Comprehensive Overview of Leading Skills Taxonomies

‍1. Defining Skills Taxonomies and Their Significance

A skills taxonomy represents a comprehensive and structured framework designed to classify and organise the specific skills possessed by individuals within an organisation or across a broader labour market ¹. Much like a dictionary organises words, a skills taxonomy breaks down skill sets into logical categories and subcategories, effectively mapping out the relationships between different skills ¹. This structured system serves to define, categorise, and ultimately standardise the skills required to achieve organisational objectives ². Typically, a skills taxonomy includes clear definitions for each skill and may also specify various levels of proficiency, ranging from beginner to expert ². This detailed classification provides a unified language that facilitates the assessment and development of talent within an organisation ².

In the modern labour market, skills taxonomies have become indispensable tools for a multitude of reasons. They are fundamental for structuring an organisation's diverse skills requirements, thereby making it significantly easier for human resources departments to identify, assess, and track talent in an efficient manner ². Furthermore, skills taxonomies support the growing trend of skills-based approaches to hiring. By focusing on the specific capabilities of candidates, organisations can broaden their talent pool, moving beyond traditional reliance on job titles and academic degrees to emphasise relevant competencies ². These frameworks also provide a crucial roadmap for employee upskilling and reskilling initiatives. With a clear understanding of the skills required for various roles and future needs, learning and development programs can be strategically designed to close existing skill gaps, optimise employee development, and foster a culture of continuous learning aligned with evolving business demands ².

In an increasingly dynamic environment, skills taxonomies enhance workforce agility, enabling organisations to pivot more effectively in response to market changes or the implementation of new business strategies ². The rapid pace of digital transformation and technological advancements has further amplified the importance of skills taxonomies in understanding and adapting to changing workforce needs ⁵. By identifying the specific skills required for emerging roles and technologies, organisations can proactively address potential skill shortages. Moreover, these taxonomies facilitate better resource allocation by empowering organisations to match individuals with the right skills to the specific requirements of a given project or task ³. Finally, a well-defined skills taxonomy can improve internal mobility within an organisation by clearly mapping out the skills that employees need for potential advancement, allowing them to chart their career paths and take ownership of their professional growth ².

While the term skills taxonomy focuses on the hierarchical classification and organisation of skills, it is important to distinguish it from a skills ontology ². A skills taxonomy primarily concentrates on listing and organising skills within a hierarchical structure, often into categories and subcategories ². In contrast, a skills ontology goes a step further by mapping the relationships between different skills and their properties, as well as their connections to other entities such as roles, tasks, industries, and even qualifications ². This provides a deeper, more contextual understanding of the dependencies and interactions between various skills ². Therefore, while a taxonomy provides a foundational classification of skills for purposes like recruitment and learning programs, an ontology offers a more formal and detailed representation of skills and their intricate relationships ².

2. In-Depth Examination of Leading Skills Taxonomies

2.1 ESCO (European Skills, Competences, Qualifications and Occupations)

‍Management and Scope

ESCO, the European Skills, Competences, Qualifications and Occupations taxonomy, is managed and maintained by the European Commission ¹. Its expansive scope covers more than 13,500 skills and over 3,000 occupations relevant across the European Union ¹. A significant characteristic of ESCO is its multilingual nature, being available in more than 25 European languages, which facilitates communication and understanding across different countries within the EU 7. The taxonomy is structured around three interconnected pillars: Occupations, Skills & Competences, and Qualifications 7. The Occupations pillar of ESCO is built upon the International Standard Classification of Occupations (ISCO-08), providing a hierarchical structure for organising occupation concepts relevant to the European labour market 9. This ensures alignment with an internationally recognised standard for occupational classification. The Skills & Competences pillar distinguishes between skill/competence concepts and knowledge concepts by indicating the skill type, although it does not differentiate between skills and competences themselves 9. Each concept within this pillar includes a preferred term and various non-preferred terms in each of the ESCO languages, along with a descriptive explanation 9. Finally, the Qualifications pillar in ESCO originates from national qualifications databases of EU Member States that are included within National Qualifications Frameworks, which have been referenced to the European Qualifications Framework (EQF) 9. This linkage aims to enhance the transparency and comparability of qualifications across Europe. The pan-European reach and multilingual support of ESCO make it a distinctive instrument for fostering labour mobility and standardisation within the EU. Its foundation on ISCO provides a crucial international reference point, aiding in cross-country comparisons and understanding.

Usage

ESCO serves a multitude of purposes, primarily aimed at facilitating a more integrated and efficient European labour market. It is utilised for skills-based hiring and job-matching across Europe, enabling employers and job seekers to communicate effectively about skills, competences, and occupations in any chosen European language 1. By providing a common language for skills and occupations, ESCO supports the alignment between education and training systems and the needs of the labour market 1. The taxonomy is also employed for labour market analytics, research, and the big data analysis of skills trends across Europe, allowing for a better understanding of evolving skill demands 1. Career guidance services benefit significantly from ESCO, as it helps individuals to compare their skills against job vacancies and identify any existing skill gaps, as well as recommending suitable training opportunities 7. Education and training institutions leverage ESCO in the development and assessment of their curricula, ensuring that their programs are aligned with the skills required by the labour market 7. Furthermore, employment services can use ESCO to exchange relevant labour market information, such as CVs and job vacancies, across borders in a meaningful and interoperable way 7. The diverse applications of ESCO highlight its value for a wide array of stakeholders in both the labour market and the education sectors, ultimately contributing to a more transparent and interconnected European employment landscape.

Relevance to Australia

Despite its primary focus on the European Union, ESCO has found relevance and application in other parts of the world, including Australia. Researchers within CSIRO's Data61, the digital research arm of Australia's national science agency, utilise the ESCO skills framework to support rapid upskilling and reskilling initiatives needed for Australian businesses and workers to engage with emerging technologies 14. They leverage ESCO for machine learning activities aimed at identifying skills trends from job vacancies and evaluating the currency of vocational education and training courses 14. Moreover, the Australian government, in its efforts to develop a National Skills Taxonomy (NST), considers compatibility with global standards such as ESCO and O*NET as an essential aspect 16. This indicates that ESCO serves as a valuable international benchmark and tool for skills analysis even outside the European context, demonstrating its broader global relevance in the field of skills classification.

2.2 O*NET (Occupational Information Network)‍

Management and Scope

The Occupational Information Network, commonly known as ONET, is the primary source of occupational information in the United States and is managed by the U.S. Department of Labor 1. This comprehensive database covers over 1,000 occupations, providing detailed classifications across a wide range of factors, including skills, knowledge, abilities, tasks, work activities, and work context 1. ONET's structure is based on the Standard Occupational Classification (SOC) system, a federal statistical standard used by federal agencies to classify workers into occupational categories 19. The framework employs a hierarchical Content Model, which begins with six broad domains describing the day-to-day aspects of a job and the qualifications and interests of the typical worker, and expands to include nearly 277 specific descriptors 17. To ensure its accuracy and relevance, the ONET database is continually updated through ongoing surveys of workers in each occupation, supplemented in some cases by input from occupation experts 17. This commitment to regular updates allows ONET to reflect the evolving nature of work in the U.S. economy. The detailed nature of its descriptors and the consistent updates make O*NET a highly comprehensive and reliable resource for occupational information within the United States. Its alignment with the SOC system further ensures its seamless integration with other labour market data collected and utilised in the U.S.

Usage

ONET is extensively used across various sectors in the United States for a wide array of applications. Its primary uses include job classification and career planning, where its detailed occupational profiles help individuals understand the requirements of different roles and make informed career decisions 1. The network also supports workforce analytics and research, providing valuable data on occupational characteristics and their impact on various outcomes 1. ONET offers a suite of career exploration tools specifically designed for different user groups, including counselors who connect people to appropriate occupations, students discovering potential career paths, job seekers learning about necessary skills and education, and veterans transitioning to civilian careers 17. Businesses also leverage ONET for practical purposes such as writing comprehensive job descriptions that clearly define required skills and for broader human resource planning activities 22. The platform's interactive web-based tool, ONET OnLine, provides easy access to this vast database, offering a range of information from broad overviews to in-depth details on specific occupations 17. The widespread adoption and diverse applications of O*NET underscore its significance as a central resource for facilitating informed decisions related to careers and workforce development throughout the United States.

Applicability to Australia

While ONET is primarily focused on the U.S. labour market, its influence extends to other countries, including Australia. The Australian Skills Classification (ASC), developed by the National Skills Commission in Australia, was initially based on data from ONET 23. This indicates that the structure and content of ONET were seen as a valuable starting point for understanding and classifying skills in the Australian context. However, Australian research has suggested that directly applying ONET in Australia without further local validation may not be appropriate due to observed differences in the labour markets and skill requirements between the two countries 25. Despite this, the Australian government, in its ongoing development of a National Skills Taxonomy (NST), aims for compatibility with global standards, including ONET, recognising its importance as a widely used international framework 16. This suggests that while direct adoption may not be feasible, the methodologies and structure of ONET provide valuable lessons and a reference point for the development of Australia's own national skills classification system.

2.3 Skills Framework for the Information Age (SFIA)

‍Management and Scope

The Skills Framework for the Information Age (SFIA) is a globally recognised framework specifically focused on the skills and competencies required by professionals working in the information and communication technology (ICT) and digital sectors 1. It is managed by the SFIA Foundation, a UK-based not-for-profit organisation 1. SFIA is structured around seven levels of responsibility, which represent a clear progression in career development from entry-level (Follow) to the highest level (Set strategy, inspire, mobilise) 1. The framework outlines detailed descriptions for more than 120 specific professional skills that are relevant across various IT and digital disciplines, with each skill being further broken down across the seven levels of responsibility to indicate how it is practiced at different stages of a career 26. Additionally, SFIA describes five key generic attributes – autonomy, influence, complexity, business skills, and knowledge – which are applicable at each of the seven levels of responsibility, providing a holistic view of professional competence 29. To ensure its continued relevance in the rapidly evolving technology landscape, SFIA is updated approximately every three years to reflect advances in technology and changes in industry needs 31. This specialisation in IT and digital skills, combined with its emphasis on responsibility levels and generic attributes, makes SFIA a robust and adaptable framework for managing talent within the technology sector.

Usage

SFIA is widely utilised by governments, enterprises, and IT professionals for various purposes related to digital skills competency mapping 1. It plays a crucial role in supporting skills-based recruitment processes within the IT sector, enabling organisations to clearly define the required levels of responsibility and specific skills needed for different roles 26. The framework is also extensively used in talent management, helping organisations to identify existing employee skill sets and gaps, develop targeted training and development plans, and enhance performance management processes 26. Furthermore, SFIA facilitates the development of clear talent mobility pathways and career progression frameworks within IT departments and organisations 26. By providing a common language for describing IT roles and the professional skills required, SFIA ensures consistency across organisations and even globally, improving communication and collaboration among IT professionals 27. The framework's ability to standardise role definitions fosters clear expectations, objective hiring practices, and cost savings through efficient resource allocation 31. The broad adoption of SFIA in the IT industry reflects its effectiveness in addressing the specific skills management challenges of this dynamic and critical sector.

Adoption in Australia

Australia has embraced the SFIA framework extensively, demonstrating its significance in the national approach to managing digital skills. The Australian Government has secured a whole-of-country SFIA license (SFIA-AU), which removes barriers to its use and promotes its adoption across various sectors 35. The Australian Public Service (APS) Digital Profession actively manages this license and uses SFIA as its core capability framework 40. This enables individuals, public sector organisations, and private sector entities within Australia to utilise SFIA free of charge for a wide range of applications, including commercial use with proper acknowledgment 40. The framework is employed for strategic workforce planning, recruitment and deployment of staff with the right digital and ICT skills, the development of career path frameworks, and comprehensive skills assessment initiatives 31. Furthermore, SFIA aligns with the Australian Digital Capability Framework (ADCF), indicating a coordinated national effort to define and develop digital skills within the workforce 42. The widespread adoption of SFIA in Australia underscores the nation's recognition of the critical importance of digital capabilities and the value of a standardised framework in developing and managing these essential skills across the economy.

2.4 Singapore Skills Framework (SSF)‍

Management and Scope

The Singapore Skills Framework (SSF) is a national initiative managed by Singapore’s SkillsFuture, a government-led movement promoting skills mastery and lifelong learning 1. Unlike some other taxonomies with a broader or singular focus, the SSF comprises a series of sector-specific skills frameworks, each tailored to the unique needs of various industries within Singapore 1. These frameworks provide comprehensive information relevant to each sector, including details on employment opportunities, typical career pathways, specific job roles, the existing and emerging skills required for those roles, and listings of relevant training programs 44. The SSF is closely integrated with Singapore's national credentialing system, the Workforce Skills Qualification (WSQ) system, which is used to train, develop, assess, and certify skills and competencies for the workforce 43. A key aspect of the SSF's development is its collaborative nature; it is co-created by a diverse range of stakeholders, including employers, industry associations, education institutions, trade unions, and various government agencies 43. This collaborative approach ensures that the frameworks are relevant and responsive to the actual needs of the different sectors in Singapore's economy. The sector-specific design and the strong involvement of industry and government partners are defining features of the Singapore Skills Framework, aiming to cultivate a highly skilled and adaptable workforce.

Usage

The Singapore Skills Framework plays a vital role in various aspects of workforce development and planning within the nation. It is extensively used in Singapore’s workforce planning initiatives, helping to identify current and future skill needs across different sectors 1. The frameworks also support national upskilling efforts by providing clear pathways for individuals to acquire new competencies and advance in their careers 1. Employers in Singapore utilise the SSF for skill mapping within their organisations, allowing them to understand the capabilities of their workforce and identify areas for development 1. The framework also aids in the design of progressive human resource practices that recognise and value the skills of employees, informing decisions related to skills investment and recruitment 1. For individuals, the SSF offers valuable career guidance, helping them to make informed choices about their career development and skills upgrading by providing insights into different sectors, job roles, and the required skills 43. Training providers in Singapore rely on the SSF to develop industry-relevant training programs that address the specific skill needs identified within each sector, ensuring that the training provided aligns with the demands of the labour market 43. Furthermore, the SSF is integrated into various national policies, such as the Progressive Wage Model and initiatives for Enterprise Human Capital Development, highlighting its central role in Singapore's economic and workforce strategies 43.

Comparison to Australian Approaches

The Australian government, in its development of a National Skills Taxonomy (NST), has taken note of the Singapore Skills Framework, particularly its level of detail and granularity 23. This suggests that the comprehensive nature of the SSF serves as a benchmark for Australia's own efforts in skills classification. The success of Singapore's model is attributed, in part, to its strong tripartite cooperation between the government, employers, and trade unions, an aspect that Australia might consider in further developing its approach to workforce planning and skills development 50. The SSF's categorisation of skills into Technical Skills and Competencies, which are occupation-specific, and Critical Core Skills, which are employability and transferable skills, presents another structural element that Australia could potentially incorporate into its NST 51. While Australia's initial Australian Skills Classification (ASC) took a broader approach, the development of the NST indicates a move towards a potentially more sector-focused or granular framework, drawing lessons from international examples like the SSF. The comparison highlights different strategies in creating national skills frameworks, with Singapore's emphasis on sector-specific needs and collaborative development offering valuable insights for Australia's ongoing efforts in this area.

2.5 Australian Skills Classification (ASC)‍

Management and Scope

The Australian Skills Classification (ASC) was developed and is managed by the National Skills Commission (NSC), which is now known as Jobs and Skills Australia (JSA) 1. This framework was designed to provide a common language for skills across occupations, sectors, and contexts within the Australian labour market 52. The ASC focuses on three primary categories of skills: Core Competencies, Specialist Tasks, and Technology Tools 1. Core Competencies encompass ten fundamental 'soft skills' or 'employability skills' that are considered essential across all job roles in Australia, such as teamwork and problem-solving 53. Specialist Tasks refer to the specific work activities performed on a daily basis that are associated with particular occupations, for example, preparing financial documents 53. Technology Tools include the software, hardware, and equipment used within different occupations 52. The ASC was developed to complement the Australia and New Zealand Standard Classification of Occupations (ANZSCO), providing a skills-based perspective to the existing occupation-based classification 54. To describe the required proficiency for each of the ten core competencies within a given occupation, the ASC employs a 10-point scale, with each point having a corresponding generic description 53. It is noteworthy that the initial release of the ASC was based on data from the American O*NET system 23. The Australian Skills Classification represented an important initial step for Australia in moving towards a skills-based understanding of its labour market, aiming to establish a standardised vocabulary for skills that could be universally understood.

Usage

The primary aim of the Australian Skills Classification was to align Australian job roles more effectively with training and workforce development initiatives 1. While developed with this purpose in mind, the ASC is currently available primarily for research purposes, allowing stakeholders to explore and understand the skills landscape of Australia 52. The classification facilitates a greater understanding and recognition of the specific skills required across various occupations, sectors, and contexts within the Australian economy 52. By grouping similar specialist tasks across related occupations into skills clusters, the ASC helps to identify transferable skills and potential career paths for workers 53. Furthermore, the data provided by the ASC has been utilised as an input for broader analyses of the Australian labour market, such as creating economy-wide maps of skills clusters used by employed and unemployed workers 62. The classification was intended to improve job matching by systematically linking the skills required in one occupation to those in another, thereby assisting workers in identifying common and transferable skills, potential skill gaps, and relevant training opportunities 61. It also aimed to provide a more detailed framework for identifying critical skills and potential labour market skills gaps, which could then inform the development of new training options by training sectors, industry, and governments 61.

Limitations and Transition to NST

Despite its potential, the Australian Skills Classification faced several limitations. One key challenge was its initial reliance on American ONET data, which may not have fully captured the nuances of the Australian labour market 23. Additionally, the ASC had limited alignment with Australian vocational and higher education qualifications, which hindered its direct applicability in some areas 23. Feedback from consultations also indicated a need for stronger stakeholder input in the development and ongoing maintenance of the classification to ensure its relevance and accuracy 53. Recognising these limitations and the evolving needs of the Australian workforce, Jobs and Skills Australia (JSA) has commenced work to replace the ASC with a new National Skills Taxonomy (NST) 16. The NST aims to take a skills-first perspective, focusing on skills that are broader and more transferable than specific tasks 16. It also intends to ensure greater interoperability with existing Australian frameworks such as the Australian Qualifications Framework (AQF) and the National VET Training Database 16. Moreover, the development of the NST will consider global standards like ESCO and ONET to ensure compatibility and learn from international best practices 16. The transition from ASC to NST signifies a commitment to building a more tailored and comprehensive national skills framework for Australia, one that addresses the identified shortcomings of the ASC and better serves the future needs of the Australian economy and workforce.

2.6 UK Skills Taxonomy (Developed by UKCES)‍

Management and Scope

The UK Skills Taxonomy was an initiative developed by the UK Commission for Employment and Skills (UKCES) with the aim of categorising occupational skills across various industries within the United Kingdom 1. While UKCES has since been abolished, its work laid the groundwork for ongoing efforts in skills classification in the UK. Notably, Nesta, an innovation foundation, developed a data-driven skills taxonomy for the UK by employing machine learning techniques to analyse a large volume of online job advertisements 65. This approach resulted in the identification of approximately 7,000 unique skills, which were then organised into a hierarchical structure 66. The taxonomy developed by Nesta comprises three distinct layers: the first layer contains six broad clusters of skills, which are further divided into 35 groups in the second layer, and finally into 143 clusters of specific skills at the third layer 65. Each of the identified skills is situated within one of these 143 specific skill groups 65. Following the abolishment of UKCES, Skills England has been established by the government to provide an authoritative assessment of national and regional skills needs in the UK, combining statistical data with insights from employers and other key stakeholders 67. This new body will likely play a significant role in the future management and evolution of skills classification in the UK. The data-driven methodology employed by Nesta represents a modern approach to building a skills taxonomy, leveraging real-time labour market data to understand and categorise the skills that employers are actively seeking.

Usage

The UK Skills Taxonomy, particularly the data-driven version developed by Nesta, serves several important functions related to education, skills planning, and economic workforce analysis in the UK 1. It provides a consistent method for measuring both the demand and the supply of various skills within the labour market 65. This information is valuable for a wide range of stakeholders, including workers and students who can use the taxonomy to gain a better understanding of the skills they need for different career paths and the value of those skills 65. The taxonomy also offers insights into the demand for different skill clusters, the changes in demand over recent years, and the economic value of these skills as indicated by advertised salaries 65. A key feature of the taxonomy is its user-friendly nature, allowing individuals to search by job title and readily discover the specific skills that are typically required for a wide range of occupations 65. This capability can be particularly beneficial for career exploration and guidance. The data-driven approach ensures that the taxonomy is grounded in the actual skills language used by UK employers in their job advertisements, rather than relying solely on the perspectives of academics or policymakers 65. This focus on real-world demand makes the UK Skills Taxonomy a relevant and practical tool for informing decisions related to education and workforce development in the United Kingdom.

Influence on Australia

The work undertaken in the UK on skills taxonomies, particularly by UKCES, has had some influence on the development of skills frameworks in Australia. For instance, the frameworks developed by UKCES that emphasise the work-readiness of graduates have been referenced in Australian research exploring the skills and employability of graduates 69. This indicates that the conceptual models and approaches developed in the UK have been considered in the Australian context. Furthermore, as Australia embarks on the development of its National Skills Taxonomy (NST), it is drawing lessons from international examples, which would likely include the experiences and methodologies employed in the UK's efforts to classify skills 16. While the specific data and structure of the UK Skills Taxonomy are tailored to the UK labour market, the underlying principles and the data-driven approach, such as that employed by Nesta, offer relevant insights and potential models for Australia's own national framework development. The cross-referencing of UK frameworks in Australian research highlights a degree of knowledge sharing and learning between the two countries in the important area of skills classification.

2.7 World Economic Forum Skills Taxonomy‍

Management and Scope

The World Economic Forum (WEF) manages its Global Skills Taxonomy, which is specifically focused on the reskilling and future skills that will be critical in the context of the Fourth Industrial Revolution 1. The primary goal of this taxonomy is to provide a structured and shared language for skills on a global scale 71. Recognising the multitude of existing skills taxonomies used across different regions and industries, the WEF's framework is designed to act as a "universal adapter," enabling users to cross-walk their own taxonomies against this global framework 74. This interoperability is intended to facilitate better alignment and communication regarding skill requirements and labour market trends among businesses, governments, and the education industry worldwide. The WEF Skills Taxonomy focuses on the skills that are anticipated to be of growing relevance in a rapidly changing labour market, driven by technological advancements, the green transition, and socio-economic shifts 71. By establishing a common language, the WEF aims to support stakeholders in their efforts to effectively reskill and upskill talent, thereby addressing labour market shortages and preparing the global workforce for the jobs of tomorrow 71.

Usage

The World Economic Forum Skills Taxonomy is utilised for a range of purposes aimed at fostering global workforce development and addressing skills gaps 1. It supports businesses in their strategic workforce planning, enabling more effective recruitment, broadening the talent pipeline, and facilitating targeted talent development initiatives that ensure alignment between employee skills and evolving business needs 71. Governments can leverage the taxonomy to develop effective workforce policies that better meet the needs of the market and support strategic national priorities 71. The education industry can also adapt their programs based on the insights provided by the WEF Skills Taxonomy, ensuring that graduates are equipped with the relevant skills for success in the future economy 71. The taxonomy underpins the WEF's broader Reskilling Revolution initiative, which aims to prepare one billion people for the future economy by focusing on sourcing commitments, co-creating solutions, and connecting stakeholders to promote future-ready workforces 72. By providing a shared language for skills, the WEF seeks to enhance communication and collaboration among employers, individuals, and training providers globally, ultimately contributing to a more agile and responsive labour market 71.

Relevance for Australian Businesses

The World Economic Forum Skills Taxonomy holds significant relevance for Australian businesses, particularly those operating in a globalised economy or looking to anticipate future workforce needs. The Australian government, in its development of a National Skills Taxonomy (NST), recognises the importance of aligning with international standards and is considering compatibility with the WEF Skills Taxonomy as one such key benchmark 16. This indicates an understanding that a national skills framework should ideally be interoperable with global efforts to define and classify skills. Singapore's approach to building a skills-first economy, which aligns closely with WEF initiatives, also utilises the Global Skills Taxonomy as a framework that establishes a common language of skills 77. This highlights the growing adoption and influence of the WEF taxonomy in the Asia-Pacific region, of which Australia is a part. For Australian businesses, adopting or aligning with the WEF Skills Taxonomy can provide a valuable framework for understanding future skill requirements, planning workforce development strategies, and ensuring that their workforce is equipped with the skills needed to remain competitive in the evolving global landscape 71. The focus on future skills and the taxonomy's role as a universal adapter make it a useful resource for businesses looking to navigate the changes brought about by the Fourth Industrial Revolution.

2.8 Lightcast Skills Taxonomy

‍Management and Scope

The Burning Glass Skills Taxonomy, now managed by Lightcast (following the merger of Burning Glass and Emsi), is distinguished by its focus on the real-time analysis of labour market demand for skills 1. Lightcast maintains a comprehensive taxonomy of over 33,000 unique skills, which are actively collected and analysed from hundreds of millions of job postings, resumes, and online professional profiles 1. This extensive library of skills is organised into a three-tier hierarchy, comprising broader categories and more specific subcategories, facilitating a structured understanding of the skills landscape 78. The taxonomy encompasses a wide range of skill types, including common skills that are prevalent across many occupations (such as communication and problem-solving), specialised or technical skills specific to particular roles (like Java programming or financial analysis), software skills indicating proficiency with various computer programs, and formal certifications and licenses 78. A key characteristic of the Lightcast Skills Taxonomy is its responsiveness to changes in the labour market; it is updated on a monthly basis to incorporate emerging skills, remove outdated ones, and adjust coding and terminology as necessary 78. This commitment to frequent updates ensures that the taxonomy remains a current and accurate reflection of the skills that are actually in demand by employers. The strength of Lightcast's approach lies in its ability to leverage real-time data to provide timely and relevant insights into the evolving skills needs of the labour market.

Usage

The Lightcast Skills Taxonomy is a valuable resource for a diverse range of stakeholders, including corporations, government agencies, and education providers, who utilise it for skills intelligence purposes 1. It helps these organisations to gain a deeper understanding of the current demand for specific skills, identify emerging skills that are becoming increasingly important, and track the overall importance and prevalence of various skills within the labour market 79. Education providers can leverage the taxonomy to inform their curriculum development, ensuring that their programs align with the skills that employers are actively seeking, thereby enhancing the employability of their graduates 78. The taxonomy also supports the identification of potential career pathways for individuals by highlighting the skills that are transferable between different roles and industries 79. For businesses, it aids in developing effective talent acquisition strategies by providing insights into the skills that they should be prioritising when recruiting new employees 79. Furthermore, the Lightcast Skills Taxonomy is used for broader workforce planning initiatives, helping organizations to identify existing skill gaps within their workforce and to anticipate future skill needs based on labour market trends 78. The actionable data and insights derived from this taxonomy enable stakeholders to make more informed decisions related to skills development, talent management, and overall workforce strategy.

Availability and Use in Australia

Lightcast's data and taxonomies are readily available for use in Australia and New Zealand, providing valuable insights into the labour markets of these regions 83. Notably, Jobs and Skills Australia (JSA), the Australian government agency responsible for national skills and workforce development, utilises Lightcast for international benchmarking purposes in the ongoing development of Australia's National Skills Taxonomy (NST) 16. This indicates that Lightcast's comprehensive and real-time data on skills is considered a valuable resource for understanding global trends and informing national skills strategies in Australia. Additionally, Lightcast's data and taxonomy have been specifically applied in Australia for analysing the cyber security landscape, helping to define the skills, tools, occupations, and certifications that are prevalent within this critical sector 85. The use of Lightcast's resources by government agencies and for specific industry analyses in Australia underscores its relevance and contribution to understanding the Australian labour market and its evolving skill demands. The availability of this data allows various stakeholders in Australia to gain a data-driven perspective on the skills landscape, aiding in decision-making related to education, training, and workforce planning.

3. Comparative Analysis and Key Insights

3.1 Comparative Table of Key Features:

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3.2 Strengths and Limitations of Each Taxonomy:

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ESCO's primary strength lies in its pan-European scope and multilingual accessibility, which are crucial for fostering labour mobility and economic integration across the European Union. Its foundation on the internationally recognised ISCO standard provides a robust structure for occupational classification. However, the sheer scale and complexity of ESCO, with its numerous skills and occupations across multiple languages, can present challenges in terms of navigation and implementation for individual organisations.

ONET stands out due to its highly detailed and regularly updated information on a vast number of occupations within the United States. Its comprehensive Content Model provides a rich understanding of job requirements and worker characteristics. A limitation of ONET is its U.S.-centric nature, which may limit its direct applicability in other national contexts without careful adaptation and validation.

SFIA's strength is its specific focus on the rapidly evolving field of IT and digital skills. Its structure around seven levels of responsibility offers a clear framework for career progression and competency assessment within the technology sector. However, its narrower scope compared to more general taxonomies means it may not be as relevant for organisations outside the IT and digital domains.

The Singapore Skills Framework's sector-specific approach is a significant strength, allowing for tailored frameworks that directly address the unique needs of various industries in Singapore. The strong backing and collaborative development involving government, industry, and education stakeholders ensure its relevance and uptake within the nation. Its limitation is its specific focus on the Singaporean context, making it less directly applicable to other countries.

The Australian Skills Classification represented an important first step for Australia in establishing a skills-based view of its labour market, focusing on core competencies, specialist tasks, and technology use. However, its initial reliance on O*NET data and limited integration with the Australian education system were limitations that led to its eventual replacement by the National Skills Taxonomy.

The UK Skills Taxonomy, particularly the data-driven version by Nesta, offers a dynamic and responsive approach to understanding skill demands by leveraging real-time job advertisement data. Its hierarchical structure provides a detailed categorisation of skills relevant to the UK labour market. As it was developed for the UK context, its direct applicability to other countries may be limited. The transition in management from UKCES to Skills England also indicates an evolving landscape for skills classification in the UK.

The World Economic Forum Skills Taxonomy's key strength is its global focus on future skills, aiming to provide a common language for skills across different countries and sectors in the context of the Fourth Industrial Revolution. Its role as a "universal adapter" for other taxonomies is also a significant advantage. However, being more conceptual and high-level, it may require further granularity and contextualisation for direct operational use by individual organisations.

Lightcast Skills Taxonomy excels in its use of real-time labour market data to identify and categorise a vast number of skills. Its frequent updates ensure that the taxonomy remains current and reflects the latest demands of employers. A potential limitation is its proprietary nature, which may restrict open access and use compared to some publicly managed taxonomies.

3.3 Analysis of Different Approaches to Skill Classification and Granularity:
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The leading skills taxonomies employ various approaches to classify skills, reflecting their diverse objectives and the contexts in which they are used. ESCO and ONET both utilise detailed hierarchical structures, organising skills and occupations into multiple levels of categories and subcategories ². This hierarchical approach allows for a granular understanding of the relationships between broader skill areas and more specific competencies. For instance, ESCO's three-pillar structure and ONET's Content Model provide extensive frameworks for navigating the complex landscape of skills and occupations.

In contrast, SFIA employs a model centred around levels of responsibility ²⁶. Skills within SFIA are defined across these seven levels, indicating the increasing complexity and impact associated with each level of proficiency. This approach is particularly well-suited for professional development and career pathing within the IT and digital sectors.

The Singapore Skills Framework takes a sector-specific approach ⁴⁴. Rather than a single overarching taxonomy, SSF provides individual frameworks tailored to the unique needs of different industries in Singapore. This allows for a deep and relevant classification of skills within each sector, reflecting the specific job roles and career pathways available.

Burning Glass Skills Taxonomy (Lightcast) distinguishes itself by its data-driven methodology and focus on real-time labour market demand ⁷⁸. While it also uses a hierarchical structure, its primary organising principle is the actual occurrence and demand for skills as evidenced in job postings and online profiles. This results in a taxonomy that is highly responsive to the evolving needs of the labour market.

The Australian Skills Classification adopted a faceted approach, categorising skills into Core Competencies, Specialist Tasks, and Technology Tools ⁵². This framework aimed to provide a multi-dimensional view of the skills required for different occupations, encompassing both foundational skills, job-specific activities, and the tools used in those roles.

The granularity of these taxonomies also varies significantly. ESCO and O*NET offer a high level of detail, with thousands of specific skills and occupations. SFIA provides a more focused granularity within the IT domain, with over 120 skills defined across multiple proficiency levels. SSF's granularity is tailored to the specific requirements of each sector it covers. Burning Glass boasts the highest granularity with over 33,000 skills, reflecting its data-centric approach. The level of granularity chosen by each taxonomy is closely linked to its intended use, with more detailed taxonomies being suitable for tasks like job matching and curriculum development, while less granular frameworks might be used for broader strategic planning and international comparisons.

4. The Role of Skills Taxonomies in Workforce Development and Strategy

4.1 Impact on Hiring and Talent Acquisition‍

Skills taxonomies have a profound impact on how organisations approach hiring and talent acquisition. By providing a structured vocabulary of skills, these frameworks enable organisations to move beyond generic job descriptions and define the precise skill requirements for each role ². This leads to the creation of more targeted and effective job advertisements that attract candidates with the specific capabilities needed for success ². The adoption of skills taxonomies facilitates skills-based hiring practices, where recruiters can focus on assessing candidates' actual competencies and abilities, rather than solely relying on traditional indicators such as job titles or academic degrees ².

This shift in focus can significantly widen the talent pool, allowing organisations to identify and recruit individuals with the necessary skills, even if their professional backgrounds are non-traditional ². For example, a candidate who has acquired relevant skills through non-formal learning or practical experience can be more easily identified and considered for roles based on their demonstrated capabilities. Furthermore, skills taxonomies can be seamlessly integrated into various HR technology platforms and talent management systems. This integration enhances the efficiency of matching candidates to job openings and streamlines the overall sourcing process by allowing for skill-based searches and filtering ⁴. The ability to accurately define and identify required skills not only improves the quality of hires but also contributes to a more inclusive and equitable recruitment process by valuing diverse pathways to skill acquisition.

4.2 Facilitating Upskilling and Reskilling Initiatives‍

A critical role of skills taxonomies in workforce development is their ability to facilitate effective upskilling and reskilling initiatives within organisations. These frameworks provide a clear and comprehensive understanding of the skills that are currently present within the workforce and the skills that will be required for future roles and organisational goals ². This clarity enables organisations to accurately identify existing skill gaps at both the individual and organisational levels ². Armed with this understanding, organisations can then design and develop targeted learning and development programs that are specifically aimed at closing these identified skill gaps ².

By mapping current employee skills against the requirements defined in the taxonomy, organisations can create personalised learning paths that focus on developing the specific competencies needed for employees to take on new responsibilities or adapt to evolving job roles. Skills taxonomies also support a culture of continuous learning and professional development by providing a structured framework for employees to understand the skills they need to enhance and the levels of proficiency they should aim to achieve ².

In an era of rapid technological advancements and changing skill demands, the ability to strategically upskill and reskill the workforce is crucial for organisational agility and competitiveness. Skills taxonomies provide the essential foundation for these efforts, enabling organisations to proactively adapt to evolving skill requirements and ensure they have the talent needed to meet future challenges ².

4.3 Informing Education and Training Programs‍

Skills taxonomies play a vital role in shaping the curricula and offerings of education and training programs. By providing a clear articulation of the skills and competencies that are in demand by employers across various industries, these frameworks help educational institutions to align their programs with the actual needs of the labour market ⁷. This alignment ensures that graduates emerge from educational programs with the skills and knowledge that will make them competitive and successful in their chosen fields. Skills taxonomies can also be used to clearly express the learning outcomes of qualifications in terms of specific skills and their levels of proficiency ⁷.

This facilitates a better understanding and comparison of qualifications across different educational systems and countries, enhancing transparency and recognition. Furthermore, these frameworks help to identify emerging skills and future skill requirements that are anticipated to be important in the evolving economy ³. This foresight allows educators to proactively adapt their programs to incorporate these future-oriented skills, ensuring that their students are well-prepared for the jobs of tomorrow. Skills taxonomies can also support the development of more modular and flexible training programs that can be tailored to address specific skill needs within the workforce ⁴³.

By providing a detailed breakdown of skills and competencies, these frameworks enable the creation of targeted training modules that can be combined in various ways to meet the diverse upskilling and reskilling requirements of individuals and organisations. In essence, skills taxonomies serve as a crucial link between the supply of talent from educational institutions and the demand for skills from the labour market, ensuring a more effective and relevant education and training ecosystem.

4.4 Supporting Labour Market Analysis and Policy Development‍

Skills taxonomies are indispensable tools for conducting comprehensive labour market analysis and informing the development of effective workforce policies. They provide a standardised and consistent framework for analysing the demand and supply of skills at various levels – regional, national, and even international ¹.

By categorising and defining skills in a systematic way, these taxonomies enable researchers and policymakers to identify areas of skill shortage or surplus within the labour market ². This information is crucial for informing policy decisions related to education and training investments, as well as immigration policies aimed at addressing critical skill gaps. Governments can leverage the insights from skills taxonomies to develop targeted workforce policies that are aligned with the actual needs of the market and support broader strategic national priorities, such as economic growth and innovation ⁷¹.

Furthermore, these frameworks support economic workforce analysis by providing a basis for forecasting future skills needs, allowing governments and industries to proactively plan for the skills that will be required in the years to come ¹. In an increasingly globalised world, skills taxonomies also facilitate international comparisons of skills and labour markets ¹⁶. This enables the development of international standards and collaborations in areas such as skills recognition and workforce mobility. Overall, skills taxonomies serve as essential tools for evidence-based policymaking in the realm of workforce development, providing the data and insights needed to address labour market challenges, promote economic growth, and build a skilled and adaptable workforce for the future.

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Concluding Musings

The analysis of leading skills taxonomies reveals a diverse landscape of frameworks, each with its own unique characteristics, scope, and primary areas of application. These taxonomies, including ESCO, O*NET, SFIA, SSF, ASC, the UK Skills Taxonomy, the WEF Skills Taxonomy, and the Burning Glass Skills Taxonomy, play a crucial role in structuring the complex world of skills and competencies within the modern labour market. Their significance lies in their ability to facilitate skills-based hiring, guide upskilling and reskilling initiatives, inform education and training programs, and support comprehensive labour market analysis and policy development.

Each of the discussed taxonomies offers distinct contributions. ESCO stands out for its pan-European scope and multilingual nature, aiming to standardise skills and qualifications across the European Union. O*NET provides highly detailed and regularly updated occupational information for the United States, serving as a cornerstone for career planning and workforce analysis. SFIA focuses specifically on the IT and digital sectors, offering a robust framework for managing technical skills and professional development. The Singapore Skills Framework exemplifies a sector-specific approach, deeply integrated with national workforce strategies and emphasising collaboration between government, industry, and education. While the Australian Skills Classification represented an initial step for Australia, its transition to the National Skills Taxonomy signals a commitment to a more tailored and comprehensive national framework. The UK Skills Taxonomy, with its data-driven methodologies, provides valuable insights into the evolving skill demands of the United Kingdom. The World Economic Forum Skills Taxonomy takes a global perspective, focusing on future skills and aiming to serve as a universal language for skills across different frameworks. Finally, the Burning Glass Skills Taxonomy (Lightcast) offers real-time labour market intelligence through its extensive and frequently updated database of skills.

The landscape of skills taxonomies is continuously evolving, with a noticeable trend towards more dynamic and data-driven approaches. The methodologies employed by Nesta in the UK and Lightcast globally highlight the increasing use of real-time labour market data to understand and classify skills. This shift allows for greater responsiveness to the rapidly changing demands of the economy and technological advancements.

Looking ahead, skills taxonomies will continue to be of paramount importance for individuals seeking to navigate their career paths, for organisations striving to build agile and skilled workforces, and for governments aiming to develop effective labour market policies. As the world of work continues to transform, these frameworks will be essential tools for fostering a common understanding of skills, facilitating better alignment between education, training, and employment, and ultimately contributing to a more skilled and prosperous global economy.

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