Impact of health and skills on the risk of weak labour market attachment

This study examines how skills use influences labor market attachment among individuals with health limitations using European Union Labour Force Survey data from 2022. Our analysis reveals that digital and social skills use significantly improve employment prospects within this population, while cognitive skills show a more complex relationship with labor market outcomes. Health limitations correlate with higher probabilities of working hour mismatches, particularly overemployment. However, these effects vary by skill type and use.
For policymakers addressing workforce shortages in ageing societies, our findings suggest targeted skill development programs may provide more practical interventions than occupational mobility strategies. By enhancing specific competencies, particularly digital and social skills, governments can simultaneously improve economic outcomes for individuals with health limitations while addressing labor market demands.