New survey of European companies highlights critical labour and skills shortages

30 October 2023 - BusinessEurope today published the results of a new survey of European companies which underscores the skills and recruitment challenges that they are facing.

BusinessEurope Director General Markus J. Beyrer said: "Our survey of European companies confirmed that they are facing growing labour and skills shortages. This is fuelled by three factors: demographic change, high rates of inactivity and low levels of intra-EU mobility. These shortages will continue to be Europe’s key labour market challenge in the coming years.

Respondents of our survey confirm that employers are facing shortages of people across all skill levels. However, the shortages are reported as being most acute in technical and engineering-related professions: almost half (46%) of respondents identify a need for digital and STEM skills.

They also report that less applications are being submitted, more job seekers are dropping out of recruitment processes and there is a higher turnover of staff. Companies are therefore hiring people that do not match all the job criteria and provide training after a person joins the company. Almost two thirds (66%) of the respondents also underline the need for greater intra-EU mobility and third-country migration to help offset their talent shortages.

All this data highlights that the announced EU action plan to address labour and skills shortages must tackle employment, education, and training, as well as mobility and migration. This action plan needs to be embedded in a wider European competitiveness strategy."

Please find here the full BusinessEurope labour and skills shortages survey.