Policy
Brussels confirms the problem Taggl solves
In its State of the Union 2026 report, the European Commission names skills shortages as a structural barrier to the European economy. What the report actually says, what the Union of Skills and the Skills Guarantee do, and where policy ends and shop-floor knowledge loss begins.
Every year the European Commission publishes a State of the Union report: an account of what it did over the past year and what still stands in the way. The edition published on 11 September 2026 puts something in writing that most manufacturers usually only say quietly among themselves: skills shortages are holding businesses back.
That is not a marketing claim. It is how the European Union describes one of the structural barriers to its own competitiveness, listed alongside fragmented markets, high energy costs and regulatory complexity. For a company built to stop the loss of tribal knowledge in production environments, that is worth pausing on.
What the report actually says
The report State of the Union 2026, From promise to progress was published on 11 September 2026. Its first chapter, on a competitive and prosperous Union, contains the passage that matters here:
Fragmented markets, structurally high energy costs, skills shortages and unnecessary regulatory complexity continue to hold businesses back and limit Europe’s growth. Addressing these barriers is at the centre of this Commission’s agenda.
A few chapters later, in the part on Europe’s social model, the same report states the reverse: “Above all, Europe’s greatest strength is its people – their skills, creativity and capacity to innovate.” Shortage on one side, people on the other. Both sentences describe the same asset.
The numbers behind the diagnosis
Behind that diagnosis sits a policy apparatus. The Union of Skills, the European skills strategy launched in March 2025, brings existing programmes under one banner. According to the report, more than ten million people have benefited from upskilling and reskilling since 2020, including 3.9 million in 2025 alone.
The European skills agenda in numbers
10M+
Participants since 2020
People who have benefited from upskilling and reskilling since 2020 (European Commission, State of the Union 2026).
3.9M
In 2025 alone
Participants in a single year, an indication of the scale the policy now operates at.
60%
2030 target
Share of all adults participating in training every year, more than double where most member states stand today.
That 60% target sits next to two other 2030 goals in the report: 78% employment for people aged 20 to 64, and 15 million fewer people at risk of poverty or social exclusion. These are not small numbers. They reflect a single recognition: Europe does not have enough people with the right knowledge in the right place.
The Skills Guarantee, translated into practice
The newest instrument is the Skills Guarantee. The report describes it like this:
The Skills Guarantee will help workers move from sectors undergoing profound transformation into growing and strategic sectors that face labour shortages. It means more investment in upskilling and reskilling and helping companies adapt jobs as they adopt AI.
That is not an abstraction. In July 2026 the first six pilots started, with a combined budget of €14.5 million, supporting almost a thousand automotive workers at risk of unemployment through partners in ten member states. A concrete example of the route from a declining sector into a growing one.
Read that last clause again: helping companies adapt jobs as they adopt AI. That is exactly where European policy meets daily practice. A language model does not know your machines, and what AI does not know about your production environment determines whether AI support on the floor is useful or dangerous. The obligations that come with it are covered in the article on the EU AI Act for manufacturers.
What a skills shortage looks like on the shop floor
Policy language rarely translates cleanly into what actually happens on a production floor. Here is the translation.
A skills shortage is not an abstract statistic. It is the operator who has worked the same line for thirty years and knows, without needing to check a manual, that a specific machine drifts out of tolerance once the shop floor passes twenty degrees. It is the maintenance lead who can diagnose a fault by sound before the diagnostics panel even flags it. It is the quiet judgement calls nobody wrote down, because nobody asked them to, and because writing was never how the work got done.
None of that shows up in a wiki. On the shop floor it is called tribal knowledge: knowledge that lives in the group but is recorded nowhere. The people who hold it are not reluctant because they do not value it. They are reluctant because typing is not how they work, and documentation has never once made their day easier. Why that is so persistent, and what does work, is covered in the article on capturing knowledge on the shop floor.
The shortage sits exactly where knowledge is hardest to write down
The European agency for vocational education, Cedefop, maps which occupations are in shortage across the EU. In 2024 that was 22 vocational occupations, with the most widespread shortages in metal and manufacturing — welders, metal sheet workers — and in construction. Six out of seven shortage occupations in the EU sit in vocational and technical fields. Precisely the kind of work whose core is not in a manual, but in the hands and judgement of someone who has done it a thousand times.
Then there is the age profile. PwC calculates that 32 million people work in manufacturing in Europe and that 32% of them are between 50 and 64 years old, and therefore due to retire within the next ten to fifteen years. Tomorrow’s shortage is largely today’s experience walking out of the gate. How to organise that handover early enough is covered in the article on knowledge transfer before retirement.
Manufacturing in numbers
32M
Manufacturing employees
People working in the manufacturing industry in Europe (PwC).
32%
Aged 50 to 64
This group is expected to retire within the next ten to fifteen years (PwC).
22
Shortage occupations in the EU
Vocational occupations with EU-wide shortages in 2024, most widespread in metal and manufacturing (Cedefop).
Where policy meets practice
This is the gap between EU ambition and factory reality. Policymakers can fund reskilling programmes, set training targets and design a Skills Guarantee. All necessary, all genuinely useful. But none of it solves the moment a thirty-year employee retires with knowledge that was never captured anywhere but in their head.
What policy can and cannot do
The distinction matters, because it determines what you have to organise yourself.
Policy funds training
Subsidies, programmes and instruments like the Skills Guarantee bring new skills into an organisation and help people move from a declining sector into a growing one.
Policy sets direction and targets
A target such as 60% of adults in annual training forces member states and sectors into investments that would otherwise have been postponed.
Policy does not capture company-specific knowledge
No curriculum contains the quirks of your machine park, your exceptions and your customer agreements. That knowledge is yours, and it leaves with the person who holds it.
Policy does not keep captured knowledge current
What was written down once quietly goes out of date. Without preservation nobody trusts the system anymore, and the capture effort is lost after all.
That last point is why documentation projects so often fade out: not during capture, but afterwards. Why captured knowledge decays and how to prevent it is covered in the article on knowledge preservation on the shop floor. What it delivers once knowledge is searchable shows up fastest in onboarding new employees.
This is the piece missing from the policy conversation, and the piece Taggl exists to solve. Not another training programme, not another portal nobody logs into, but a way to capture what an experienced worker already knows, while they are doing the work, without asking them to become office employees. Voice, not typing. During the shift, not after it. In whatever language the operator speaks. What gets captured is not a form filled out under obligation. It is the same explanation a new colleague would get if they simply asked. Why we make that choice is set out in Taggl empowers people.
What you can do before the funding arrives
Waiting for a funding scheme is not a strategy, certainly not when the leaving date of your most experienced colleague is already known. Four steps are enough to start.
Starting without a large programme
Name the one to three people whose absence causes problems.
Pick one line, machine park or fault type, small enough for results within weeks.
Make capture coincide with the work: spoken, in the moment.
Assign who confirms that captured knowledge is correct before others rely on it.
Companies with these basics in place can also target European training funding far more precisely, because it becomes visible which knowledge exists and which is missing. The full picture of capture, preservation and transfer is in the overview article on knowledge retention in manufacturing.
The missing piece
The European Commission has, in its own words, confirmed the diagnosis. Skills shortages are real, they are structural, and they are costing European industry more than most companies openly admit. The reskilling programmes and EU-wide targets are a meaningful part of the answer.
But policy alone does not preserve thirty years of shop-floor judgement. That part still has to happen where the work does, one recorded shift at a time.
About the sources
The quotes in this article come from the written State of the Union 2026 report of 11 September 2026, not from the address delivered in Strasbourg on 16 September, for which no official verbatim transcript is published. The ten million and 3.9 million figures originate from the annual Pact for Skills survey, which has sat under the Union of Skills since 2025 and is presented as such in the report. The report contains no dedicated passage on manufacturing: the bridge to production environments and shop-floor knowledge is our editorial reading, not a claim by the European Commission.
Frequently asked questions
Want to know what this means for your own ageing shift? Our team is happy to think through knowledge capture on your shop floor.
What did the European Commission say about skills shortages in 2026?
In its State of the Union 2026 report, the European Commission names skills shortages as a structural barrier to the European economy, listed alongside fragmented markets, structurally high energy costs and unnecessary regulatory complexity. The report states that these barriers hold businesses back and limit Europe’s growth, and that addressing them is at the centre of this Commission’s agenda.
What is the Skills Guarantee?
The Skills Guarantee is a European instrument that helps workers move from sectors undergoing profound transformation into growing, strategic sectors facing labour shortages. It combines investment in upskilling and reskilling with support for companies adapting jobs as they adopt AI. The first six pilots, launched in July 2026, share a budget of €14.5 million and support almost a thousand automotive-sector workers.
What is the Union of Skills?
The Union of Skills is the European skills strategy launched in March 2025 that brings existing programmes together. According to the State of the Union 2026 report, more than ten million people have taken part in upskilling and reskilling since 2020, including 3.9 million in 2025 alone. The 2030 target is for 60% of all adults to participate in training every year.
Does European reskilling policy solve knowledge loss at retirement?
Not the part that lives in people’s heads. Training programmes bring new skills into a company, but they do not capture what an operator with thirty years of experience knows about your machines, your exceptions and your customers. That knowledge is company-specific and appears in no curriculum. Policy and knowledge capture are complementary: one does not replace the other.
What can a manufacturer do about this now?
Start with the vulnerable points rather than the funding: which one to three people cause problems when they are away. Capture their knowledge by voice during the work instead of in a documentation project afterwards, assign someone to confirm that captured knowledge is correct, and measure usage rather than volume. Companies that have this in place can also target European training funding far more precisely.
Keep thirty years of craftsmanship inside the company
European policy funds training. It does not capture what your most experienced operator knows. Taggl lets craftspeople speak their knowledge during the work, in their own language, and turns it into searchable knowledge that stays when they leave.
Contact our team