As the Eurozone flounders in the ongoing financial crisis, it has entered a vicious unemployment cycle that is further weakening the economy and subsequently causing further job cuts.

Unemployment in the 17-nation euro zone climbed to 11.9 percent in January from 11.8 percent the previous month, according to Eurostat, the statistical office of the European Union. Whilst there is a growing concern about high unemployment levels, the real challenge we are facing today is the widening skill gap between the needs of new emerging industries and markets and the available talent.

EU commissioner Neelie Kroes estimates that there will be 900,000 unfilled ICT job vacancies by 2015 in the EU region alone. This raises serious questions about what the future holds for the EU and the task that lies ahead to bridge the skills gap and increase employment levels. In order to remain competitive, governments and industries must work together to ensure young job seekers are equipped with the skills they need to capitalise on this massive opportunity.

As a starting point, the government must address the following questions:

1) What are the policies and capacities that need to be developed to meet industry needs?

2) What is the role of the government and technology in skilling, re-skilling and cross-skilling the future workforce?

3) And, what action does the industry need to take to address the skills gap?

We all know that the realm of technology is fast changing and it has already revolutionised the world of work. Today’s employer often demands a niche skill-set that is not always prioritised by traditional education systems. There is a real demand for initiatives and programmes to ‘re-skill’ the unemployed and help them adapt to the changing enterprise. The success of Germany’s dual apprenticeship system is testament to this approach: a balanced curriculum of structured training within a company, accompanied by part-time classroom tuition in vocational and general subjects, should serve as a fantastic success story.

However, in the short term to address immediate needs businesses should explore the free movement of skilled workforce across borders. A recent survey that we conducted of global leaders at the World Economic Forum (Davos) 2013 revealed that 78% felt that the EU skills gap pointed towards cross border opportunities when it comes to sourcing talent.

Despite the recent economic slowdown and inevitable tightening of the purse strings, it is important that the EU thinks about the long term repercussions of the skills shortage. Without a skilled workforce, Europe risks lagging behind when it comes to the innovation and entrepreneurship which lie at the heart of economic recovery.

Now is the time for governments to focus investments towards education programmes in consultation with the industry to create shared value for both the economy and businesses. Recently, we partnered with UMass to launch a fellowship programme for 120 US school teachers with the aim of fostering excellence in science education among students from disadvantaged areas of Boston and New York. It is coordinated and sustained efforts like this from the government and the industry alike that will pave the way for increased employment levels and ultimately economic recovery.

By working together, businesses, governments, campaigners and teachers can ensure that adequate skills, policies and capacities are developed to meet the labor force needs of the enterprise of tomorrow.

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