The report examines measures implemented at the national level to address labour shortages, which are increasingly evident and severe in some sectors.

Those examined in the report are health, care, and information and communication technologies, as well as those resulting from the dual green and digital transition. 

It also assesses which measures are adequate, examining factors that support or hinder the implementation of effective policies and outcomes.

Findings show that, by the end of 2022, the average EU vacancy rate had reached a historical high of around 3%. A third of EU employers say these shortages limit their ability to produce and deliver services.

The situation is different within the countries, with the most severe case in Austria, Belgium, Czechia, Germany, and the Netherlands, although in specific sectors and occupations, shortages are evident in most Member States:

As we reported in our last edition, the European Commission has declared 2023 the European Year of Skills, underlining the importance of skills development to meet labour market requirements. 

But the report confirms that tackling labour shortages is not just about skills. That is only one part of the phenomenon. To effectively address shortages, there is the need to go beyond skills and fully understand the drivers behind the lack of labour supply, which differ by sector, occupation, and region. 

Good pay is one crucial factor, but it is only sufficient with other interventions to increase the attractiveness of working and living conditions: employees ask for greater autonomy over working hours, access to training, and career prospects.

The research shows that also the measures to address the issue are different: developing skills (e.g., ramping up of digital skills training, delivered in schools and offered to jobseekers in the case of young unemployed people), making specific sectors and occupations more attractive, activating underutilised labour, and better matching supply and demand. 

It stresses that the role of social partners is critical in ensuring that these efforts are closely related to broader strategies in addressing factors linked to pay and working conditions which are the key drivers of shortages in several sectors featuring high vacancies.

To effectively address these challenges, the causes of labour shortages and the policy context need to be investigated in-depth, and targeted measures to address them need to be developed, with constant involvement and dialogue between the social partners.