Untangling Labour Shortages in Europe: Unmet Skill Demand or Bad Jobs?
Introduction
This study, based on the second wave of the Cedefop European skills and jobs survey (ESJS2), examines the drivers of labour shortages in European labour markets. It provides detailed information on the foundational, digital, manual, and interpersonal job-skill requirements at the job level, which is used to construct robust and comprehensive indices of the required skills profile of European jobs.
Section 1: Skill Demands and Shortages
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Drivers of Labour and Skill Shortages
- The study identifies various factors contributing to labour shortages, including skill demands, labour market immobility, worker skill gaps, and unattractive working conditions.
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Measuring Job-Skill Requirements
- The survey measures the skill requirements for different types of jobs, including:
- Foundation Skills: Basic competencies required for most jobs.
- Social Skills: Interpersonal and communication skills.
- Physical Skills: Manual and technical skills.
- Digital Skills: Information technology and digital competencies.
Section 2: Data and Descriptive Evidence
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Cedefop’s European Skills and Jobs Survey (ESJS2)
- The ESJS2 provides detailed data on job-skill requirements across various occupational groups.
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Profiling Job-Skill Requirements in EU+ Labour Markets
- The study profiles job-skill requirements by type:
- Foundation Skills: Validity of the scale is assessed using statistical methods.
- Social Skills: Validity of the scale is also evaluated.
- Physical Skills: Validity of the scale is assessed.
- Digital Skills: Validity of the scale is evaluated.
- Work Routinisation and Job Complexity:
- The study examines the routinization of work tasks and the complexity of jobs.
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Labour Shortages in European Labour Markets
- The study highlights sectors with high shares of paid adult workers in shortage occupations.
Section 3: Empirical Evidence: Drivers of Labour Shortages
- The empirical evidence explores the specific drivers behind labour shortages, including:
- Skill Demands: High skill demands versus other factors like labour market immobility and unattractive working conditions.
Section 4: Within-Occupation Variation in Skill Needs and Shortages
- The study investigates the variation in skill needs and shortages within individual occupations.
Section 5: Conclusions
- The study concludes that there is significant variance in the underlying determinants of labour shortages across occupations, highlighting the need for tailored policies rather than one-size-fits-all approaches.
Key Data Points
This comprehensive analysis provides insights into the complex factors driving labour shortages in Europe and highlights the need for targeted policy interventions.