The European labour market is challenged by changes in the demographic composition of the labour force and increasing work complexities and processes. Skills forecasting makes useful contribution to decisions by policy-makers, experts and individuals. In this publication, Cedefop presents the latest results of skills supply and demand forecasts. Alongside the most likely scenario, it shows the impact of alternative labour market activation or migration policies on future labour market imbalances, illustrating the effects of the "highest possible" labour market activity rates based on past and possible future baseline trends. The role of migration in mitigating labour market imbalances is incorporated into the scenario, responding to available job opportunities, income differentials and unemployment levels across Member States. Three annexes are provided: (1) Skills supply: Detailed baseline scenario results; (2) Skills demand: Detailed baseline scenario results; and (3) List of contributing individual country experts.