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Cedefop's European Skills Index is a composite indicator that measures the performance of a country’s skills system. The objective of a skills system is not only to continually develop the skills of the population, but also to activate and effectively match these skills to the needs of employers in the labour market. The European Skills Index helps to monitor how well each country’s skills system is performing over time.

The European Skills Index is comprised of three pillars, each of which measures a different aspect of a country's skills formation and matching system; these pillars are used to organise and aggregate 15 individual indicators into a single summary measure.