Employment and labour markets

Measures to tackle labour shortages: Lessons for future policyForthcoming

Report
Planned publication date
March 2023
Author(s): 
Weber, Tina; Adăscăliței, Dragoș; Isusi, Iñigo; Durán López, Jessica; Hahne, Anne Sophie; Spielhofer, Thomas; Hadjivassiliou, Kari

Key findings

  • Labour shortages in the EU are limiting production and services delivery in several sectors and the fight for talent is particularly acute in countries such as Austria, Belgium, Czechia, Germany and the Netherlands. As drivers of these shortages vary by sector, occupation and region, measures to address them must respond in different ways, ranging from developing skills, making certain sectors and occupations more attractive, activating underutilised labour, and better matching supply and demand – Findings confirm that tackling labour shortages is not just about skills.
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  • Labour shortages in the EU are limiting production and services delivery in several sectors and the fight for talent is particularly acute in countries such as Austria, Belgium, Czechia, Germany and the Netherlands. As drivers of these shortages vary by sector, occupation and region, measures to address them must respond in different ways, ranging from developing skills, making certain sectors and occupations more attractive, activating underutilised labour, and better matching supply and demand – Findings confirm that tackling labour shortages is not just about skills.
  • Labour shortages are particularly prevalent in sectors with challenging working conditions, such as health and long-term care. Low levels of investment coupled with the impact of the pandemic and a gender-segregated labour market are contributing to the shortage of health and long-term care workers in a sector where the EU’s ageing population and workforce is also set to exacerbate these shortages further in the coming years.
  • Many measures to address shortages in the health and long-term care sectors focus on pay and working conditions. While initiatives to tackle the issue of low wages in some central and eastern European countries have helped to slow the numbers considering working abroad, focusing on pay alone is often insufficient without other quality of life factors that make work more attractive, such as education infrastructure, greater autonomy over working hours, access to training and career progression and more meaningful work.
  • Measures to make use of existing labour are especially important in ICT and in the context of the green and digital transition where skills mismatch is the biggest driver of shortages. With rapidly evolving technological developments and the growing need to identify future skills needs in a greening economy, joint efforts between governments, social partners and training providers will be critical to identify existing skills needs and forecast future ones. The 2023 European Year of Skills is an important opportunity to promote effective and inclusive investment in training across Europe.
  • Measures targeting underutilised groups in the labour market need to provide holistic support that addresses factors preventing labour market participation, such as health issues and lack of access to affordable care, as well as training and work experience needs. This requires the close collaboration of social partners and other relevant bodies in the context of broader measures, such as work–life balance policies and tax and benefit incentives.
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Abstract

As economies begin to recover from the COVID-19 pandemic, labour shortages are becoming increasingly evident despite the impact of the war in Ukraine on energy and commodity prices. These include shortages exacerbated by the crisis in some sectors and professions where they had been endemic for sRead more

As economies begin to recover from the COVID-19 pandemic, labour shortages are becoming increasingly evident despite the impact of the war in Ukraine on energy and commodity prices. These include shortages exacerbated by the crisis in some sectors and professions where they had been endemic for some time. This report looks at measures implemented at national level to tackle labour shortages in the health, care, and information and communication technology sectors, as well as those arising from the twin green and digital transition. It assesses what measures are effective and explores the contextual factors supporting or hindering effective policy implementation and outcomes.

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