Europe’s labour shortages – not all equal
Although reported labour shortages in the eurozone appear to be worsening, our analysis of the underlying dynamics shows a more nuanced picture. We think the shortages in manufacturing and services are more cyclical in nature and should ease faster, while those in construction appear more structural.
What you will learn:
- Severe labour shortages in manufacturing and services are occurring amid a strong cyclical rebound in demand, which we expect to revert to trend in line with forward-looking indicators.
- This is not the case for construction, where we expect demand to remain elevated.
- Both the manufacturing and services sectors can draw on untapped labour resources, as employment in each is still around 2% below pre-pandemic levels.
- Employment and vacancies in construction have already surpassed their previous peaks and scope for productivity gains is limited.
Tags:
Related Services

Post
European Retail City Index
Research Briefing Europe’s labour shortages – not all equal Which European City Centres Offer the Best Opportunities for Retailers?
Find Out More
Post
Motor vehicles, energy and the other parts of industry in the line of fire from USMCA tariffs
The potential damage to large swathes of industry in Mexico and Canada from blanket US tariffs could be devastating and significantly greater than the impact on GDP as a whole.
Find Out More