Source: European Labour Authority

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:

• 84% of occupations (367 out of 436 occupations) were in shortage in one or more country.
• About 40 of the identified shortage occupations have been classified as severely affected by lack of available workers’.
• Market imbalances are fed by structural change in the economy, new labour trends and skill requirements, demographic change and societal developments as well as working conditions, among others.
• Mostly women work in surplus occupations.
• Many workers in surplus occupations were highly qualified.
• The report also contains a specific analysis of labour shortages in the construction sector.

View the Report