Better wages, key to combat labor shortages in Europe

One of the keys to combating labor shortages in Europe is offering better wages, according to a study published Tuesday by the European Trade Union Confederation (ETUC) at its congress in Berlin.

Through a comparative analysis between job vacancies and salaries in 22 EU countries, the study shows that the sectors that have the most problems finding staff pay on average 9% less than those who find it easier to hire labour.

The study comes after last year the vacancy rate reached in the EU record levels causing production problems in 25% of companies.

Although this has usually been attributed to a lack of qualified personnel for some positions, the new analysis, carried out by the European Trade Union Institute (ETUI)indicates that low wages are one of the main factors explaining labor shortages.

In 13 of the 22 EU member states for which data is available, the sectors where labor shortages grew the most between 2019 and 2022 also offered the lowest wages.

“A decent wage is good for workers, good for employers and good for Europe. Low wages are fueling the cost-of-living crisis, while labor shortages are hurting Europe’s economic performance and public servicessaid the Secretary General of CES, Esther Lynch.

“Europe needs to be a great place to work. Already in the 1980s, Jacques Delors promised the workers of Europe the right to permanent training. The time has come to deliver on that key promise for social Europe”, he added.

The German Chancellor, Olaf Schölzgave a speech before the congress in which he highlighted the task that the unions have accomplished and the need for everyone to be able to live from their work.

In that sense, scholz He said that the minimum wage directive had been a step in the right direction, but it can only be a first step.

“If we have to talk about the minimum wage, it is because something is wrong because low wages are the result of the fact that many workers are not bound by collective agreements. And the link to them is on the decline in Europe. The goal should be to increase it“, said scholz.

Source: EFE