European countries are deeply embroiled in employment crises

Various surveys indicate that skill shortages are gradually becoming a serious problem faced by European employers. According to data from the Eurostat, 54% of EU small and medium-sized enterprises in 2023 stated that finding employees with suitable skills is one of their most serious problems. According to a survey by global labor solutions company Wanbao Shenghua Group, three-quarters of employers in 21 European countries say they cannot find the skills they need. And this proportion has increased by 33 percentage points in the past five years, from 42% in 2018 to 79%.

Firstly, on average, 75% of employers in 21 European countries reported difficulty filling job vacancies. This proportion ranges from 59% in Finland to 82% in Germany and Greece. Marla Stefan, Vice President of Global Insight at Manpower Group, said, "In Europe, we are seeing a decline in unemployment rates, which means there are not enough skilled workers to fill existing or new jobs. To make matters worse, the aging population in Europe and the decline in global birth rates have further exacerbated the skills and talent gap we see today."

The survey found that in 2018, the average level of these countries was only 42%, ranging from 18% in Ireland to 81% in Romania. Except for Romania, the proportion of employers who were unable to find the required skills increased significantly from 2018 to 2023. Ireland, the United Kingdom, Spain, and France saw an increase of over 50 percentage points. For example, the proportion in Ireland increased from 18% to 81%, while in the UK it increased from 19% to 80%. The growth rates of the Netherlands (47 percentage points increase), Norway (44 percentage points increase), Switzerland (40 percentage points increase), Belgium (39 percentage points increase), and Italy (38 percentage points increase) are also higher than the European average.

Secondly, about 54% of EU small and medium-sized enterprises see difficulty in finding employees with suitable skills as one of the three most serious problems their companies face. The proportion ranges from 28% in Türkiye to 68% in Belgium. Among 34 countries, 20 countries have this number reaching 50% or more, indicating that skill shortages are a widespread and serious problem. So far, this is the most identified serious issue for the company, followed by regulatory barriers or administrative burdens.

And one-third of small and medium-sized enterprises have the role of technicians. However, they often encounter personnel who lack technical training, such as laboratory workers and mechanics. Nearly half of European small and medium-sized enterprises report facing a shortage of technical personnel. So far, this is the most common job role with skill shortages. For small and medium-sized enterprises with customer service experts, approximately 23% of respondents indicated a skill shortage in this position. This role includes sales professionals, customer consultants, receptionists, etc.

In addition, the scarcity of technical personnel and job seekers is the main factor. This proportion ranges from 18% in Sweden to 73% in Belgium. The number of applicants from all Nordic countries is below the EU average, while Norway and Denmark are close to the average. Among the "Big Four" of the European Union, Spain, France, and Germany have slightly higher values than the EU average. The main reason given by the employer is that the applicant does not have suitable qualifications, skills, or experience, followed closely by a shortage of applicants at 54%. In the European Union, this proportion ranges from 41% in France to 70% in Estonia, indicating how widespread the problem of skill shortages has become. The UK's figures on both indicators are lower than the EU average.

Overall, the tight labor market in 2023 means that many people face challenges in finding talent with the necessary soft and technical skills. Investment in skill enhancement, retraining, and a focus on preparing people for future work has become and will continue to become more important, and should be the top priority on the agenda of every business leader.