On Thursday 6 July, the European Commission published its 2023 report on employment and social developments in Europe (ESDE), in which it notes persistent labour shortages and the under-representation of women and people with disabilities in the labour market, despite some improvements.
By 2022, the employment gap between men and women (aged 20-64 years) will have narrowed slightly, with the employment rate for women reaching 69.3%, compared to 80% for men.
The report generally observes that “despite the impact of Russia’s invasion of Ukraine, EU labour markets have shown remarkable resilience”. The EU economy grew by 3.5% in real terms in 2022 and the employment rate rose to a record level (74.6%). The unemployment rate stood at a historically low level of 6.2%.
Youth unemployment also fell, from 16.7% in 2021 to 14.5% in 2022, but remains a major problem, notes the Commission.
The report also points out that inflationary pressures in the economy have increased the financial distress of low-income households.
“Overall, the financial difficulties reported by households have risen from 12.5% in December 2021 to 15.8% in December 2022. The proportion of adults who say they will have to dip into their savings to meet everyday needs has also risen, from 9.1% in December 2021 to 11.8% in December 2022. Levels of financial distress among low-income households were similar to those recorded in the aftermath of the financial crisis”.
While the proportion of people at risk of social exclusion has remained stable compared to 2021, the Commission nevertheless recommends increased vigilance with regard to this risk of poverty.
As far as labour shortages are concerned, the report notes that they affect all skill levels and that “this phenomenon is likely to increase ”. Sectors such as construction, healthcare and STEM (science, technology, engineering and mathematics) or ICT (information and communication technologies) were the hardest hit in 2022.
For some professions, such as doctors, nurses, carers or vehicle drivers, this was partly due to poor working conditions.
In addition, most of the shortage occupations are male-dominated or female-dominated: 86% of occupations affected by labour shortages are marked by a gender imbalance.
The Commission therefore recommends investing in adult education and improving the match between jobs and skills, or developing sufficient and accessible early childhood education and care services to free up women.
It also involves improving working conditions and pay in certain jobs and improving financial incentives to work, by modifying tax and benefit systems for people on low incomes.
Link to the report: https://aeur.eu/f/7yl (Original version in French by Solenn Paulic)