Europe's Skills Crisis: 75% of Employers Struggle to Find Workers with the Right Qualifications (2023)
In 2023, 75% of employers in 21 European countries reported having difficulty finding workers with the necessary skills, an increase of 33 percentage points from 2018.
This trend is becoming a major concern for European businesses, with 54% of Small and Medium-sized Enterprises (SMEs) in the EU citing it as one of their most significant issues.
According to ManpowerGroup, this represents a 79% rise in skill shortages over the last five years.
The October 2023 Talent Shortage survey revealed a global issue with a lack of skilled workers.
Across 21 European countries, 75% of employers reported difficulty filling job roles, with Germany and Greece experiencing the most significant challenges at 82% and 81%, respectively.
Mara Stefan, VP of Global Insights at ManpowerGroup, attributed this to falling unemployment and an ageing population in Europe, which is compounded by a global decline in birthrates.
In 2023, Germany and Finland had unemployment rates of 3.0% and 7.0% respectively, leading to a smaller labor pool for finding skilled workers.
In 2018, the percentage of employers unable to find the necessary skills varied from 18% in Ireland to 81% in Romania, with significant increases in Ireland, the UK, Spain, and France.
The rise was over 50 percentage points in these countries, exceeding the European average in several nations including Italy, Belgium, Norway, Switzerland, and the Netherlands.
A Eurobarometer survey conducted in late 2023 revealed that staff shortages were a major concern for European employers.
Approximately 54% of Small and Medium Enterprises (SMEs) in the EU identified skill shortages as one of the top three most significant issues for their business.
This issue was particularly prevalent in Belgium (68%) and less so in Turkey (28%).
Over 20 out of 34 countries reported skill shortages affecting more than 50% of their SMEs.
The most commonly reported problem was the lack of technically trained staff, such as lab workers and mechanics (42%).
Technician roles were the most frequently identified with skills shortages.
Additionally, 23% of SMEs with customer care experts reported a skills shortage for those positions.
The Eurobarometer survey revealed that 56% of EU employers reported skill shortages, with 54% attributing this to a lack of applicants with the right qualifications, skills, or experience.
The highest percentage of employers reporting a lack of applicants was in Belgium (73%), while the Nordic countries reported lower figures.
The main reasons for skill shortages varied from 41% in France to 70% in Estonia.
Overall, the survey indicates that the issue of skill shortages is widespread in the EU.
The EU is experiencing increasing labor and skills shortages, which have been a problem for nearly a decade.
This issue is being driven by demographic shifts, the need for new skills due to technological advancements, and challenges related to working conditions.
The EU's working-age population has decreased from 269 million in 2012 to 264 million in 2021.
Mara Stefan of ManpowerGroup emphasized the importance of investing in upskilling and reskilling to prepare for future jobs.
The "Analysis of Labour and Skills Shortages" report by Business Europe predicts a loss of 35 million workers in Europe by 2050 due to interconnected challenges.
These challenges include a mismatch between education and training curriculums and labor market needs, leading to a shortage of appropriately skilled workers.
The Talent Shortage Survey methodology changed from phone-based to online for 2022, but the significant increase from 45% to 69% in reported talent shortages occurred before this change.
According to ManpowerGroup, this represents a 79% rise in skill shortages over the last five years.
The October 2023 Talent Shortage survey revealed a global issue with a lack of skilled workers.
Across 21 European countries, 75% of employers reported difficulty filling job roles, with Germany and Greece experiencing the most significant challenges at 82% and 81%, respectively.
Mara Stefan, VP of Global Insights at ManpowerGroup, attributed this to falling unemployment and an ageing population in Europe, which is compounded by a global decline in birthrates.
In 2023, Germany and Finland had unemployment rates of 3.0% and 7.0% respectively, leading to a smaller labor pool for finding skilled workers.
In 2018, the percentage of employers unable to find the necessary skills varied from 18% in Ireland to 81% in Romania, with significant increases in Ireland, the UK, Spain, and France.
The rise was over 50 percentage points in these countries, exceeding the European average in several nations including Italy, Belgium, Norway, Switzerland, and the Netherlands.
A Eurobarometer survey conducted in late 2023 revealed that staff shortages were a major concern for European employers.
Approximately 54% of Small and Medium Enterprises (SMEs) in the EU identified skill shortages as one of the top three most significant issues for their business.
This issue was particularly prevalent in Belgium (68%) and less so in Turkey (28%).
Over 20 out of 34 countries reported skill shortages affecting more than 50% of their SMEs.
The most commonly reported problem was the lack of technically trained staff, such as lab workers and mechanics (42%).
Technician roles were the most frequently identified with skills shortages.
Additionally, 23% of SMEs with customer care experts reported a skills shortage for those positions.
The Eurobarometer survey revealed that 56% of EU employers reported skill shortages, with 54% attributing this to a lack of applicants with the right qualifications, skills, or experience.
The highest percentage of employers reporting a lack of applicants was in Belgium (73%), while the Nordic countries reported lower figures.
The main reasons for skill shortages varied from 41% in France to 70% in Estonia.
Overall, the survey indicates that the issue of skill shortages is widespread in the EU.
The EU is experiencing increasing labor and skills shortages, which have been a problem for nearly a decade.
This issue is being driven by demographic shifts, the need for new skills due to technological advancements, and challenges related to working conditions.
The EU's working-age population has decreased from 269 million in 2012 to 264 million in 2021.
Mara Stefan of ManpowerGroup emphasized the importance of investing in upskilling and reskilling to prepare for future jobs.
The "Analysis of Labour and Skills Shortages" report by Business Europe predicts a loss of 35 million workers in Europe by 2050 due to interconnected challenges.
These challenges include a mismatch between education and training curriculums and labor market needs, leading to a shortage of appropriately skilled workers.
The Talent Shortage Survey methodology changed from phone-based to online for 2022, but the significant increase from 45% to 69% in reported talent shortages occurred before this change.
