Today, the Commission has presented an action plan to tackle labour and skills shortages and proposes to work together with Member States and social partners to address these issues over the coming months and years.
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The action plan is part of the EU’s strategy to boost its competitiveness and enhance its economic and social resilience.
For almost a decade, labour and skills shortages have been increasing in all Member States. These shortages are driven by demographic shifts, the demand for new skills linked to technological developments and the twin transitions, the drive to develop further our own industrial sectors, defence and security needs, and challenges related to working conditions in some sectors and locations. The Commission has identified 42 ‘shortage’ occupations, with some differences across the Member States.
The action plan is also a key deliverable of the European Year of Skills. It builds on the many policy and funding measures already in place at EU level, such as the Pact for Skills – which has so far provided training to 3.5 million workers –, the 2030 employment and skills targets endorsed at the Porto Social Summit, the adequate minimum wages and platform work directives, and the €65 billion in EU funds available to invest in skills.
The action plan is a follow up to the Val Duchesse Social Partners Summit of January 2024 and has been drafted in consultation with European social partners, whose role is crucial to implement solutions to address these challenges. The plan sets out actions in five areas to be implemented swiftly at the EU, national, and social-partners’ level:
Addressing labour and skills shortages is crucial to boosting sustainable economic growth in the EU, seize the opportunities of the green and digital transitions, foster the creation of quality jobs, increase our economic and social resilience in the face of geopolitical shifts, and ensure sufficient funding for employment and social policies in the EU.
The Commission will:
Member States are invited to:
Social partners intend to:
The Commission will monitor progress in implementing this action plan in the framework of the European Semester. In addition, the Commission will invite Member States in the Employment Committee and the Social Protection Committee to have regular tripartite exchanges on this issue, with the participation of European and national social partners.
Labour and skills shortages are expected to continue rising over the coming decades, predominantly thanks to demographic change and the increase in the demand for workers with specific skills, for instance required for the digital and green transitions. Nearly two thirds (63%) of small and medium-sized businesses said in a recent Eurobarometer survey that they cannot find the talent they need. By 2030, 3.5 million new jobs are expected to be created in renewable energy sectors alone. In addition, the Commission identified 42 occupations that it considers as EU-wide shortage occupations. At the same time, 21% of people aged 20-64 in the EU are currently inactive and require targeted assistance to enter the labour market.
Investment in people’s skills helps to tackle labour shortages, master the green and digital transitions, and ensure Europe’s future competitiveness. In this light, 2024 is marked as the European Year of Skills, an initiative that aims to help people to get the right skills for quality jobs and support companies in addressing skills shortages in the EU.
The action plan on skills and labour shortages is a concrete next step which contributes to this aim. It was announced at the Val Duchesse Social Partners Summit, convened by President von der Leyen and the Belgian Presidency of the Council of the EU, on 31 January, following its announcement in the 2023 SOTEU address. The plan builds on various initiatives already in place at EU and Member States level, as well as by social partners who have been consulted on the plan. It furthermore builds on initiatives of the European Pillar of Social Rights Action Plan, policy guidance in the framework of the European Semester and EU funding support. Implementing this action plan is crucial for achieving the 2030 EU headline targets on skills and employment, aiming for 78% of employment and 60% adult participation in yearly training.
The EU is investing around €65 billion in skills programmes, notably via the Recovery and Resilience Facility (RRF) and European Social Fund Plus (ESF+).
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