Global Skills Taxonomy Adoption Toolkit 2025

2 A roadmap for action Adoption roadmap for businesses, gover nments and the education industry Phase 1 of adopting a skills taxonomy begins with identifying strategic priorities and address- ing critical talent challenges that a skills-based approach can solve. For businesses, challenges could range from skill mismatches, talent short- ages, productivity challenges, retention issues, lack of attractiveness in certain roles and indus- try, and innovation promotion. A skills-based approach helps optimize talent management by forecasting future skills needs and industry trends, enabling proactive, data-informed deci- sions. Businesses can close talent gaps through skills-first hiring and targeted upskilling and re- skilling initiatives. This approach not only ad- dresses immediate needs but also strengthens the organization’s competitive edge by ensuring a workforce prepared for emerging demands. For governments, key issues include skills gaps that limit economic growth, mismatches bet- ween educational outcomes and market needs, job placement difficulties, workforce readiness, and disparities in economic and educational at-tainment. Tackling these challenges promotes a more adaptable, inclusive and resilient economy. Governments can start by impleme nting skills- based policies to close labour-readiness gaps and enhance competitiveness. Initiatives might include assessing future skills needs, pro- moting upskilling programmes and improving job-matching services to align job seekers with high-demand roles. A skills-focused approach also enables more effective reduction of eco- nomic and social disparities by a ligning edu- cation and workfor ce development with actual market demands. For the education industry, co mmon challen- ges include misalignment between educational programmes and rapidly changing industry r equirements, low learner engagement, and inadequate skill verification. Adopting a skills taxonomy can help address these issues by pr oviding a framework that connects educa- tional content directly to in-demand skills. By partnering with employers to align curricula with market demands, educational institutions can ensure that students acquire the specific competencies needed in the workforce . Addi- tionally, skills verification become s more robust and transparent, giving students and employers gr eater confidence in the practical value of their education (see Figure 2 for common use cases of the Global Skills Taxonomy).Phase 2 focuses on assessing and identifying the skills needed to meet these strategic prio- rities. Establishing governance mechanisms in Phase 3 is essential for sustaining a skills-first culture and ensuring governance of skills in the organization or across government agencies. The following sections offer actionable insights and case studies to support each stage of an organization’s skills taxonomy jour ney. Global Skills Taxonomy Adoption Toolkit 13