How the Rapid Evolution of Technology is Causing Skills Shortages Across the EU

The skills shortages observed throughout the European Union are attributed to the rapid technological advancements affecting both workers and companies. Esteemed labour economics scholar and Nobel laureate Christopher Pissarides recently conveyed this perspective in an interview with Euractiv.

Pissarides emphasized that the demand for skills is evolving at an unprecedented rate due to advanced technological tools infiltrating everyday work life. This has resulted in a growing disparity between the skills required by businesses and those available from workers, causing shortages in various industries.

He stressed that the impact of technological changes extends beyond high-skilled jobs to industrial roles. With governments investing in the green transition and seeking to bring industrial production back to the EU, there is a pressing need for workers with new skills in digital technologies and robotics.

Contrary to the common belief that robots are displacing human jobs, Pissarides argued that automation could create new opportunities for employment. He encouraged companies to invest in continuous training and reskilling programs to ensure that their employees are equipped to adapt to these changes.

In addressing the skills mismatch, Pissarides highlighted the importance of companies taking the lead in providing comprehensive training options for their employees. He emphasized that on-the-job training is particularly effective, and that the private sector should be proactive in offering such programs.

To facilitate the entry of more individuals into the labour force, Pissarides cautioned against the notion of cutting benefits as a means of motivation. Instead, he advocated for the removal of barriers and the promotion of flexible working arrangements, such as part-time work and reduced weekly hours, to accommodate different lifestyles and needs.

Regarding productivity levels across the EU, Pissarides underscored the need for a more inclusive approach that encompasses different working patterns. He expressed concerns over existing disparities in productivity among member states, emphasizing the potential of adopting new ways of working to foster growth and reduce overall debt levels.

Bringing attention to the conversation on immigration, Pissarides criticized the current narrative surrounding the perceived threats of migration, which he believes has led to an unfounded fear of immigrants. He urged for a shift towards a more positive and pragmatic approach, highlighting the contributions that immigrants can make to critical sectors such as construction and healthcare.

Overall, Pissarides’ insights shed light on the profound impact of rapid technological changes on the labour market in the EU, and the necessity for proactive measures to address the resulting skills shortages.

[Scholar: Christopher Pissarides]
[Published by Euractiv]