Competitiveness and employment perspectives are determined not only by formal qualifications, but also by work experience-related knowledge, routine and social competencies such as team spirit and willingness to learn on an ongoing basis. Specific occupational knowledge is an important precondition for labour market participation, but is not enough on its own. In addition, a broad fundamental knowledge and methodological skills, such as are required to tackle unanticipated problems, as well as social competencies are necessary. The latter in particular are closely linked to personal characteristics and have far-reaching consequences. They are important for an individual to be able to perform at the workplace or in production processes involving a division of labour, and to apply formal occupational qualifications in a real-world workplace setting; social competencies matter for the effective use of formal qualifications at the workplace and hence for the competitiveness of firms.