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Europe’s job market is sending mixed signals. On one hand, employment rates are rising and the post-pandemic economy is recovering. On the other, many sectors are desperately short of workers—while others are overflowing with talent that has nowhere to go.

The latest report from the European Labour Authority (based on the 7th edition of the EURES report) paints a complex picture of Europe’s labour market. It’s a continent where welders are hard to find, but administrative assistants are too many. And it’s a challenge that isn’t going away anytime soon.

Labour Shortages—But Not Everywhere

At first glance, Europe’s job market looks healthy. Employment is up, and the COVID-19 crisis feels like a thing of the past—at least on paper.

But dig deeper, and you’ll find a serious imbalance between supply and demand. Several factors are at play: an ageing population, rapid technological change, the transition to a digital and green economy, and a lack of interest among young people in physically demanding or low-status jobs.

The professions facing the biggest shortages today include welders, cooks, healthcare workers, and electricians. What do they have in common? High physical demands, the need for technical skills—and fewer young people willing to take them on.

In contrast, Europe is seeing an oversupply of workers in administrative and office jobs—sectors most affected by automation and AI. In short: if a job can be done by an algorithm, it’s less likely to still need a human. And yet, many people still train or apply for those jobs, deepening the mismatch.

Women and Youth Left Out of In-Demand Jobs

Social and cultural norms play a huge role in these trends. Just 29% of workers in shortage occupations are women.

Why so few? Many of the in-demand roles—construction, logistics, industry—are traditionally seen as “men’s work.” Even though more initiatives are trying to break gender barriers, the numbers speak for themselves.

The opposite trend appears in oversaturated jobs: 62% of admin and clerical workers are women. These are the very sectors being automated. Stereotypical career choices are having real economic and social consequences.

Youth are also largely absent from shortage professions. Despite many employment programmes targeting them, young people aren’t filling the gaps. This is alarming—because as older workers retire, there’s no one to replace them. Europe may soon face a generational gap on the job market, harder to fix than today’s shortages.

Transport and Logistics in Crisis

The report pays special attention to transport and warehousing, where staff shortages are becoming critical. Truck drivers are disappearing—even as demand for deliveries grows.

The reasons are clear: young people aren’t signing up, and the working conditions are tough. Long hours on the road, limited time with family, and safety concerns are all major turn-offs.

What’s more, widespread use of undeclared work and fake self-employment in the sector undermines job security and the industry’s reputation.

This isn’t just a demographic issue—it’s a consequence of deeper structural and social neglect.

Europe’s Digital Skills Gap

Looking ahead, digital skills will make or break Europe’s workforce. And the current numbers are worrying: only 5.6% of adults in the EU have basic digital skills.

That means the majority of adults can’t comfortably handle tasks like data analysis, coding, or working with automated systems—skills that are quickly becoming essential.

Without strong, accessible lifelong learning systems, Europe risks falling behind in the global race for innovation. The digital divide doesn’t just limit job prospects—it increases the risk of social exclusion, especially for older people, those in rural areas, and individuals with lower education levels.

The way forward: education and mobility

The report is clear: the solution lies in investing in education, training, and labour mobility. Initiatives like the Pact for Skills aim to modernise learning systems and expand adult training.

There’s also growing emphasis on STEM education (science, technology, engineering, mathematics), especially for women and young people. This is key to bridging the skills gap and reducing social inequality in the job market.

Europe stands at a turning point: either reinforce the inequalities of today—or build a labour market fit for tomorrow: more inclusive, more dynamic, and better suited to the realities of the digital age.

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