Too many jobs for too few workers?
Too many jobs for too few workers?
ELA publishes the EURES Report on labour shortages and surpluses 2023
The European labour market is tightening, in spite of slower economic growth. Many companies are now competing for workers. Sectors such as construction and engineering crafts, healthcare and ICT occupations are among the most affected. These are some of the insights of the sixth edition of the EURES report on labour market imbalances 2023, published by the European Labour Authority (ELA).
The sixth edition of the EURES report on labour market imbalances shows a tightening labour market across Europe. In spite of slower economic growth many companies are competing for workers who are willing or able to work in the jobs offered at the location where they are needed. This is particularly obvious in construction and engineering crafts, healthcare and ICT occupations.
Reasons are manifold: structural change in the economy, the digital and green transition resulting in changing skill requirements, demographic change and societal developments, unattractive working conditions or mismatches between workers’ and employers’ preferences are just a few of them.
Among the most critical shortage occupations – i.e., shortages that are widespread and severe – were: heavy truck drivers, nursing professionals and (specialist) doctors, electricians, roofers, waiters or construction labourers.
More than 60% of those who were employed in surplus occupations in the EU in 2022 were women while only 27% of those who were employed in the shortage occupations were women. This results in a less favourable labour market situation of women compared to men.
Many workers in surplus occupations were highly qualified showing that a high level of education does not automatically correspond to good employment opportunities.
In some of the shortage occupations the share of young workers is low. As a result, the structural shortages are expected to remain in the future, and partly even grow, when workers retire and the influx of young workers cannot fill the gap.
One aim of the report was to identify where cross-border job matching could be possible. For about 2/3 of the identified shortage occupations there is at least one country where there is a surplus of workers in this occupation. However, for the most widespread shortages, common in many European countries, intra-EU mobility is likely not the ‘silver bullet’, as labour surpluses in these occupations either exist nowhere or are limited to very few countries only. Construction labourers are an exception.
Key insights:
The report also contains a specific analysis of labour shortages in the construction sector.
The EURES Report on labour shortages and surpluses is published annually since 2016. Much of the methodology for identifying labour shortages and surpluses has remained the same since the first report was published. This allows the reader to explore how labour shortages and surpluses have evolved over time.
The structure of the report has undergone considerable change – especially in the past two years. While the primary source of the data on labour market imbalances continues to be the EURES National Coordination Offices (NCOs), additional quantitative and qualitative sources have been added. This edition of the report includes specific analyses from a sector perspective (i.e., the construction sector), a more in-depth exploration of the role of intra-EU labour mobility and migration, and insights from five countries of the EURES Network.
Note to Editors: direct comparison on total number of shortages/surpluses over time is not possible based on the annual reports due to the changing nature of the occupations. However, the report explores, since past 6 years, whether or not the same shortage occupations appear again and again in the list.
Pia-Johanna Fallström
European Labour Authority
Head of communication sector & Spokesperson
pressela [dot] europa [dot] eu (press[at]ela[dot]europa[dot]eu)