In this article, we will look at the 5 countries with the highest labor shortages in Europe. We have also discussed the wider occupational challenges in Europe in another article. If you are interested in reading about that along with a more extensive list, head straight to the 15 Countries With The Highest Labor Shortages In Europe.
5. France
Skilled Labor Shortage: 80%
Ageing Population: 22%
France’s hydrogen industry faces a pressing need for tens of thousands of workers by 2030, expecting around 100,000 jobs. However, labor shortages and insufficient training hinder progress. In 2022, the sector had 6,800 positions, up 77% from 2019. France, like other European countries, wrestles with workforce shortages, hampering the sector’s development.
4. Ireland
Skilled Labor Shortage: 81%
Ageing Population: 15%
Ireland is currently fighting with a significant labor shortage crisis, as highlighted by an investigation conducted by the Irish Sun. Across its ten crucial industries, there are an estimated 100,000 vacancies, with the construction, hospitality, and healthcare sectors experiencing the most acute shortages.
To alleviate this shortfall, Ireland is welcoming 40,000 non-EU workers each year. The government has streamlined the process for issuing non-EU visas for skilled workers, issuing 39,955 such visas last year. Ireland is also one of the best countries to live and work in 2024.
3. Portugal
Skilled Labor Shortage: 81%
Ageing Population: 23%
Portugal is currently facing a huge labor shortage, with over 58,000 job vacancies persisting for more than 100 days across eight key sectors, as reported by Eurostat. This shortage is particularly acute in industries such as information technology, healthcare, hospitality, construction, agriculture, and renewable energy.
To address this challenge, Portugal launched the “Working in Portugal” program last year, aimed at attracting foreign workers to fill these crucial roles. Salaries in high-demand sectors like IT, business support, healthcare, and construction are quite competitive, presenting lucrative opportunities for skilled professionals. Notably, the Center region of Portugal is witnessing an increase in job openings, spanning from machine operators to positions in healthcare, transportation, and civil construction.
2. Germany
Skilled Labor Shortage: 82%
Ageing Population: 22%
Even amidst Germany’s economic stagnation, half of its companies are grappling with labor shortages, according to the DIHK Chamber of Commerce and Industry. The shortage of skilled labor persists as a critical issue, with 50% of surveyed firms reporting difficulty in filling vacancies, though there has been a slight decrease since January. Around 1.8 million positions remain unfilled, with a potential loss of over 90 billion euros in added value, which is more than 2% of the GDP. Industries such as construction and manufacturing are particularly affected, with 54% and 53% of companies respectively facing labor challenges.
Germany is one of the highest paying countries for data scientists.
1. Greece
Skilled Labor Shortage: 82%
Ageing Population: 23%
The Greek government has recently approved a bill to legalize the documentation of approximately 30,000 undocumented migrants, responding to a pressing labor shortage across several sectors of the economy. This decision is a direct response to the huge departure of workers due to the Covid-19 pandemic, notably affecting industries such as agriculture, tourism, and construction. While opponents express concerns about potential risks and the possibility of encouraging more illegal migration, proponents argue that the legislation will facilitate the integration of migrants into the labor force, generate increased public revenue, and alleviate the current shortage of workers. Greece is the country with the highest labor shortages in Europe.
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