ESDE 2023 “Employment and Social Developments in Europe” Annual report

19.07.2023 – On 5 July the European Commission published the 2023 edition of the “Employment and Social Developments in Europe” annual Report (ESDE 2023). This year’s focus is on the shortage of workforce and the lack of skills in the EU, as both frameworks are related to the 2023 European Year of Skills.

The Report highlights European labour markets resilience, which proved to be remarkable despite the economic slowdown due to the Russian invasion of Ukraine over the past year. The EU economy rose by 3.5% in real terms in 2022 and employment rates reached a 74.6% record level. Nonetheless, there are still issues related to the under-representation of women and persons with disabilities on the labour market, and the shortage of workforce caused not only by the ageing population, but also by the green and digital transition.

The Commission recommended a number of possible measures in order to tackle the shortage of workforce and fill the skills gap, such as the reform of tax and social security systems, investing in adult learning, removing barriers to the entry into the labour market through more accessible education and early childhood care, enhancing targeted migration of workforce from third Countries and improving work conditions.

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Employment and Social Developments in Europe 2023