Navigating Europe’s Tight Labor Market

Our Privacy Policy has been updated! The Conference Board uses cookies to improve our website, enhance your experience, and deliver relevant messages and offers about our products. Detailed information on the use of cookies on this site is provided in our cookie policy. For more information on how The Conference Board collects and uses personal data, please visit our privacy policy. By continuing to use this Site or by clicking "OK", you acknowledge our privacy policy and consent to the use of cookies.

Navigating Europe’s Tight Labor Market

11 December 2024 / Article

Download Article

Europe’s persistent labor shortages, exacerbated by rising wage costs and a stagnant labor supply, are posing significant challenges to business throughout the region. This report explores strategies chief human resources officers (CHROs) and their teams can adopt to address these pressures, with a focus on workforce productivity, retention, and investments in skilling to protect profitability and future-proof talent capabilities.

Key Insights

Europe’s labor crunch continues despite the late-2024 cooldown; the number of workers available to fill open positions in Europe is at an all-time low, with companies citing labor shortages as the second most important factor affecting production, after insufficient demand.
Strong job growth in a subdued economy slows labor productivity growth in Europe: persistent labor market tightness and productivity declines are challenging Euro Area companies’ profitability.
Focusing on workforce productivity and retention is essential to safeguarding companies’ margins and future-proofing talent strategies, requiring CHROs to prioritize drivers such as skills-based strategies, leadership quality, agility, and employee well-being.

Authors

Robin Maillard

Research Associate, Human Capital Center, Europe
The Conference Board

Jean-Marc Verbist

Jean-Marc Verbist

Center Leader, Human Capital, Europe
The Conference Board

Marion Devine

Principal Researcher, Human Capital, Europe
The Conference Board

This publication is available to you, but you need to sign in to myTCB^® or create an account to access it.To learn more about becoming a Member click here. To check if your company is a Member, click here

Sign In
Create An Account

By Clicking 'Create Account',
You Agree To Our Terms Of Use

Create Account

Members of The Conference Board get exclusive access to Trusted Insights for What’s Ahead^® through publications, Conferences and events, webcasts, podcasts, data & analysis, and Member Communities.

Other Related Resources

Chart

Infographic: The ROI of Employer Branding

Infographic: The ROI of Employer Branding

May 12, 2025

Chart

Infographic: Evolving Total Rewards Framework

Infographic: Evolving Total Rewards Framework

April 10, 2025

Article

A Tale of Two Continents: The Impact of US DEI Policy on European Businesses

A Tale of Two Continents: The Impact of US DEI Policy on European Businesses

April 04, 2025

Chart

Infographic: Skilling at Speed and Scale: Five Guideposts to Success

Infographic: Skilling at Speed and Scale: Five Guideposts to Success

March 21, 2025

Report

Steady Hands in Stormy Seas: Human Capital as the Anchor of Business Resilience

Steady Hands in Stormy Seas: Human Capital as the Anchor of Business Resilience

March 13, 2025

Database

CEO Confidence Dashboard

CEO Confidence Dashboard

January 27, 2025

Report

People, Planet, Progress: How CHROs Drive Sustainability Deep in an Organization

People, Planet, Progress: How CHROs Drive Sustainability Deep in an Organization

January 17, 2025

Report

The Human Compass: Navigating Leadership in the Age of AI

The Human Compass: Navigating Leadership in the Age of AI

December 16, 2024

Report

Euro Area Outlook 2025–2039

Euro Area Outlook 2025–2039

December 13, 2024

Chart

CHROs can press on six gears to improve human productivity

CHROs can press on six gears to improve human productivity

December 10, 2024

Report

CEO Confidence Drops in Europe

CEO Confidence Drops in Europe

November 28, 2024

Podcasts

S1E11 - The Great Skills Shift: Shaping Tomorrow's Workforce

S1E11 - The Great Skills Shift: Shaping Tomorrow's Workforce

November 22, 2024

Article

The Evolving Total Rewards Landscape: Tactics to Attract and Retain Talent

The Evolving Total Rewards Landscape: Tactics to Attract and Retain Talent

November 07, 2024

Article

The Paramount Value of Total Rewards: Forward Strategies for CEOs and CHROs

The Paramount Value of Total Rewards: Forward Strategies for CEOs and CHROs

November 07, 2024

Essay

An HR Leader’s Survival Guide to the Age of AI

An HR Leader’s Survival Guide to the Age of AI

November 05, 2024

Report

Skilling at Speed and Scale: Five Guideposts to Success

Skilling at Speed and Scale: Five Guideposts to Success

October 28, 2024

Podcasts

S1E9: Mirror, mirror on the wall, pay transparency for all?

S1E9: Mirror, mirror on the wall, pay transparency for all?

October 24, 2024

Article

Al for Employee Engagement Measurement

Al for Employee Engagement Measurement

August 23, 2024

Article

Preparing for Pay Transparency in Europe: Learnings from a Pioneer

Preparing for Pay Transparency in Europe: Learnings from a Pioneer

August 12, 2024

Article

Future: Reward Europe – The Highlights

Future: Reward Europe – The Highlights

August 06, 2024

Report

Productivity Through People: New Opportunities for CHROs

Productivity Through People: New Opportunities for CHROs

July 01, 2024

Chart

Infographic: The ROI of Employer Branding

Infographic: The ROI of Employer Branding

May 12, 2025

Chart

Infographic: Evolving Total Rewards Framework

Infographic: Evolving Total Rewards Framework

April 10, 2025

Article

A Tale of Two Continents: The Impact of US DEI Policy on European Businesses

A Tale of Two Continents: The Impact of US DEI Policy on European Businesses

April 04, 2025

Conference

Future: Reward Europe 2025

Future: Reward Europe 2025

June 05, 2025

Upcoming Webcasts

How to Navigate the Reimagined Workplace in 2025

How to Navigate the Reimagined Workplace in 2025

June 17, 2025

Conference

CHRO Summit: Navigating through a Tsunami of Change

CHRO Summit: Navigating through a Tsunami of Change

June 24, 2025

Upcoming Webcasts

Change is Changing: How Organizations Can Master Change Management

Change is Changing: How Organizations Can Master Change Management

July 08, 2025

Upcoming Webcasts

Focusing on Digital Well-Being in the Workplace

Focusing on Digital Well-Being in the Workplace

August 12, 2025

Councils

Human Resources Executives Council

Human Resources Executives Council

Councils

Talent, Performance and Succession Planning Council

Talent, Performance and Succession Planning Council

Councils

Corporate Reward Council

Corporate Reward Council

Councils

Councils

HR Strategy & Transformation Council

HR Strategy & Transformation Council

Councils

Leadership, Talent & Organizational Transformation Council

Leadership, Talent & Organizational Transformation Council

Councils

Strategic People Analytics & Planning Council

Strategic People Analytics & Planning Council

Councils

Global Reward Council I

Global Reward Council I

Councils

HR Operations Council

HR Operations Council

Councils

Global Benefits Council

Global Benefits Council

Councils

Conseil Global CHRO

Conseil Global CHRO

Councils

Wellbeing Executives Council

Wellbeing Executives Council

Councils

Talent Acquisition Executives Council

Talent Acquisition Executives Council

Councils

International Reward Council

International Reward Council

Conference

Future: Reward Europe 2025

Future: Reward Europe 2025

June 05, 2025

Upcoming Webcasts

How to Navigate the Reimagined Workplace in 2025

How to Navigate the Reimagined Workplace in 2025

June 17, 2025

Conference

CHRO Summit: Navigating through a Tsunami of Change

CHRO Summit: Navigating through a Tsunami of Change

June 24, 2025

Conference Board Sample Web Chat