The rise and fall of EU labour shortages: Recent developments and some forward-looking considerations

Uniunea Europeana

Labour shortages across the EU are back down to pre-pandemic levels and declining, but this easing of the labour market has not translated into higher unemployment. So far, leading indicators such as youth unemployment and long-term unemployment have remained stable. This column argues, however, that the declining hiring rate for those with weak labour market attachment may suggest that a turning point is within reach. The evolution of the labour market will depend on how new shocks will affect