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Please Mind the Gap: EU Unveils Plan to Tackle Labour and Skills Shortages

The World Employment Confederation-Europe welcomes the five priority areas of the European Commission’s Action Plan to address labour and skills shortages and highlights that the private employment services industry contributes to better labour market outcomes for all.

Published on 21st March 2024

Amid current megatrends in Europe linked to demographic ageing, technological change, and skills mismatches, the European Commission presented on March 20 an Action Plan to put Europe back on track.

“The World Employment Confederation-Europe welcomes the fact that the Action Plan recognises the role of effective cooperation between public and private employment services in tackling labour market shortages,” said Menno Bart, Executive Committee Member and Public Affairs Committee Chair.

The Action Plan on addressing labour and skills shortages puts a focus on five priority areas:

  • Supporting the activation of underrepresented groups in the labour markets
  • Providing support for skills, training and education
  • Improve working conditions
  • Improving intra-EU mobility of workers and learners
  • Attracting talent from outside the EU

The World Employment Confederation-Europe fully supports these five priorities and highlights the important role that the private employment services industry has provided in addressing labour and skills shortages.

Private employment services contribute to enhancing labour market participation, especially for young people, who are strongly represented among the agency workers. HR services value a skills-first approach and invest in up- and reskilling of workers based on company-based training schemes, bipartite training funds and apprenticeships. Additionally, working conditions in the HR services industry, particularly in agency work, are fully appropriate and fair, including the principle of equal treatment and equal pay based on the EU Directive on temporary agency work, national regulation and collective labour agreements to settle working conditions.

HR services play a role in enabling labour mobility, including intra-EU mobility and by attracting and integrating third-country nations. The HR services industry is committed to effective collaboration with public employment services, supports action on the better recognition of qualifications and is committed to tackling labour market segmentation by enabling labour market transitions. The World Employment Confederation-Europe has welcomed the EU Talent Pool proposal and calls for maintaining agency work and HR services fully within its scope. Also, the initiative on Talent Partnerships with third countries is welcomed.

The priorities and policies in the Action Plan are consistent with the policy recommendations the World Employment Confederation-Europe has put forward in its 2024 Manifesto, “The Europe We Want – Creating Futureproof Labour Markets That Work For All”. The WEC-Europe Manifesto focuses on addressing the current and future megatrends in the world of work and calls for a new social contract that protects all, skills policies to empower all in the labour market and fair and appropriate regulation in times of digitalisation.

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