SkiLMeeT > News > SkiLMeeT policy brief: Occupational mobility is key to Europe’s response to labour and skills shortages

SkiLMeeT policy brief: Occupational mobility is key to Europe’s response to labour and skills shortages

Leiden, Netherlands, 20 December 2025 – Job-to-job moves across occupations can help Europe’s economy respond more effectively to skills shortages by directing workers to where they are most needed, a SkiLMeeT policy brief says, calling for targeted labour market policies to make such transitions easier and fairer.

The brief “The Role of Job-to-Job Transitions, Wages and Quality of Work in Structural Change” argues that encouraging workers to move into new occupations can help reduce mismatches between labour supply and demand, a growing challenge as Europe’s economy adapts to digitalisation and the green transition.

“Europe already has substantial job-to-job mobility,” said Ronald Bachmann, co-author of the policy brief and researcher at RWI. “The task for policymakers is to steer these moves towards occupations with good prospects, rather than leaving them to chance.”

Drawing on analysis of European labour markets between 2011 and 2018, the brief shows that occupational mobility is significant but uneven across the continent. On average, around 6% of workers change jobs each year, while about 3% switch occupations.

There are, however, significant differences between countries. In Sweden, job changes are relatively common, while in Italy workers move less often, reflecting more limited opportunities and higher barriers to changing roles. Women, older workers and low-skilled workers are also less likely to change occupations and are more exposed to involuntary moves, particularly during periods of economic turbulence.

Occupational mobility is strongly linked to pay outcomes. Workers who change occupations experience larger wage movements than those who remain in the same role. Voluntary moves are usually associated with pay gains, while involuntary changes more often result in losses, particularly for women and low-skilled workers.

“Policy should minimise forced moves into poor-quality jobs and maximise chosen moves into better ones,” said Ludivine Martin, co-author of the study and researcher at LISER. “That means acting on both wages and working conditions in shortage occupations.”

The authors emphasise that job mobility alone will not ease skills shortages if destination jobs remain unattractive. Evidence shows that workers are less likely to move into roles with poor conditions, while occupations offering better job security, work–life balance and overall satisfaction are more successful at attracting and retaining staff.

To make job-to-job mobility an effective adjustment tool, the authors say governments need to lower barriers to moving and reduce the risks involved. That includes improving access to clear information on job tasks, skills requirements, pay and working conditions, helping workers identify realistic pathways into occupations with stronger prospects. Proper implementation of the EU Pay Directive would also support mobility by increasing pay transparency and steering workers towards employers with fairer wage structures. Training provided by firms and public bodies is another key factor, particularly for older and low-skilled workers, enabling them to move into higher-quality jobs rather than being forced into weaker ones.

“If mobility is to support the green and digital transitions, workers must see that moving pays off – in skills, security and prospects, not just in rhetoric,” argues Uyen Nguyen-Thi, co-author of the study and researcher at LISER.

The brief also points to the role of cross-border labour mobility. While EU citizens have the right to work freely in other member states, skills shortages persist partly because qualifications are not consistently recognised across borders. Strengthening the recognition of qualifications and putting greater emphasis on skills-based matching – rather than relying on formal certificates alone – could help reduce regional imbalances and ease shortages in the regions and occupations most affected.

See the brief here

Bachmann, Ronald, Laetitia Hauret, Ludivine Martin, and Uyen Nguyen-Thi (2025). The Role of Job-to-Job Transitions, Wages and Quality of Work in Structural Change. SkiLMeeT Policy Brief No.1. Grant Agreement No. 101132581.

BACK