What’s the latest on labour shortages and surpluses in Europe?

Ever year, the European Labour Authority provides information on the status of the labour market via its series of EURES reports on imbalances. The seventh edition of the report paints an even more vivid picture thanks to new methods allowing for a more comprehensive overview of what is happening, where, and why.

So, what should you expect to read in the new edition?

The current skills gap situation

While the job market has been performing better and better, and employment rates are significantly higher than a few years ago, imbalances between supply and demand still exist and will very likely continue to do so. Why? In recent years, several new factors have emerged, introducing new parameters we have to deal with: demographic changes (and the ageing population), technological advancements, the green and digital transitions, and failure to bring out the attractiveness factor of several occupations all contribute to leaving key sectors ‘empty’. On the contrary, for others there is an overabundance of supply.

Occupations where shortages are most noted include welders, healthcare professionals, cooks and electricians. Surpluses are most observed in clerical support and other similar jobs, which, not coincidentally, are among those most affected by the introduction of AI.

Are you affected?

The latest report emphases the types and characteristics of workers in shortage and surplus occupations. Gender disparity appears to be an issue. Women represent only 29 % of workers in shortage occupations, especially traditional male-dominated fields such as construction and engineering. On the other hand, the number of women workers in surplus occupations – particularly in clerical positions – rises to 62 %.

Young people are another demographic group that is affected. Their presence in shortage occupations remains limited, raising concerns about what will happen once older workers retire.

Lack of digital skills is also noted as problematic, as currently only 5.6 % of European adults possess basic digital skills, let alone the advanced skills needed in today’s evolving job market.

Transport and storage sectors under the microscope

While the report’s previous edition featured a detailed examination of labour shortages within the construction sector, this edition focuses on the transportation and storage sector, which has been in the middle of a shortage crisis for some time. Notably, since the COVID-19 pandemic, the number of freight drivers remains low, while the number of customer orders has been increasing. Why is this happening?

The crisis in the sector has been attributed mostly to the failure to recruit new – and younger – people. Retirements mean that vacated positions remain empty. What’s more, working conditions in the sector are seen as unattractive: long hours, social isolation and safety issues make people think twice before choosing a career in transport. The report also uncovered issues like undeclared work and bogus self-employment, which further disrupt both the sector’s reputation and its future prospects.

The way forward

According to the report, a crucial step in addressing labour shortages and surpluses is to invest in skills, preparing people especially for the digital revolution. Initiatives such as the Union of Skills improve the quality of education and training and promote lifelong learning, thus improving people’s employability. Furthermore, increasing participation in STEM education will bridge the age, gender and social inequality gaps observed in these disciplines, opening the door to a greater variety of career possibilities.

To find out more, read the full report here.

EURES: How to find and train for jobs that are in demand

European Commission - Union of Skills

European Labour Authority: Labour shortages and surpluses in Europe 2023

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