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The Latest Labor Shortage Trends & Statistics (2024)

by Fabio Duarte
March 4, 2024

With labor shortages on the rise, employers are understandably concerned.

Yet some industries are suffering more than others.

Below, we’ll dive into the latest data surrounding global labor shortages and other relevant statistics:

Contents

Top Labor Shortage Statistics 2024 (Editor’s Picks)

  • 77% of employers are not able to fill job vacancies
  • The US has a labor shortage of 75%
  • IT & data skills are most in demand 27%
  • The US has a labor force participation of 62.2%
  • Bricklaying is the most in-demand profession in Europe (19 countries)

Current Labor Shortage Stats

According to ManpowerGroup, almost 4 in 5 (77%) employers are struggling to fill job vacancies – that’s the highest figure on record since surveys began in 2006.

In fact, the number of employers reporting labor shortages has more than doubled since 2015 (38%).

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Here’s a look at global labor shortage figures over the last decade:

Year Global Labor Shortage Change Over Previous Recorded Year
2013 35% -
2014 36% +1%
2015 38% +2%
2016 50% +12%
2017 - -
2018 45% -5%
2019 54% +9%
2020 - -
2021 69% +15%
2022 75% +6%
2023 77% +2%

Source: ManpowerGroup

US Labor Shortage Rates

In the US, talent scarcity is on the rise.

As of 2023, US labor shortage currently sits at 75%, just under the global average.

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That means that 3 in 4 employers are unable to find suitable employees for their job vacancies.

Source: ManpowerGroup

Labor Shortage Rates by Country

Taiwan has the highest recorded labor shortage rate at 90%. That’s 13% higher than the global average.

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On the other end of the scale, Colombia has a labor shortage rate of 64% - 13% lower than the worldwide rate.

Here’s a breakdown of labor shortages for selected countries across the world:

Country/Territory Region Labor Shortage
Global Average - 77%
Taiwan Asia 90%
Germany Europe 86%
Hong Kong Asia 85%
Portugal Europe 84%
Puerto Rico North America 83%
Singapore Asia 83%
Hungary Europe 82%
Austria Europe 81%
China Asia 81%
Finland Europe 81%
Ireland Europe 81%
Romania Europe 81%
Belgium Europe 80%
Brazil South America 80%
France Europe 80%
India Asia 80%
Spain Europe 80%
UK Europe 80%
Australia Oceania 79%
Canada North America 79%
Argentina South America 78%
Japan Asia 78%
Greece Europe 77%
Sweden Europe 77%
Israel Asia 76%
South Africa Africa 76%
Switzerland Europe 76%
Italy Europe 75%
US North America 75%
Norway Europe 74%
Netherlands Europe 73%
Guatemala North America 72%
Poland Europe 72%
Turkey Europe/Asia 72%
Costa Rica North America 71%
Peru South America 70%
Mexico North America 69%
Slovakia Europe 68%
Czechia Europe 66%
Panama North America 65%
Colombia South America 64%

By 2030, it is predicted that there will be a global talent shortage of around 85 million people, resulting in revenue losses of approximately $8.5 trillion.

Source: Korn Ferry

Global Labor Shortage Stats

IT and data technical skills are the most in demand. In total, 27% of employers are searching for talent with these technical skills.

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Here are the top five most in-demand technical skills:

Rank Skill Demand
1 IT & Data 27%
2 Engineering 22%
3 Sales & Marketing 20%
4 Operations & Logistics 19%
5 Customer Facing & Front Office 17%

In terms of soft skills, reliability, and self-discipline are the most sought-after (29%).

These are the most in-demand soft skills right now:

Rank Skill Demand
1 Reliability & Self-Discipline 29%
=2 Creativity & Originality 26%
=2 Critical Thinking & Analysis 26%
=2 Reasoning & Problem-Solving 26%
=2 Resilience & Adaptability 26%

As a means to address the skills gap, employers are more willing than ever to invest in their existing talent.

The most common approach to bridging the skills gap is upskilling and reskilling the current workforce (71%).

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Here are the ways in which employers are combatting the skills gap:

Rank Strategy Proportion Implementing
1 Upskilling & reskilling their current workforce 71%
2 Plan on filling new, permanent roles 51%
3 Report investing in more tech to augment processes 43%
4 Will bring in more contract or temporary roles 37%
5 Have no plans for any of the above 4%

Over half (57%) of employers are now offering more flexibility at work when it comes to where (location, hybrid, remote) and when (part-time, flexible hours).

Increasing wages - especially within the IT industry (37%) - is the second-most common approach (33%). This is alongside looking at new talent pools (mature workers, etc.), which is also being explored by 33% of employers.

Here’s a breakdown of how organizations are overcoming talent shortages:

Rank Solution Proportion Implementing
1 Offering more flexibility about when* and where** 57%
=2 Increasing wages, especially within the IT industry (37%) 33%
=2 Looking at new talent pools (mature workers, etc.) 33%
4 Offering joining bonuses 26%
5 Prioritizing automation for selected/tasks processes 24%
6 Reducing qualification requirements 18%

Source: ManpowerGroup

US Labor Shortage Stats

The US has lost as many as 1.4 million workers from the labor force since February 2020.

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Labor Force Participation Rate 2001-2023 (US Chamber of Commerce Analysis, BLS Data)

In 2022, the US had a labor force participation of 62.2%.

Here’s how that figure compares to the top 10 countries for labor force participation:

Rank Country Labor Force Participation
1 Qatar 88.29%
2 Madagascar 85.9%
3 Solomon Islands 83.64%
4 Tanzania 82.6%
5 UAE 82.21%
6 Ethiopia 80.58%
7 Burundi 79.73%
8 Mozambique 78.48%
9 Eritrea 77.6%
10 Angola 76.87%
- US 62.2%

Sources: US Chamber of Commerce, Statista

UK Labor Shortage Stats

In recent times, the number of UK businesses experiencing a labor force shortage has remained between 11.5% and 15.7%.

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Here’s a breakdown of the figures according to the UK Office for National Statistics:

Date Businesses Experiencing a Shortage (%)
Oct 31, 2021 13.5%
Nov 28, 2021 14.2%
Dec 26, 2021 14.3%
Jan 23, 2022 12.2%
Feb 6, 2022 13%
Feb 20, 2022 11.7%
Mar 6, 2022 12.5%
Mar 20, 2022 12.6%
Apr 17, 2022 13.9%
May 15, 2022 12.5%
Jun 12, 2022 14.1%
Jul 24, 2022 14.8%
Aug 7, 2022 13.7%
Aug 21, 2022 15%
Sep 4, 2022 15.7%
Oct 2, 2022 14.9%
Nov 27, 2022 12.8%
Dec 27, 2022 11.5%
Jan 8, 2023 11.5%

Across all industries, 11.5% of businesses are experiencing a labor shortage in the UK.

Accommodation and food service companies are the worst affected. Over 1 in 4 (25.3%) of them are short on workers.

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Here’s a breakdown of UK labor shortage by industry:

Rank Industry Shortage of Workers
- All industries 11.5%
1 Accommodation and food service activities 25.3%
2 Manufacturing 17.4%
3 Human health and social work activities 15.1%
4 Transportation and storage 14.5%
5 Wholesale and retail trade; repair of motor vehicles 14%
6 Construction 12.4%
7 Administrative and support service activities 11.9%
8 Education 10.7%
9 Arts, entertainment, and recreation 10.4%
10 Professional, scientific, and technical activities 7.2%
11 Other service activities 1.7%
12 Information and communication 1.1%

Source: ONS, ONS (2)

European Labor Shortage Stats

Labor shortages across Europe vary considerably from country to country.

Switzerland has a total of 240 occupations with labor shortages, comfortably more than second-placed neighbours Italy (204).

At the other end of the scale, Greece has just 6 occupations experiencing a labor shortage.

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Source: Analysis of data submitted by EURES National Coordination Offices

Here’s a list of 29 European nations ranked by number of occupations experiencing labor shortages:

Rank Country Number of Shortage Occupations
1 Switzerland 240
2 Italy 205
3 Netherlands 166
4 Belgium 164
5 Norway 128
6 Slovenia 107
7 Denmark 106
8 Estonia 97
9 France 77
10 Finland 60
11 Hungary 52
12 Romania 50
13 Poland 45
=14 Croatia 40
=14 Latvia 40
16 Lithuania 38
17 Austria 34
18 Portugal 32
19 Slovakia 32
20 Sweden 31
21 Germany 30
22 Ireland 24
23 Spain 23
24 Cyprus 21
25 Luxembourg 20
=26 Bulgaria 16
=26 Malta 16
28 Czechia 12
29 Greece 6

Bricklayers and related industries are experiencing labor shortages in more European countries than any other sector (19).

In total, 78% of surveyed countries reported a severe shortage of roofers. This was closely followed by psychologists (75%) and heavy truck drivers (73%).

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Here’s a list of shortage occupations and the degree of severity in Europe (2022):

Occupation Countries Reporting Occupation as a Shortage Countries with Severe Shortage
Bricklayers and related workers 19 57%
Carpenters and joiners 18 38%
Heavy truck drivers 18 73%
Metal working machine tool setters and operators 18 50%
Nursing professionals 18 54%
Plumbers and pipe fitters 18 38%
Building and related electricians 18 40%
Welders and flame cutters 17 54%
Concrete placers, concrete finishers, and related workers 17 62%
Sheet metal workers 16 44%
Floor layers and tile setters 16 36%
Software developers 15 58%
Cooks 15 55%
Building construction laborers 15 38%
Electrical mechanics and fitters 15 22%
Application programmers 15 64%
Generalist medical practitioners 14 55%
Bus and tram drivers 14 50%
Motor vehicle mechanics and repairers 14 33%
Specialist medical practitioners 14 55%
Software and applications developers and analysts not elsewhere classified 14 58%
Earthmoving and related plant operators 14 44%
Waiters 13 44%
Early childhood educators 13 43%
Structural metal preparers and erectors 13 33%
Painters and related workers 13 63%
Agricultural and industrial machinery mechanics and repairers 12 67%
Bakers, pastry cooks, and confectionery makers 12 25%
Systems analysts 12 56%
Butchers, fishmongers, and related food preparers 12 38%
Health care assistants 12 60%
Cleaners and helpers in offices, hotels, and other establishments 12* 63%
Electrical engineering technicians 12 63%
Psychologists 11 75%
Plasterers 11 25%
Civil engineers 11 57%
Physiotherapists 11 40%
Roofers 11 78%
Average - 50%

And here’s how those same occupations ranked in previous years:

Occupation 2022 2021 2020 2019 2017
Bricklayers and related workers 1st 7th 5th 7th 6th
Carpenters and joiners 2nd 6th 6th 4th -
Heavy truck and lorry drivers 2nd 4th 3rd 1st 4th
Metal working machine tool setters and operators 2nd 9th - - -
Nursing professionals 2nd 2nd 1st 6th 4th
Plumbers and pipefitters 2nd 1st 2nd 4th 2nd
Building and related electricians 2nd 7th 5th 4th 6th
Welders and flame cutters 3rd 3rd 3rd 2nd 3rd
Concrete placers, concrete finishers, and related workers 3rd 6th 6th 6th -
Sheet metal workers 4th - - - -
Floor layers and tile setters 4th - - - -
Software developers 5th 5th 4th 8th 4th
Cooks 5th 10th 3rd 5th 1st
Building construction laborers 5th - - - -
Electrical mechanics and fitters 5th 7th - - -
Application programmers 5th 8th 4th - -
Generalist medical practitioners 6th 6th 4th 7th 2nd
Bus and tram drivers 6th - - - -
Motor vehicle mechanics and repairers 6th 8th 7th 6th 6th
Specialist medical practitioners 6th 8th - - -
Software and applications developers and analysts not elsewhere classified 6th 10th 6th 8th -
Earthmoving and related plant operators 6th - - - -
Waiters 7th - - - -
Early childhood educators 7th - - - -
Structural metal preparers and erectors 7th - - - -
Painters and related workers 7th - - - -
Agricultural and industrial machinery mechanics and repairers 8th 7th 6th 3rd 5th
Bakers, pastry cooks, and confectionery makers 8th - - - -
Systems analysts 8th 3rd 6th 2nd 5th
Butchers, fishmongers, and related food preparers 8th - - - -
Health care assistants 8th 8th 7th - -
Cleaners and helpers in offices, hotels, and other establishments 8th - - - -
Electrical engineering technicians 8th - - - -
Psychologists 9th - - - -
Plasterers 9th - - - -
Civil engineers 9th 5th 6th 8th -
Physiotherapists 9th - - - -
Roofers 9th 10th - - -

Despite nearing a 50/50 split in the job market, female employees are more prone to periods of unemployment. This is thanks to a disproportionate split in widespread shortage occupations and surplus occupations.

Here are the figures for the gender split in EU27 countries:

Male Female
All Occupations 54% 46%
Widespread Shortage Occupations 66% 34%
Surplus Occupations 38% 62%

Around 17% of the EU27 workforce is made up of under 30s. That equates to over 32 million employees.

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The 15 to 29-year-old age bracket is slightly overrepresented in widespread surplus occupations (20%).

Here’s a breakdown of EU27 employment stats split by age bracket:

15 to 29 yo Employees 30 to 65 yo Employees
All Occupations 17% 83%
Widespread Shortage Occupations 18% 82%
Surplus Occupations 20% 80%

Source: EURES

Conclusion

Labor shortages are an important consideration no matter where your business is based.

For more work-related data, take a look at Fascinating Remote Work Statistics, Freelance Statistics, Trends and Insights, and New Outsourcing Statistics.