HCM 4012 Assignment Shortages in the Workforce
HCM 4012 Assignment Shortages in the Workforce
As identified in a recent study commissioned by the European Commission (DG Employment, Social Affairs and
Inclusion), there are several important challenges affecting Europe‘s future labour market, including an
ageing society requiring more effective use of the labour force; rapid technological changes and development;
increasing demand for highly skilled labour; and uncertainty about future growth in European economies.1
In this
respect, it is essential to identify and address labour market shortages, which could affect growth through their
adverse effects on labour productivity.
While to a certain extent, skills mismatches will always exist as a part of the frictional dynamics of the labour
market (i.e. cyclical labour shortages), persistent or structural shortages can be detrimental to economic
recovery and growth. Some structural changes, such as the adoption of new technologies, may increase the
demand for certain skills that are not immediately available in the labour market, creating skills shortages even
when unemployment is high. In this respect, one of the main challenges faced by policy makers is identifying real,
structural labour shortages, which cannot be met by the local labour force even if the labour market is functioning
well or measures are taken to improve it, e.g. by supporting labour matching or by increasing the attractiveness of
the work in light of scarce labour supply.
While migration is not necessarily a panacea for the economic problems in Europe, it is seen as part of the
response to labour market policies and identified shortages. Labour and skills shortages are frequently cited by
policymakers and employers as amongst the main reasons for attracting foreign labour. The ability to attract
skills and talents and to recruit from abroad when necessary can help foster growth and innovation.
Access to information and analysis on the functioning of the labour market is crucial in order to develop relevant
policy measures. Examining and assessing the extent of labour shortages is key to developing a credible labour
migration policy. Mechanisms used for identifying current and future skills shortages and for anticipating the need
for migrant labour can include lists of shortage occupations, emp
The aim of this focused study is to provide an overview of the mechanisms in place in (Member) States to
determine labour shortages and to quantify the needs for labour migration. The study will also assess how the
impact of labour migration on national labour markets is monitored and what kind of instruments are used to that
end.
The study includes in its scope all skill and qualification levels of third-country nationals and is not limited to highly
skilled or skilled third-country nationals.
More specifically, the study aims to:
Provide an overview of national labour migration policy and recent public and policy debates on labour
migration;
Analyse whether there is a link between identified labour shortages and labour migration policy;
Provide an overview of mechanisms for identifying labour and skills shortages and for anticipating the need
for migrant labour, and ;
Examine how are the lists of shortage occupations defined and classified as well as whether Member States
make any distinctions between different types of shortages (e.g. current vs. longer-term shortages;
temporary vs. permanent shortages);
Explore the role of social partners and other stakeholders and whether there are any formal mechanisms to
consult/involve social partners in determining labour shortages and the anticipated need for migrant labour;
Compare across (Member) States how the impact of labour migration on shortage occupations is monitored;
Where available, provide statistical overview on the number of workers employed by selected occupations and
estimated unfilled vacancies of the top shortage occupations and occupations included in the shortage lists