In this article, we will look at the 5 countries with the highest labor shortages In the worlds. We have also discussed the latest labor shortages in the US 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 The World.
5. Portugal
Skilled Labor Shortage: 81%
Ageing Population: 23%
According to Eurostat, Portugal is currently with a huge labor shortage, with a staggering 58,000 job vacancies lingering for over 100 days across eight crucial sectors. The pressing need for skilled workers is felt in different industries such as information technology, healthcare, hospitality, construction, agriculture, and renewable energy. In response to this challenge, Portugal initiated the “Working in Portugal” program last year, aimed at attracting a foreign workforce to fill these critical roles. Salaries in high-demand sectors such as IT, business support, healthcare, and construction are lucrative, with opportunities for specialized professionals. It is worth mentioning that the country’s Center region, in particular, is a hotspot for job openings, ranging from machine operators to roles in healthcare, transportation, and civil construction.
4. Israel
Skilled Labor Shortage: 82%
Ageing Population: 12%
Israel is facing significant labor shortages in its construction sector, prompting plans to bring in approximately 70,000 foreign workers from China, India, and other countries. This decision was followed by the Hamas attack on October 7, which led to the freeze of the construction sector. The current shortage arose as around 80,000 Palestinian construction workers were barred from entering Israel post-attack.
3. Germany
Skilled Labor Shortage: 82%
Ageing Population: 22%
Half of German companies are fighting with labor shortages, despite the country’s economic stagnation, as reported by the DIHK Chamber of Commerce and Industry. The skilled labor situation remains critical, with 50% of surveyed firms struggling to fill vacancies, a slight decrease from January. Approximately 1.8 million jobs remain unfilled, causing a potential loss of over 90 billion euros in added value, equivalent to more than 2% of GDP. Industries like construction and manufacturing are the hardest hit, with 54% and 53% of companies facing labor challenges.
2. Greece
Skilled Labor Shortage: 82%
Ageing Population: 23%
The Greek government has recently passed legislation to legalize the papers of around 30,000 unregistered migrants in an effort to address a severe labor shortage affecting various sectors of the economy. The decision aims to combat the impact of the exodus of workers prompted by the Covid-19 pandemic, particularly in agriculture, tourism, and construction. Critics argue that the bill is risky and could attract more illegal migrants, while supporters believe it will help integrate migrants into the workforce, boost public revenue, and address labor shortages.
1. Japan
Skilled Labor Shortage: 85%
Ageing Population: 30%
A recent survey revealed that 86% of municipalities in Japan are actively seeking additional foreign workers to address the challenges posed by the country’s ageing population and labour shortages. Different sectors like education, healthcare, and technology, are actively recruiting international talent to bridge these gaps. Japan is the country with the highest labor shortages in the world.
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