This report provides new evidence of a broken link between skills proficiency and skills use, revealing that many highly skilled workers have limited opportunities to deploy their talents. By linking skills use to wages, productivity, inequality and job satisfaction, the report demonstrates why effective skills use matters for both economic performance and worker wellbeing. 

In recent decades, skills policies across OECD countries have focused primarily on expanding the supply of skills. Governments have made substantial investments in education, training and lifelong learning, improving access and attainment for millions of adults. However, developing skills is only part of the story. Evidence shows that economic and social returns depend not only on what people know, but also on how effectively their skills are put to use at work.

The report takes a unique look at how skills use has evolved over the past decade, identifying where and for whom talent remains underutilised across countries, occupations and demographic groups. This analysis provides insights into the broader social and economic impact of skills mismatches, calling for policy changes to bridge the gap between skills proficiency and skills use. 

Overall, the findings of this report indicate that expanding the pool of highly skilled workers is necessary but not sufficient for productivity growth. Policy efforts should encourage firm-level innovation and job redesign to make better use of existing skills. At the same time, governments should increase efforts in strengthening labour market institutions and career guidance systems to facilitate better skill matching.