Europe’s Growing Skill Shortage Crisis: Employers Struggle to Find Qualified Workers
This information was first reported by Euronews. For more details on the Eurobarometer surveys, read the full article here.
The European job market is facing a mounting crisis as companies struggle to find workers with the right skills. According to surveys conducted in 2023, around 75% of employers in 21 European countries reported difficulties in filling positions due to a lack of qualified applicants. This marks a significant increase from 2018, when only 42% of employers cited similar concerns. As Europe’s demographic challenges intensify and technological shifts demand new skills, the issue shows no signs of abating.
Key Findings from the ManpowerGroup Survey
ManpowerGroup, a global workforce solutions company, reported a staggering 79% increase in the number of employers struggling to find skilled workers across Europe between 2018 and 2023. In its 2023 Talent Shortage survey, ManpowerGroup revealed that three out of four European employers were unable to find the skills they needed. The countries most affected include Germany, Greece, and Ireland, where more than 80% of employers reported talent shortages.
Mara Stefan, VP of Global Insights at ManpowerGroup, emphasized that Europe’s shrinking labor pool, compounded by an aging population and declining birth rates, is exacerbating the skills gap. “In Europe, we see falling unemployment, meaning there are not enough skilled workers to fill existing or new jobs,” Stefan explained, noting that this shortage is particularly stark in countries like Germany, which had an unemployment rate of just 3.0% in 2023.
Which Sectors Are Hit the Hardest?
Small and Medium-sized Enterprises (SMEs) across Europe have been especially affected by this shortage. Eurostat’s 2023 survey found that 54% of European SMEs ranked the difficulty in finding skilled employees as one of their top concerns. Technician roles, in particular, are proving difficult to fill, with nearly half of SMEs reporting a shortage of technically trained staff such as lab workers, mechanics, and engineers.
Photo by Campaign Creators
Customer care roles, including sales professionals and receptionists, are also affected. Around 23% of SMEs reported struggling to find workers with the right skills for these positions.
Why Are Skill Shortages on the Rise?
A combination of factors has driven the surge in Europe’s skill shortages. Demographic changes, including a declining working-age population, have played a significant role. The European Commission has reported that the working-age population in the EU has decreased from 269 million in 2012 to 264 million in 2021, with projections of further losses by 2050. This shrinking labor pool is compounded by rapid technological advancements that demand new skill sets, particularly in digital and technical roles.
The EU Commission has identified several interlinked challenges contributing to the problem. Among them is the insufficient alignment of educational and training systems with the needs of the modern labor market. Employers frequently report that applicants lack the qualifications, skills, and experience necessary for available roles. This trend is particularly strong in countries like Estonia, where 70% of employers cited a mismatch between applicants' qualifications and job requirements.
National Variations in Talent Shortages
While skill shortages are a pan-European issue, some countries have been more severely impacted than others. For example, in Ireland, the percentage of employers unable to find qualified workers soared from 18% in 2018 to 81% in 2023. The UK experienced a similar rise, with its figures jumping from 19% to 80% over the same period. Spain, France, and the Netherlands also reported sharp increases, outpacing the European average.
Nordic countries, however, fared somewhat better. In Sweden, for example, only 18% of employers reported a lack of applicants, significantly below the EU average of 56%. However, even in these countries, the skills gap persists, particularly in highly technical fields.
How Can Europe Address Its Skill Shortage?
To combat this growing crisis, experts are calling for increased investment in upskilling and reskilling initiatives. “Investment in preparing people for tomorrow’s jobs has become—and will remain—critical,” said Mara Stefan. Both government and industry leaders are emphasizing the importance of aligning educational curricula with the demands of the evolving labor market, particularly in the fields of science, technology, engineering, and mathematics (STEM).
The European Union has recognized the urgency of addressing these issues and is working to introduce policies that encourage lifelong learning and vocational training. Programs aimed at reskilling the existing workforce to meet new technological demands are also being prioritized.
As Europe faces one of its most significant employment challenges in recent history, addressing the skill shortage will require coordinated efforts between governments, educational institutions, and businesses. Without action, the labor market will continue to face disruptions, hindering growth in crucial sectors. Whether through targeted training programs or immigration reforms to attract skilled workers from outside the EU, Europe’s ability to adapt to these changes will be critical to its economic future.
New Stardom is a leading online magazine focused on the Future of Work, delivering the latest news on AI, remote work, and emerging workplace trends.
