Is the EU Jobs Crisis Due to a Lack of Skills Among applicants?

From Dan Georgescu, Skills Provision Europe

I recently came across an article from a reputable news outlet discussing a purported job crisis in the EU, attributing it to a deficiency in candidates' skills. Having been active in the EU job market for over seven years and engaging with both employers and candidates, I was surprised by such a claim and decided to investigate further.

As a starting point, I conducted a random search for EU candidates applying for jobs within the EU. Utilising major job boards like Indeed and Jooble, as well as newer platforms such as Jobs to Work, I found that for each EU job offer, there were at least five interested candidates who appeared to be qualified and experienced. This raises the question: why are EU employers, as reported by euronews.com, expressing dissatisfaction?

The article highlights the Netherlands and Belgium as countries particularly affected by this issue. To gain a comprehensive understanding, let's explore what these countries have to offer.

One notable observation is that the majority of job offers originate from staffing agencies rather than direct employers. Staffing agencies typically operate with different incentives compared to direct employers, often leading to lower pay rates and inferior working conditions despite demanding high qualifications. This discrepancy arises because:

Staffing agencies determine pay rates and working conditions to minimise expenses, including additional benefits such as personal protective equipment and training.

The high requirements for qualifications stem from the end employer, who is willing to pay premium rates for skilled personnel.

Consider, for instance, a basic Warehouse Operative position in the Netherlands:

A typical offer may present a gross salary of 2317 EUR/month, roughly equivalent to 14 EUR/hour gross or approximately 12.8 EUR/hour net.

Comparatively, direct employers are reported to offer an average pay rate of around 18 EUR gross per hour.

This disparity, amounting to at least 4 EUR per hour, underscores the preference of direct employers in these countries to engage staffing agencies for their workforce needs, contributing to a shortage of qualified personnel across various sectors. The logic is straightforward: skilled personnel cannot be obtained at minimum wage, resulting in a reliance on lower-skilled or unqualified workers.

I propose that direct employers consider recruiting their own employees to experience the benefits first hand. They may utilise reputable recruitment agencies such as Skills Provision, known worldwide for their expertise in sourcing skilled professionals."