In this article, we will look at the 15 countries with the highest labor shortages in Europe. We have also discussed the wider occupational challenges in Europe. If you want to skip our detailed analysis, head straight to the 5 Countries With The Highest Labor Shortages In Europe.
In 2022, despite several challenges like geopolitical tensions and economic slowdown, the EU observed exceptional resilience in its labor market. Employment increased to a record high of 213.7 million, with an employment rate peaking at 74.6%. Simultaneously, unemployment rates dropped to a historic low of 6.2%, while youth unemployment fell to 14.5%. To read more about unemployment rates, see countries with the lowest unemployment rates.
However, labor shortages in Europe persist across all skill levels, affecting crucial sectors such as construction, healthcare, and STEM fields. This shortage is exacerbated by the ageing population, as the working-age population declined from 272 million in 2009 to 265 million in 2022 and is projected to further decrease to 258 million by 2030. To read more about worldwide labor shortages, see countries with the highest labor shortages in the world.
Despite developments in digital transitions, the impact is largely confined to ICT-related occupations, where one-third of skills required are digital. However, shortages are expected to persist in different occupations due to evolving skill requirements and poor working conditions in certain sectors. Migrant workers from outside the EU contribute largely to filling these shortages, particularly in low-skilled occupations. Gender segregation in the workforce further complicates the issue, as 86% of shortage occupations are caused by a gender imbalance.
Amazon.com, Inc (NASDAQ:AMZN) has pledged to hire 5,000 refugees across Europe within the next three years, extending their commitment beyond the US initiative. Additionally, they aim to provide training for 10,000 Ukrainians through the ITSkills4U program by AWS. This initiative comes as a response to the escalating refugee crisis, with over 35 million refugees worldwide and an expected increase to 1.2 billion globally by 2050 due to climate change and natural disasters.
Amazon.com, Inc (NASDAQ:AMZN)’s Welcome Door program offers tailored support for refugee and humanitarian-based immigrant employees, including financial reimbursement for immigration processes, mentorship, and access to training and education benefits. As part of World Refugee Week, Amazon.com, Inc (NASDAQ:AMZN)’s volunteers are packing more than 50,000 hygiene kits for displaced people across Europe.
It is also worth highlighting that Amazon.com, Inc (NASDAQ:AMZN) recently celebrated its 20th anniversary in Luxembourg. Employing over 4,250 people from 100 nationalities, Amazon.com, Inc (NASDAQ:AMZN) has become the country's second-largest employer, contributing significantly to the local economy with over €6.6 billion invested between 2010-2022.
On the other hand, Marriott International Inc (NASDAQ:MAR), on World Refugee Day, has pledged to hire over 3,000 refugees worldwide by 2026. This includes commitments to employ 1,500 refugees in Europe by 2026, in addition to the 1,500 refugees already targeted for hiring in the United States by 2025. The initiative highlights how Marriott International Inc (NASDAQ:MAR) is dedicated to fostering inclusivity and economic opportunity within the communities it serves. Currently, Marriott International Inc (NASDAQ:MAR) has already employed over 970 refugees across its European hotels.
Furthermore, Marriott International Inc (NASDAQ:MAR)’s collaboration with organizations like the International Rescue Committee (IRC) has enabled the training and hiring of nearly 1,000 refugees in the United States since 2016. These initiatives aim to provide refugees with skills development and training in the hospitality industry, empowering them to build better futures for themselves and their families. Through its commitment to refugee hiring and partnerships with organizations like the IRC, Marriott International Inc (NASDAQ:MAR) continues to demonstrate its role as a leader in corporate social responsibility, creating positive and sustainable impacts globally.
15 Countries With The Highest Labor Shortages In Europe
Software engineers collaborating on a project while seated in a shared workspace.
Methodology
For countries with the highest labor shortages in Europe, we utilized Manpower Group’s Report on Talent Shortages for 2024 to get the percentage by country of skilled labor shortage. In the case of similar skilled labor shortage percentages, we utilized the World Bank’s data on the ageing population (as % of total population) by country as tiebreaker. The country with a higher percentage of ageing population was ranked higher. By the way, Insider Monkey is an investing website that uses a consensus approach to identify the best stock picks of more than 900 hedge funds investing in US stocks. The website tracks the movement of corporate insiders and hedge funds. Our top 10 consensus stock picks of hedge funds outperformed the S&P 500 stock index by more than 140 percentage points over the last 10 years (see the details here). So, if you are looking for the best stock picks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.Here is a list of the countries with the highest labor shortages in Europe:
15. Switzerland
Skilled Labor Shortage: 73%
Ageing Population: 19%
According to Adecco, there has been a noticeable relaxation in the IT sector, with a significant rise in job seekers last September. In German-speaking Switzerland, the labor shortage was more pronounced at 28% compared to a 14% increase in French-speaking Switzerland. German-speaking Switzerland saw a 16% decrease in job seekers and an 8% increase in vacancies over a year, while French-speaking Switzerland experienced a 10% decrease in job seekers and only a 3% increase in vacancies. It is one of the countries with skill shortages in Europe.
14. Hungary
Skilled Labor Shortage: 73%
Ageing Population: 20%
In Hungary, facing a shortage of laborers amidst strict immigration policies, the government is opening doors to foreign nationals. Around 700,000 Hungarians left for work abroad, prompting the need for approximately half a million new jobs. Companies recruit hundreds of workers monthly from Asia. Notably, a Hungarian-Italian firm hired 60 Indonesian workers for an electric cable factory. Despite concerns over cultural compatibility and wage negotiations, foreign workers are welcomed, providing relief for labor shortages.
13. Belgium
Skilled Labor Shortage: 74%
Ageing Population: 20%
In Belgium, regional shortage occupation lists can help job seekers, particularly foreigners, targeting sectors with skilled worker deficits. Each region - Flanders, Brussels, and Wallonia - manages its list through respective employment agencies. These lists guide policy initiatives, tackling labour shortages in sectors like healthcare, IT, and hospitality, aligning with the European Commission's Year of Skills. It is one of the countries in dire need of healthcare professionals in Europe.
12. Italy
Skilled Labor Shortage: 75%
Ageing Population: 24%
Italy is currently facing critical labor shortages across different sectors and seeks to fill 600,000 job vacancies by welcoming skilled foreign workers. An urgent demand exists in healthcare, science, engineering, and hospitality, with professions such as doctors, nurses, engineers, and restaurant staff topping the list. Italian employers have shown overwhelming interest, submitting 608,000 pre-applications for non-EU workers, but the annual quota stands at 136,000, creating a huge gap. Italy is one of the countries with the worst aging population growth rate in Europe.
11. Sweden
Skilled Labor Shortage: 77%
Ageing Population: 20%
In autumn 2022, private employers faced a 41% skills shortage in recruitment, while public employers experienced a higher rate at 60% in Sweden. Professions like midwives, civil engineers, IT architects, and police officers faced worse shortages. Other occupations, including healthcare assistants, bus drivers, and welders, also experienced notable deficits. Highly skilled roles such as doctors and specialist nurses were particularly affected. Surprisingly, Sweden is also one of the countries with thehighest job opportunities in Europe.
10. Austria
Skilled Labor Shortage: 78%
Ageing Population: 20%
Austria plans to attract over 15,000 skilled workers annually from non-EU countries by 2027 through the Red-White-Red Card system. The reform aims to ease access to the labor market. Cooperation among organizations will expedite procedures. Despite efforts, criticisms suggest companies must improve working conditions to effectively address labor shortages. It is one of the countries with the worst labor shortages in Europe.
9. Spain
Skilled Labor Shortage: 78%
Ageing Population: 20%
Spain is facing a dire labor shortage in its hospitality sector, with a staggering demand for 60,000 workers. This shortage primarily comes from an increase in international tourism, as evidenced by January's 65.8% increase in visitors compared to last year.
8. Slovakia
Skilled Labor Shortage: 79%
Ageing Population: 17%
In 2022, Slovakia saw a notable rise in the presence of Indian workers, reaching 1,350 individuals. This increase was mainly due to the worsening staffing shortages observed in the IT and automotive sectors. The confirmation of this increase came from the Labour, Social Affairs, and Family Office, highlighting the valuable contribution of Indian and other Asian nationals in filling crucial job vacancies, including positions such as truck drivers and welders. It is one of the countries with highest job openings for Asians in Europe.
7. Romania
Skilled Labor Shortage: 79%
Ageing Population: 19%
In 2019, a nationwide study in Romania revealed a huge labor shortage of 300,000 individuals, a figure expected to escalate to 549,000 by 2023. According to the Randstad HR Trends Study, the country could potentially face a workforce deficit of one million. This shortage is exacerbated by the migration of professionals including healthcare workers, temporary laborers, IT specialists, and students, all of whom contribute to the widening gap.
6. United Kingdom
Skilled Labor Shortage: 80%
Ageing Population: 19%
Since the implementation of the post-Brexit points-based immigration system, foreign interest in UK jobs has surged, with Indeed reporting a doubling in inquiries, notably from non-EU nations like India and Nigeria. The proportion of foreign job searches escalated to 5.5% in June 2023 from 2.2% in April 2021. Key sectors attracting attention include social care and software development. Notably, the UK accepted 338,300 permanent migrants in 2021. The UK is the also one of the best countries for education.
