Skills and labor shortages continue to be a pressing issue in the EU and are expected to worsen across various sectors and skill levels, according to the EU Commission’s 2023 annual report on employment and the social situation in Europe. In 2022, the MINT areas (mathematics, computer science, natural sciences, and technology) were hit particularly hard, specifically in information and communication technologies (ICT), the construction industry, and the healthcare sector.
The shortage of workers in these sectors is exacerbated by the need to replace retiring workers. Additionally, the working-age population is projected to decline from 265 million to 258 million between 2022 and 2030, further worsening the shortage. Various structural factors contribute to the challenging circumstances, such as a lack of workers with specific professional skills in the MINT field and difficulties retaining and attracting qualified workers in sectors like medicine, nursing, care, and transport due to harsh working conditions and complex human resources management.
Changing skill requirements and increased job demand resulting from the Green Deal also contribute to the shortages in certain occupations, including transportation and storage, construction, electrical engineering, technology for climate neutrality, scientific professions, water supply, and waste management. Investment in retraining and further training to develop “strategically relevant net-zero technologies” is estimated to reach between 1.7 and 4.1 billion euros by 2030 due to the necessary green transition.
While the digital transformation exacerbates the shortage of ICT specialists, it is not a major factor for shortages in other occupations. The impact of artificial intelligence (AI) on the labor market is still unclear, although evidence suggests AI is already transforming work and skill needs in certain sectors. This transformation could positively impact productivity but raises concerns about job losses, stability, wages, and trust in employers’ decision-making regarding AI use.
To address these issues, the Commission proposes investing in programs for adult learning, skills development, and vocational education and training. It is also crucial to address the gender-specific employment gap and promote labor market participation among young and older people, individuals with a migration background, and those with low levels of education. In 86% of occupations with labor shortages, either men or women were heavily dominant. Other proposed measures include providing better financial incentives for work, recruiting skilled workers from third countries, and increasing social dialogue.
