Ireland faces critical challenges to avoid a skills shortage in the workplace.

An OECD report going to Cabinet this morning for the Year of Skills, warns many Irish adults are at risk of falling behind in their jobs.

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The report finds many people don't have the skills to thrive in their current job or are unprepared for change.

While participation in re-skilling is above EU average in Ireland, it's up to 40 per cent behind leading European countries.