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The labor shortage, which hit the United States as soon as the country began to recover from the pandemic, also threatens Europe, where it can be even more difficult to cope with.
As in the US, where job growth in April was well below expectations, it will be difficult for Europe to match jobs and employment. And this despite the fact that the unemployment rate in the European Union is higher than 7%, and in Greece and Spain it is double, and it is projected that it will not return to pre-crisis levels until 2023.
In the short term, travel restrictions imposed by the coronavirus mean that workers from the 27-nation bloc can no longer cross borders as easily as they used to. This is a problem, as the EU will soon start to distribute its € 800 billion recovery fund, which focuses on the environmental and digital industries, and they will need specialists.
However, the networks that provided new staff have also been disrupted, and this will have a long-term impact. Job fairs were canceled and vocational training programs were suspended. Universities have seen a decrease in the number of foreign students.
Brexit has raised an additional barrier to labor mobility, as the UK-EU trade deal, which came into effect this year, includes movement restrictions and only limited mutual recognition of some qualifications.
“In Europe, the problems are more structural,” said Axel Pluennecke, an economist at the German Institute for Economics in Cologne. – Especially in technical professions like digitization, decarbonization, there will be a great demand for skilled workers. And I really don’t know if she will be satisfied. “
The region is already feeling the effects of the border closures introduced during the pandemic. Net migration to Germany, Europe’s largest economy, 2020 decreased by about a third. Norway lacks specialized hospitality staff such as rafting guides, and personnel entry restrictions were eased last month “to avoid downtime on projects or businesses for the next four months.”
Swedish battery maker Northvolt AB needs 3,000 employees to work at the plant under construction in Sheffield, and its CEO, former Tesla Inc. head Peter Carlsson, has repeatedly highlighted access to expertise as a key challenge.
The December EU report identified a shortage of construction, engineering, software and, more than ever, healthcare workers.
Vocational schools have also been affected by the rules of closure and social exclusion. Enrollment in German vocational training programs, which prepare young people for hundreds of specialized professions, fell by more than 9 percent last year. on the “obvious impact of a pandemic,” the country’s statistical office said.
In Austria, where a similar system was developed, there were more than 8,000 apprenticeships vacant at the end of April. The Austrian Chamber of Commerce has started using virtual reality goggles, which, according to Deputy Secretary-General Mariana Kuehnel, are helping young people take an interest in lesser-known career opportunities.
Last year almost 30% of German students studied. fewer foreign students and many continued their studies remotely from their home country. This has eliminated social interactions, which often persuade students to stay in the country after graduation.
“The challenge for companies and states is to synchronize job disruption with job creation,” said Alain Dehaze, director of Adecco Group AG, a global employment agency based in Switzerland. “We will follow the structural changes in mobility and consumption, and this will affect employment.”
The demographic dilemma
Some economies may even benefit if their best workers remain in their home country as a result of the crisis. Poland, Romania and Italy are the main countries of origin for EU skilled workers in 2019. – they are also one of the main beneficiaries of the Block Reconstruction Fund. There will be a notable increase in the demand for specialists.
Eventually, systems will be restored to find skilled workers to work in companies that need them. However, this will take time and the delay will only exacerbate the problem that Europe was struggling with before the pandemic, demographics.
For example, the number of German workers is projected to increase by 2030. It will decline by about 4 million as the baby boomer generation retires by then.
“German companies will have to seek more and more workers outside the EU to meet the need for a skilled workforce,” said Ulrich Kober, director of integration and education at the Bertelsmann Stiftung. “Migration from other EU countries is no longer satisfactory.”
This poses a political challenge to governments. Despite high local unemployment, they may be under pressure to invite workers from abroad, the Brussels-based Institute for European Migration Policy wrote in a February report.
“Governments will need to carefully consider the possibility of hiring foreign workers,” the report said.
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