Part of a series of country projects within the OECD programme of work on building effective national and local skills strategies. Skills have become the key driver of individual well-being and economic success in the 21st century. Without proper investment in skills, people languish on the margins of society, technological progress does not translate into growth, and countries can no longer compete in increasingly knowledge-based economies. This diagnostic report identifies 14 skills challenges for Austria which were distilled from two interactive diagnostic workshops held with a range of stakeholders. It marshals a wide array of relevant OECD evidence, including Austria’s results from the Survey of Adults Skills (PIAAC), to shed further light on these challenges. Finally, it offers some concrete examples of how other countries are tackling similar skills challenges.