Investing in people is the best way to improve job market conditions and help the EU stay competitive. Find out how a European skills initiative will boost talent quality and overcome employment barriers.
With all the disturbances the hiring market has seen in the past few years, it is now relatively safe to say that things are looking up. According to the European Pillar of Social Rights Action Plan, by 2030, at least 78% of people aged 20-64 should expect to be employed. This is great news; it does, however, bring into play another factor that we should be considering if we want to ensure this statistic becomes our reality: people’s skilling.
Currently, 80% of employers and nearly 4 in 5 SMEs in the EU report difficulties in recruiting people with the right skills and qualifications to match their requirements. This is no surprise: technological advancement, the twin (green and digital) transition and demographic shifts have widened existing skills gaps and will most likely remain areas of concern. The rise of AI, for example, is a completely new phenomenon, which we are still navigating. What is more, the EU is projected to lose 1 million workers every year until 2050 as the population ages: once the current workforce retires, who will fill their shoes?
Sectors where skills shortages are most acute
Shortages seem to be affecting as many as 42 occupations and are more prevalent in sectors with challenging working conditions (e.g. healthcare). The COVID-19 pandemic left many in the industry burned out physically and mentally, and as a result, the sector remains short-staffed.
Other sectors, such as construction, ICT and transport, are having it equally bad. Transport especially, has been in the midst of a shortage crisis for a long time. As the number of customer orders steadily increases, especially post-pandemic, the number of freight drivers decreases, putting significant pressures on the industry. Transport’s attractiveness level has dropped, creating large gaps between supply and demand.
A Union of Skills to improve Europe’s talent and facilitate labour matching
Currently, 1 in 5 adults struggle with reading and writing, and 1 in 4 15-year-olds falls short in reading, maths and science. These numbers are concerning, especially as in the next decade, more than half of new job openings will require advanced skill sets.
To address these challenges, the EU is introducing a new framework in the Union of Skills to improve the quality of education and training and promote lifelong learning. A big focus is on increasing the share of students in science, technology, engineering, and mathematics (STEM) and bridging the gender and social inequality gaps observed in these disciplines. The new plan will improve people’s employability, address skills and labour shortages, increase businesses’ productivity and, ultimately, boost the EU’s competitiveness.
Specifically, the Union of Skills will:
- help people acquire basic and advanced skills;
- encourage regular upskilling and reskilling;
- facilitate recruitment across the EU;
- work on attracting and retaining top talent in Europe;
- aid transferability of skills across the EU, increasing intra-EU labour mobility.
The Union of Skills is part of the EU’s ongoing scheme to support skills development and improve people’s lives, both within and outside the workforce. By adopting a person-centric approach, the initiative will also ensure that the EU remains competitive, supported by a large pool of the best talent available.
For more information on how the EU is addressing job market imbalances, read Tackling labour shortages: three ways to train and retain workers.
Related links
European Commission – Union of Skills
European Commission – Upskilling Pathways – New opportunities for adults
Measures to tackle labour shortages: Lessons for future policy
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