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This is the third report in a series of annual reports which provide an analysis of shortage and, since 2016, surplus occupations as identified by the European [Public Employment Services] PES. Each report has a somewhat different focus. The focus of this report is to ultimately draw on the findings in the whole series and create a model which can accurately and comprehensively identify imbalances and cross-border matching possibilities in a manner which is of practical use to [European Employment Services] EURES and the national [vocational education and training] VET authorities in the [European Economic Area] EEA countries. Facilitating the matching of skills and jobs across borders in the EU contributes to the better functioning of labour markets in the EU, as pursued by the EURES network. Supporting the identification of skills shortages and the better matching of skills of job-seekers with the needs of employers is also among the objectives of the European Network of Public Employment Services (PES Network). A total of thirty-three PES were asked to submit data on shortage and surplus occupations. These PES included the national PES from twenty-seven EU Member States and the three regional PES from Belgium. As in the case of the studies in 2015 and 2016, the national PES of Iceland, and Norway were also requested to submit data, while the national PES of Switzerland was included for the first time in 2017. Based on the findings from the three bottleneck studies undertaken to date, a model for the gathering of data on shortages and surpluses is proposed.

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Supporting the rapid growth in the ageing population is one of EU's greatest challenges, placing the care sector high on policy agendas. Demographic change, technological advancements and poor working conditions exercise pressure on care workers' employment and skills. This policy brief discusses developments in the employment and skills of care sector workers, and the role that vocational education and training (VET) can play in support, building on Cedefop's skills forecast and online job advertisement analysis.

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According to Eurostat forecasts, the European Union's working age population will shrink by a considerable eight million people by 2025. As a consequence the labour force is to decrease, adversely affecting future [gross domestic product] GDP growth rates. However, there are groups of people whose labour potential is not yet fully utilised, meaning that the decrease in size of the future workforce can be avoided. Employment gains due to their entry into the labour market can rebalance total employment. An increase in labour force participation rates among women is one of the most important potential improvements. In this policy brief, [the authors] summarise the results of six Neujobs working papers. These address the most important issues related to women's employment decisions, such as education, maternity, retirement, life-long learning, care choices, flexible employment contracts and salaries. [The authors] identify several pathways to increased labour market activity among women and obstacles to overcome. Relevant policy recommendations are made for each issue.

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This annual report on skill shortages and surpluses in Europe covers the period 2019-2020, during which the European labour market was strongly impacted by the [Coronavirus Disease 2019] COVID-19 pandemic. It includes a preliminary analyses of the impact of that pandemic on skill shortages. The findings give rise to an important recommendation in this report. There is an urgent need to comprehensively inform job-seekers of the skills and knowledge which are associated with both good, and poor employment prospects. The findings of this study provide evidence that some graduates are pursuing disciplines (sociology, journalism) where there is intense competition for jobs, that not enough suitably qualified young people are pursuing apprenticeships in engineering or construction, and that many female workers are vulnerable to becoming unemployed.

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In the light of the importance of skills for the EU economy and the European Year of Skills, the 2023 annual Employment and Social Developments in Europe (ESDE) review provides evidence on persistent labour shortages and changing skills needs in the EU. The report considers the implications of skills demands in the context of the green and digital transitions. It highlights certain labour market participation challenges, including demographic changes (notably ageing) and lower labour market participation among certain population groups, with a particular focus on women and migrant workers born outside the EU.

The analysis shows that labour shortages are found in a diverse range of occupations across all skill levels: construction, healthcare, science, ICT, engineering and mathematics (STEM). The importance of the structural drivers, underlying shortages, vary by occupation and sector. Overall, the working conditions or human resource management (HRM) practices are more often linked to employers' difficulties in finding people, rather than a lack of skills among job applicants. Still, a limited supply of skilled workers poses challenges in certain fields (e.g. STEM, healthcare).

The report highlights the importance of policies and reform measures to alleviate persistent labour shortages. Those include investing in training and adult learning, increasing financial incentives to work, alleviating the barriers to people entering the labour market, improving work and pay conditions and social protection coverage, and implementing policies to attract workers from abroad into jobs facing shortages.

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