A new warning over Europe’s labour shortage issued today by the World Economic Forum (WEF) shows why the European Commission must make it a priority to deliver a plan for quality jobs.
The Future of Jobs Report 2025 published by the business group says “skills gaps and talent shortages in the labour market remain a key barrier” to the success of European firms over the next five years. It found 54% of employers expect labour shortages to worsen - significantly above the global average - and the top priority of respondents was “funding for reskilling and upskilling.”
The green and digital transitions have made it even more important that employers work with trade unions through collective bargaining to anticipate and manage change and ensure workers receive the training they need, which is why the Commission should deliver a dedicated Just Transition Directive.
But research by the European Trade Union Institute has also found that shortages are driven by the poor quality of jobs, with the industries finding it hardest to recruit workers paying 9% less on average than those least affected by the labour shortage. President von der Leyen recognised this in her speech to the European Parliament in November, saying: “Productivity depends on good working conditions. On earning a fair wage. On a good work-life balance.”
Esther Lynch, General Secretary of the European Trade Union Confederation, said:
“While some bosses might be heading to Davos to lobby for more anti-worker policies, what the evidence from this report actually shows is that raising the quality of jobs in Europe is critical to the success of our economy."
“Raising job quality, increasing pay and promoting collective bargaining must be part of the plan for European competitiveness. It is essential to anticipate and manage change, to ensure that workers are fully trained in the skills that companies require and also that companies offer pay and conditions which allow them to attract and retain the workforce they need.
“Conversely, research shows how low-quality jobs have been key to creating and exacerbating labour shortages that are damaging our competitiveness, which is why it would be absurd to compromise labour standards in the name of competitiveness.
"The report identifies caring, farm work, delivery driving and construction as roles that will be in demand over the next five years, but all too often this exactly the kind of hard work is not properly compensated.
“Quality jobs are a win-win for workers and companies. That’s why I’m calling on the Commission to make quality jobs a cardinal point in the forthcoming Competitiveness Compass and to bring forward a comprehensive quality jobs package in the first half of this year.
“The Quality Jobs Package must include legislative initiatives, investments and action programmes needed to ensure high-quality jobs in every sector and every region – as called for by the ETUC in its letter on the upcoming Competitiveness Compass."
Notes
ETUC letter to President von der Leyen on the upcoming Competitiveness Compass
