Skills, Not Degrees, Shape the Jobs of Tomorrow

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Europe is shifting its focus to lifelong learning, vocational education and workforce skills as technology reshapes the labour market — with Cyprus facing both opportunities and capacity challenges.

The future of work will depend less on academic qualifications alone and more on the ability to continuously develop new skills, according to experts speaking at an international conference held as part of Cyprus' EU Council Presidency.

Digital transformation, artificial intelligence, the green transition and rapid technological change are reshaping labour markets across Europe, placing greater emphasis on vocational education, lifelong learning and skills development.

Speaking to Politis, European Training Foundation (ETF) Director Pilvi Torsti said education systems must become more closely aligned with labour market needs.

"Many people already hold university degrees, but increasingly need shorter, targeted training programmes to meet the evolving demands of the labour market," she said, highlighting the growing importance of reskilling, upskilling, adult education and micro-credentials.

Torsti noted that while Cyprus compares favourably with many European countries in terms of unemployment, it must continue adapting its education system to support the green and digital transitions.

Digital skills alone are not enough

Dr Venetia Pappa, Assistant Professor of Journalism and Digital Media at the Cyprus University of Technology (CUT), said technological knowledge must be combined with critical thinking, adaptability and digital literacy.

She warned that despite young people becoming increasingly proficient with digital tools and AI applications, many still face unemployment, underemployment and insecure work.

"The challenge is not simply digital access," she said. "The challenge is turning digital skills into meaningful opportunities."

Experts also stressed the growing importance of transferable skills such as communication, problem-solving and adaptability, arguing these remain valuable even as technical knowledge rapidly becomes outdated.

Vocational education gains ground

ETF Human Capital Development Policy Unit Head George Zissimos said vocational schools have evolved significantly over the past three decades, becoming "skills ecosystems" that bring together businesses, universities, local communities, researchers and government bodies.

Anastasia Pouliou of CEDEFOP added that vocational excellence increasingly depends on innovation, personalised learning, virtual reality tools and close collaboration with employers.

The conference also highlighted apprenticeship models and lifelong learning as key tools for adapting to changing labour markets.

Montenegro offers a case study

Montenegro presented its education reform strategy through 2035, focusing on practical learning, upgraded facilities and stronger links between schools and employers.

Deputy Director General Marko Vukasinovic said vocational schools are attracting growing interest, while one of the country's best-known academic schools failed to fill all available places during the first round of admissions for the first time.

He attributed the shift to more relevant curricula, improved facilities and better employment prospects.

Cyprus faces capacity challenges

The European debate mirrors developments already underway in Cyprus, where demand for technical education has risen sharply in recent years.

According to the Director of Secondary Technical and Vocational Education, Elias Markatzis, technical schools have become increasingly popular, reflecting stronger recognition of skilled trades and continued labour shortages in sectors such as electrical and plumbing work.

However, the surge in applications has also exposed capacity constraints.

"We are now forced to turn away students — often excellent students — simply because there are not enough places available," he said.

The conference concluded that the future of education lies not in choosing between academic and vocational pathways, but in building flexible systems that allow people to acquire new skills throughout their careers while responding more effectively to the changing needs of the economy.