reported skills shortages as a serious issue and 77% of companies in 2024 identified them as a barrier to long-term investment, with direct implications for innovation and competitiveness.
To address the poor integration and underutilisation of talent, improve the visibility of workers skills and enhance employer’s understanding of qualifications and skills obtained in other Member States the European Commission is proposing the Skills Portability Initiative. Its objective is to enable skilled workers to move more easily throughout Europe, while increasing transparency and simplifying recognition procedures.
To achieve this the initiative will:
The mutual recognition of qualifications and worker mobility is crucial for employers’ access to larger and more diverse talent pools. Broader access to the labour market, faster and more predictable recognition procedures, and more resilient transitions are necessary to reduce recruitment friction, address persistent labour shortages, and support workers in moving smoothly into new roles.
Influence potential legislative proposals setting common rules simplifying qualification recognition and improving qualification transparency. Register your views by the 27th of February to ensure that the Skills Portability Initiative reflects your business realities and workforce needs.
For further information see about the initiative read here
