Low Wages Drive Labor Shortages in Bulgaria and Europe

Labor shortages have become a key issue discussed at the recent EU Council of Employment and Social Policy Ministers (EPSCO) meeting. While employers often point to a lack of skills as the primary reason for the shortage, a study by the European Trade Union Institute (ETUI) highlights a different perspective, revealing that low wages play a significant role.

According to the study, industries across the EU struggling with the most significant labor shortages typically offer lower wages. On average, these sectors pay about 9% less than those experiencing fewer difficulties in filling positions. In 13 out of 22 EU member states, the sectors most impacted by labor shortages also offer the lowest pay. Notable pay gaps between sectors with the greatest and least shortages can be found in Italy, Luxembourg, Germany, the Netherlands, and Greece.

The European Trade Union Confederation (ETUC) has urged the European Commission to incorporate measures in the upcoming revision of public procurement directives to ensure that companies negotiating fair wages and working conditions with unions are the only ones eligible for public funds through procurement processes.

ETUC General Secretary Esther Lynch emphasized the importance of addressing the low pay issue, stating that labor shortages are often discussed without acknowledging one of their main causes. She urged ministers to recognize that improving the quality of jobs, particularly through higher wages, is key to resolving Europe’s labor shortages.

Research supports that offering decent wages and working conditions benefits both workers and businesses, contributing positively to the economy. One of the most effective strategies to achieve this, the study concludes, is by expanding the number of workers covered by collective agreements.

Sources:

• EU Council of Employment and Social Policy Ministers
• econ.bg