ETUC Resolution on labour market shortages: A Call for Quality Jobs for Cohesion and Inclusion
Adopted at the Executive Committee meeting of 04-05 March 2025
Labour shortages, although not currently generalised in all member countries, is a significant topic in European policy discussions. ETUC calls for a comprehensive response and calls on the new European Parliament and Commission to ensure a fair Europe that guarantees secure jobs, decent wages, quality public services, gender equality, and workers' rights, including occupational safety and health. Rather than the business-oriented policies on attracting "external talent", Europe needs targeted investments on skills developments, improvement of working conditions and investments for social cohesion. Collective bargaining and social dialogue are essential to achieve this, placing the onus to make workplaces more attractive on employers. ETUC is concerned that the current focus on competitiveness through cost reduction and deregulation in the EU’s agenda leans heavily toward corporate interests, paving the way for austerity policies that unfairly impact workers. With over 13 million people unemployed and labour shortages across key sectors — especially those facing green and digital transitions, as well as traditional sectors with poor conditions, like transport, construction, health and care — the EU must prioritise improving job quality to meet evolving demands and safeguard working conditions.
The stand presented by employers regarding labour shortages often focuses on demands for increased flexibility in the labour market, mobility, and addressing skills gaps. ETUC regrets to see that this narrative has influenced the vision of the newly appointed European Commission. While skill mismatches is a significant contributor, it is not the sole driver of labour market tightness.
ETUC specifically demands the following:
Improving working conditions and investment in quality jobs. Safe and secure jobs with decent conditions and pay are crucial for enhancing the attractiveness of employers, professions, and sectors. Precarious, undervalued, insecure, and unstable jobs cause the race to the bottom and contribute to gender inequalities. SMEs should not be exempt from complying with any labour obligations.
Strengthening collective bargaining to improve working conditions. Collective bargaining plays a vital role for guaranteeing fair wages, the effective implementation of the rights and protections of workers, stable employment, and safe and healthy workplaces. It must be reinforced through the effective implementation of the Minimum Wage Directive, and making full use of the national action plans to progressively reach 80% collective bargaining coverage, to better protect workers. The European Pillar of Social Rights should be fully implemented through new EU legislative measures which include binding minimum standards of protection for workers which can be improved at national level, without any possibility for downward deviations. To foster inclusive labour markets, access to social protection must be extended to all workers, while undeclared work should be systematically transformed into declared, formal employment. Also, through the adoption of a European Directive on public procurement, ensuring that public funds are allocated to companies that comply with social conditionalities, particularly with regard to labour legislation, collective agreements, and respect for representative trade unions.
Right to training. Training must be accessible to all workers, during working time and workers should not have to pay for it. Strengthening policies on skills development, life-long learning, and promoting education and training at all levels must be supported. Whereas such a right would establish a baseline of protections, training provision can also be enhanced through collective bargaining. While establishing a right to training is essential, skills strategies must be linked to quality job creation and retention strategies, as well as job-to-job transition schemes that enable workers to switch between quality jobs in the context of the twin transition. Initiatives focusing on training, reskilling, or upskilling will yield no benefits if workers reside in economically stagnant areas without viable alternative employment prospects. Demographic change requires skills strategies that support older workers' to continue participating in the labour market and provide young people with high-quality professional education. Younger and older workers often face discriminatory practices in accessing employment and training opportunities. Age discrimination must be addressed, workers should not be disadvantaged in or refused training opportunities based on discriminatory practices or biased selection systems.
Ensuring occupational health and safety with a preventive approach is integral to quality employment. It is essential to enact legislation to protect all workers – including domestic workers – from persistent risks, such as psychosocial hazards and harassment, and exposure to dangerous substances, as well as emerging ones, like extreme temperatures and UV radiation in the workplace.
Stronger enforcement of labour Directives is of paramount importance, along with support to enforcement authorities to have the authority and capacity to perform labour inspections and use legally binding sanctions.
Labour market transitions must be shaped so that no worker or region is left behind. Without investments and policies to improve access to quality jobs, training, job-to-job transition schemes, and essential services, particularly in rural, peripheral, and industrial transition regions, there is a clear risk of increasing inequalities within communities and between regions amid the significant efforts needed to manage the digital and green transitions successfully.
Addressing the gender dimension is essential to tackling inequalities in the labour market and increasing women participation in the labour market, as women are more susceptible to precarious conditions, low wages, and involuntary part-time work. Fostering gender-related employment policies and collective bargaining, ensuring equal access to quality jobs and pay transparency, encouraging the participation of more women in STEM occupations, supporting work-life balance measures and protecting women against violence at work are crucial steps toward achieving fair and inclusive labour markets. To close the gender pay gap, gender-neutral job evaluation tools should be used - preferably agreed upon by social partners through collective bargaining - that consider all aspects and required skills. This approach enables a fair comparison of tasks performed and wages paid. Implementing such tools could lead to significant salary increases in female-dominated sectors.
Investment in and access to public services and social protection. Regional attractiveness also depends on decent living standards, including access to affordable housing, education, childcare, public transport and high-quality public services. EU funding for publicly created employment, with strong social conditionalities, should be developed , in line with the ETUC's demand for a European Job Guarantee.
ETUC strongly opposes to the European Commission's proposal to extend older workers' participation in the labour market without considering their right to access quality retirement pensions. Recent developments, including in France and Belgium, demonstrate the profound social unrest and widespread protests led by trade unions that arise from attempts to raise the statutory retirement age and reduce pension benefits. Such measures threaten workers' rights and the economic stability of EU Member States. Any extension of work beyond retirement age should remain in any case exclusively voluntary, must only result in benefits for workers or pensioners by addressing the connection with good working conditions and work environment.
Public Employment Services should be strengthened, as they play a crucial role in implementing active labour market policies and integrating the most vulnerable groups of the society into the labour market. To address these challenges, the European Union and Member States should undertake effective active labour market policies and other specific measures with the full involvement of social partners. Workers with disabilities should be granted an effective right to reasonable accommodation, among other key measures to support their access to quality jobs. The youth dimension of the labour market must also be addressed to ensure access to quality jobs and training. ETUC advocates for a strengthened Youth Guarantee with quality criteria and a Directive mandating paid traineeships.
ETUC defends free movement as a fundamental right for workers. Fair and freely chosen labour mobility provides individuals with job opportunities and can drive social inclusion and upward convergence. However, the potential of labour mobility is limited in remedying labour and skills gaps in the long term, as specific occupation shortage is often consistent across all Member States. Labour should not be treated as a commodity that market forces can simply adjust.
Labour mobility cannot compensate for poor working conditions, inadequate training, or low pay, whether in countries of origin or destination. EU policies on labour mobility must contribute to fairness, supporting workers not only in enjoying their freedom of movement but also in enforcing their rights and reintegration into local labour markets in cases of return mobility. It should not serve as a quick fix for employers or an easy way out for regions struggling to offer prospects and opportunities for workers and their families. The EU should support local and regional governments and refrain from austerity measures. Enrico Letta’s report "Much More than a Market" also emphasised the "right to stay", underscoring the need to invest in quality jobs and services across EU regions.
In the same vein, equal treatment is crucial for ensuring fair and inclusive labour markets. Poor-quality jobs cannot be filled by foreign or undeclared workers merely to alleviate labour shortages and reduce labour costs. Such practices constitute a violation of rights - leading to labour crimes and severe exploitation of workers - and social dumping, thus perpetuating inequalities and depriving societies and economies of inclusive progress. Furthermore, shortages cannot justify reducing social security or welfare benefits below national and sectoral standards.
The European Labour Authority should enhance its mandate to improve the enforcement of labour mobility rules and increase cross-border inspections. ETUC also calls on the European institutions to enact a general legal framework for limiting subcontracting and ensuring joint and several liability throughout the chain.