Labour and Skills Shortages in EU Member States: Trends, Challenges and Policy Responses

The European Union labour market is characterised by the coexistence of relatively low unemployment with persistent recruitment difficulties and skills shortages in certain sectors and occupations. The study examines the relationship between labour demand dynamics, the structure and distribution of skills and the intensity of labour shortages in the Member States in an integrated manner, using only harmonised secondary data from the “Labor & Skills Shortages in Europe” report. The analysis tracks the evolution of unemployment, job vacancy rates and employment flows, the sectoral and occupational distribution of the shortage, employers’ perceptions, as well as the role of education and skills systems. The results indicate that, although EU unemployment has reached around 6% in 2025 and occupational mobility remains high, recruitment pressures persist, being concentrated in construction, services and technical/manual occupations, but also in professions with high levels of occupational pressure. Companies’ perceptions confirm that the difficulty of finding employees with the right skills is a central issue, and extended recruitment times suggest rigidities in matching. The increase in the share of the population with higher education does not automatically translate into an alignment of skills with sectoral demand, and differences between countries in educational performance and skills systems contribute to national divergences. The main conclusion is that the shortage is predominantly structural and qualitative in nature, requiring coordinated policy responses in education, training and the attractiveness of shortage occupations.