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Smarter Use of Skills – A Path to Higher Productivity and Better Quality of Life

Smarter Use of Skills – A Path to Higher Productivity and Better Quality of Life

Izglītības un zinātnes ministrija

Data from the Survey of Adult Skills (PIAAC), published by the Organisation for Economic Co-operation and Development (OECD) on 6 February 2026, show that in many countries, including Latvia, a significant share of employees do not fully use their skills at work. This results in losses not only for employees themselves, but also for companies and the national economy as a whole.

The study, conducted in 2023, measured adult performance in key information-processing domains – literacy, numeracy and adaptive problem-solving – and surveyed adults about how these skills are used in the workplace. In addition to examining how frequently adults perform tasks involving reading, writing, calculating, ICT use and problem-solving, the study also explored the use of seven general skills, such as collaboration, self-organisation, autonomy in task execution, learning at work, influencing (presenting, negotiating, persuading), dexterity and physical skills. Respondents reported how often they carried out specific tasks related to each skill.

Across OECD countries, there is substantial untapped human capital. These are individuals with high-level skills who are not given sufficient opportunities to apply them in their daily work. Importantly, women use their skills less frequently than men on average, even when they possess similar skill levels and hold comparable positions. The Survey of Adult Skills reveals that even when the education system has provided employees with a high level of skills, these skills may not be used regularly or effectively at work.

The OECD notes that countries invest heavily in education and skills development; however, if these skills are not used, productivity, innovation potential and job satisfaction do not increase. For example, in Latvia, 25% of adults with high literacy skills (i.e. the ability to analyse and work with texts) are employed in jobs where these skills are used infrequently.

The study shows that in OECD countries, including Latvia, self-organisation skills are the most frequently used in the workplace. In many countries, the second most frequently used skill is the ability to independently plan work tasks. In Latvia, however, dexterity – or manual agility – is cited as the second most frequently used skill. Collaboration skills are also relatively widely used across all surveyed countries, which aligns with recent labour market surveys indicating that social skills, such as collaboration, are becoming increasingly in demand.

The frequency of dexterity use in the workplace varies more across countries than any other skill. For example, in Latvia, Slovakia and Chile, tasks requiring manual precision are performed at least once a week, if not daily. By contrast, in France and Singapore, dexterity is among the least used skills. This sharp contrast highlights the differing economic structures of OECD member states. Countries where a significant share of the workforce is employed in manufacturing tend to demand more manual skills, whereas economies oriented towards information technology and professional services – often referred to as knowledge economies – place less emphasis on manual skills.

Greater autonomy in carrying out work tasks and the ability to organise one’s own work are closely associated with a lower risk of burnout and higher job satisfaction. At the same time, the study emphasises that broader use of skills generally promotes employee well-being, although there are exceptions. Intensive use of physical skills, particularly in occupations with high physical demands and limited autonomy in task execution, is linked to a higher risk of burnout and lower job satisfaction. This underscores the importance of working conditions and employees’ ability to influence their work for overall health and well-being.

As in other OECD countries, skill use in Latvia also has a significant impact on wages. In Latvia, employees who more frequently use influencing, presenting and persuading skills earn on average 7% higher wages, while intensive use of physical skills is associated with incomes that are on average 6% lower. OECD data show that higher use of information-processing skills is associated with both greater productivity and higher job quality.

The data indicate that over the past decade, the use of information-processing skills has increased significantly and consistently across countries, while the use of general skills has remained broadly stable. The use of reading, writing, numeracy, ICT and problem-solving skills has expanded considerably.

ICT use has grown particularly among low- and medium-qualified workers, suggesting that digital skill requirements are now widespread across the labour market. In contrast, the use of physical and dexterity skills has declined, indicating a continued shift towards the automation of physical tasks.

The OECD emphasises that the future challenge for countries is not only to develop workers’ skills, but also to create work environments where employees have the opportunity to use these skills fully and with greater autonomy. Such an approach simultaneously boosts productivity, improves wages and reduces burnout risk, ensuring a higher return on investment in education.

More information about skill use in workplaces is available in English in the OECD PIAAC thematic report How Workers Use, or Don’t Use, Their Skills in the Workplace.

A summary of the report How Workers Use, or Don’t Use, their Skills in the Workplace is available in Latvian on the website of the Ministry of Education and Science.

Participation in international education studies is one of the measures implemented by the Ministry of Education and Science with support from the European Union Funds to build a sustainable and efficient education system and improve resource management. 

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