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 12 skills challenges for Portugal. The challenges are described under each of the main pillars of the OECD Skills Strategy and are formulated as outcomes. The first nine challenges refer to specific outcomes across the three pillars of developing, activating and using skills. The next three challenges refer to the ‘enabling’ conditions that strengthen the overall skills system. Success in tackling these skills challenges will boost performance across the whole skills system.

All of the challenges identified are strongly interlinked, and their connections with each other are identified throughout the report at the end of each challenge. Failure to look beyond policy silos will have implications for specific groups in Portugal, such as youth, as well as for the economy and society’s ability to recover after the economic crisis and build a solid foundation for future prosperity.