
Skills shortages are increasingly becoming a serious problem for employers across Europe. In 2023, 54% of Small and Medium Enterprises (SMEs) in the EU reported that difficulties in finding employees with the right skills was one of their most serious issues, according to Eurostat. ManpowerGroup, a global workforce solutions company, also found that three out of four employers in 21 European countries could not find the skills they were looking for. This was 42% in 2018, which corresponds to 33 percentage points or an increase of 79% in the last five years. The survey, published in October 2023, showed that the talent shortage is a significant global challenge.
The shortage also included European countries. On average, across 21 European countries, 75% of employers reported difficulty filling job roles, ranging from 59% in Finland to 82% in Germany and Greece. In 2018, the average was just 42% in these countries, ranging from 18% in Ireland to 81% in Romania. With the exception of Romania, the proportion of employers unable to find the necessary skills increased significantly between 2018 and 2023.
This increase was more than 50 percentage points in Ireland, the UK, Spain and France. For example, it went from 18% to 81% in Ireland and from 19% to 80% in the UK. Growth was also higher than the European average in the Netherlands (47 pp), Norway (44 pp), Switzerland (40 pp), Belgium (39 pp) and Italy (38 pp). The Eurobarometer survey, conducted at the end of 2023, provides comprehensive insights into staff shortages. Some 54% of EU SMEs identified difficulties in finding employees with the right skills as one of the top three most serious problems for their company.
It varied from 28% in Turkey to 68% in Belgium. This figure was 50% or more in 20 out of 34 countries, showing how common and serious a skills shortage is. This was, by far, the most serious problem identified for companies, followed by regulatory barriers or administrative burdens (34%). Technician roles existed in a third of SMEs. However, they usually lack technically trained personnel, such as laboratory workers and mechanics. Almost half (42%) of European SMEs reported that they face a shortage of technicians. This is, by far, the job role most identified with skills shortages.
For SMEs with customer care experts, about 23% of respondents said there was a skills shortage for the positions. This role includes sales professionals, customer advisors, receptionists, etc. On average, 56% of EU employers answered that they had few or no applicants when asked about the main reasons for their skills shortage according to the Eurobarometer survey.
This was the predominant factor, ranging from 18% in Sweden to 73% in Belgium. All the Nordic countries reported figures below the EU average in identifying applicant shortages, while Norway and Denmark were close to the average. Among the 'Big Four' of the EU, Spain, France and Germany had slightly higher values than the EU average. The main reasons given by employers were that applicants did not have the right qualifications, skills or experience, closely followed by the lack of applicants at 54%. In the EU, it ranged from 41% in France to 70% in Estonia, showing how widespread the skills shortage issue has become. The UK had lower figures than the EU average on both indicators. The EU Commission has highlighted that labor and skills shortages have been increasing in all member states for nearly a decade. These shortages are mainly caused by:
· demographic shifts
· demand for new skills related to technological developments
· challenges related to working conditions.
The EU's working-age population fell from 269 million in 2012 to 264 million in 2021. The loss of a further 35 million people by 2050 is expected according to Business Europe's Job and Skills Shortage Analysis report based on Brussels, which highlights the challenges involved. He found that insufficient orientation of the education and training curriculum in relation to the needs of the labor market is a further component leading to shortages of appropriately qualified workers. The Talent Shortage Survey methodology changed for 2022, moving it from a phone-based approach to an online one. While methodological changes may affect the results, the largest increase from 45% to 69% occurred before this methodology change.