New EMN-OECD joint study explores how to unlock third-country nationals’ skills potential in the labour market

The EMN-OECD* joint study “Fostering sustainable labour market integration of third-country nationals: skills matching policies and instruments” provides a comparative overview of how and why different groups of third-country nationals are affected by skills mismatch. The report examines also the factors driving these challenges and the measures used by EMN Member Countries to strengthen their opportunities for labour market integration. Drawing on national contributions from 25 EMN Member Countries and using OECD comparative analysis in measuring skills mismatch, this study highlights key barriers such as limited language proficiency and challenges with the recognition of foreign qualifications, among others. In Sweden, programmes often combine language learning, education and work experience.

Skills matching in focus

The EMN-OECD joint study shows that third-country nationals are more likely than native population to work in jobs that do not make full use of their educational qualifications. In addition to data from EMN Member Countries, the study draws on comparative OECD data to analyse skills matching. Skills matching refers to the extent to which an individual’s skills and qualifications match the requirements of their job. The study covers labour migrants from third countries, third-country nationals arriving via family reunification, beneficiaries of international or temporary protection. Applicants for international protection are not included in the scope of the study.

Language and recognition of qualifications are key challenges

Third-country nationals experience higher rates of overeducation than native population. In almost all countries included in the OECD comparison, highly educated non-EU-born individuals have the highest rates of overeducation. The disparities tend to decline with longer periods of residence in the host country but persist even after longer durations of stay.

Limited proficiency in the host-country language is the most commonly reported driver of skills mismatch. Challenges with the recognition of foreign qualifications are another major factor, particularly in regulated professions. Other factors highlighted include gender, age, limited knowledge of the labour market and discrimination.

The study also shows that beneficiaries of international protection can face particular barriers. A lack of documentation from countries of origin can make it difficult to provide evidence of education, qualifications and previous employment records.

Measures in EMN Member Countries

Almost all participating EMN Member Countries have national policies and instruments to counter skills mismatch and/or promote skills matching for third-country nationals. The study identifies a total of 129 policies and selected instruments. These include the recognition of qualifications and prior learning, language training, upskilling and reskilling, and the provision of labour market information and career orientation.

Several concrete examples show how countries combine different types of support.

• In Austria, beneficiaries of international protection who are unable to provide the documentation required for recognition can have their qualifications established through alternative means, such as practical or theoretical examinations, sample tests, work samples or expert opinions. These provisions have also been extended to beneficiaries of temporary protection.
• In Luxembourg, vocational training pilot projects for beneficiaries of international protection combine training for specific occupations with French language courses. After completing the training, participants are connected with employers, including through dedicated job days and individual guidance provided by the National Employment Agency.

The study also highlights the importance of employer involvement. A recurring finding is that training and integration pathways should be designed with employer input to ensure alignment with labour market needs, and that better coordination between employers and public employment services can contribute to improved skills matching.

Situation in Sweden

In Sweden, the study highlights, among other measures, a programme providing intensive on-the-job language training. Three-month work placements are accompanied by bilingual case workers who can communicate in participants’ native languages, as well as longer-term follow-up support. The programme is described in the study as having been positively evaluated.

The study also highlights Sweden’s use of education as a pathway towards long-term labour market integration. Alongside measures aimed at getting third-country nationals into employment quickly, Sweden has also invested in higher education for migrants.

At the same time, Sweden illustrates some of the challenges that can arise in regulated professions. The study uses foreign-trained nurses as an example. Nurses trained abroad must have their degrees assessed by the National Board of Health and Welfare (Socialstyrelsen) and may need to complete a complementary programme before practising. The study also highlights requirements concerning Swedish language proficiency and knowledge of medical terminology, local patient safety standards, and digital record systems.

The study also identifies unfamiliarity with local recruitment practices and the importance of informal networks as factors that can make skills matching more difficult in Sweden. People without access to such networks may have greater difficulty obtaining information about jobs that are not openly advertised.

Integrated measures highlighted as good practice

Despite the large number of measures in place, several challenges persist across EMN Member Countries. The study points in particular to insufficient advanced language support, complex qualification recognition processes and employer-side barriers, including discrimination and limited awareness of hiring regulations.

Good practices identified in the study include combining language and vocational training, mentoring, employer partnerships and tailored sectoral pathways. The study also emphasises the validation of prior learning and the need to simplify and accelerate the recognition of qualifications. An overarching lesson is the need for better coordination of support through integrated, multi-actor approaches that connect language, qualification recognition and employment support.

*OECD stands for the Organisation for Economic Co-operation and Development.