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How can the EU respond to its skilled labour shortage?

How can the EU respond to its skilled labour shortage?

Euronews14-03-2025

To remain competitive, the European Union needs a skilled workforce. A shortage of this is therefore a problem, and the Commission and the European Parliament have recently renewed efforts to tackle it.
"Four in five businesses struggle to find the workers that they need with the right skill set. There are more than 40 occupations with EU wide shortages, especially in important sectors like construction, trades, transport and some healthcare professions", Roxana Mînzatu, European Commission Vice-President responsible for social rights, skills and quality employment, told the European Parliament in Strasbourg.
This shortage of skilled labour is due to problems of supply and demand and a mismatch between the qualifications of workers and the needs of employers, as Ilias Livanos, an expert on skills and the labour market at the European Centre for the Development of Vocational Training (Cedefop), told Euronews:
"There could be pressures because of the demand. And clearly for the ICT professions, given that they keep developing so rapidly, we don't really know what the demand will be in 5 or 10 years. So how we can prepare for this specific knowledge ? And clearly the systems, education systems are not prepared for this."
This shortage is likely to get worse because of demographic factors and the digital and ecological transitions.
"Firstly, demographics. The EU is going to lose 1 million workers every year until 2050," Peter Bosch, senior research associate at the Egmont Institute, told Euronews.
"Secondly, there is a rapid change in the type of skills that will be needed because of robotisation, because of artificial intelligence, because of what is happening in different sectors," he explained, adding:
"The third reason is Europe's economic recovery, with many Member States and the European Union making large amounts of money available."
The European rearmament plan proposed by the European Commission, which contains a €800 billion budget, and the massive investment plan in defence and infrastructure presented by the likely future German Chancellor Friedrich Merz will require recruitment in many sectors, according to Peter Bosch.
The education system, but also companies, have important roles to play here, as, after all: "The skill system has no single owner".
While the formal education system has an important part to play in developing skills, continuing training is also "the responsibility of individuals and employers," according to Livanos.
The EU's new roadmap has set the course: On 5 March, the European executive launched a new initiative - the Skills Union - to boost training and therefore European competitiveness.
This approach is based on four pillars. It recommends investing in education and training, promoting professional retraining, encouraging the mobility of students and workers, and making the EU more attractive to foreign workers.
In concrete terms, the Commission wants to launch "skills guarantees", for example, to "help companies hire or train people at risk of losing their jobs", Roxana Mînzatu expained.
Another flagship project called "Choose Europe" aims to attract skilled workers from third countries to the EU.
The European executive also wants to support visas for foreign students, strengthen the skills pact to support the upgrading and retraining of workers, and make the 'Erasmus+' exchange programme more accessible.
But the EU is not the only one in the race, warns Peter Bosch.
"The European Union is going to need people, but so will China and India and Arab countries, and Arab countries are offering huge salaries for people to come to work in their countries," says the researcher. The European Union is waking up, but it needs to do so very quickly.
The Trump administration has threatened to permanently end federal funding to Columbia University, unless the New York institution hands over control of one of its international studies departments.
The ultimatum comes a week after the US government announced that it was pulling $400m (€367m) in federal funding from the university — and reviewing $5bn (€4.6bn) in additional grants — over its perceived failure to root out antisemitism on campus.
In a letter sent by the federal authorities on Thursday night, Columbia was warned that talks on its financial future would only take place if it places its Middle Eastern, South Asian and African Studies Department under 'academic receivership for a minimum of five years'.
Before any 'formal negotiations' can be held, the Ivy League institution must also take other actions, including adopting 'a new definition of antisemitism' and reforming its admissions process, it added.
'We expect your immediate compliance with these critical next steps,' officials from the Department of Education, General Services Administration and Department of Health and Human Services wrote.
The development is a dramatic escalation in US President Donald Trump's attempts to reshape how universities across the country operate.
In recent weeks, the Trump administration has targeted Columbia over the pro-Palestinian student protests that took place there last year.
Over the weekend, Mahmoud Khalil, who graduated from the university in December with a Master's in international studies, was arrested in New York over his role as a student spokesperson during the protests. He is currently being held at a detention centre in Louisiana.
Khalil's lawyers argue that it is unconstitutional for the US government to deport activists, something Trump and his officials have vowed to do.
Responding to the government's actions against Columbia, Joseph Howley, a classics professor at the institution, said: 'Half of this stuff you can't just do and the other half is insane.'
'If the federal government can show up and demand a university department be shut down or restructured, then we don't have universities in this country,' he added.
On Thursday, Columbia announced that it had sanctioned students over the pro-Palestinian protests, which involved the occupation of Hamilton Hall last spring.
It said in a statement that punishments included 'multi-year suspensions, temporary degree revocations and expulsions'.
In a separate development, the Education Department said it was investigating more than 50 US universities over alleged racial discrimination.

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