EUROPE’S record labour shortages are being driven by low wages and working conditions, new research shows.

According to a study by the European Trade Union Institute, the job vacancy rate across the continent is currently at a record high and more than a quarter of businesses in European Union countries reported production problems as a result of labour shortages last year.

EU leaders and business representatives have blamed the shortage solely on a skills gap among workers.

However, the research shows that sectors in which labour shortages increased the most from 2019 to 2022 tended to offer generally poorer working conditions and that labour shortages increased more among jobs with relatively low pay.

The study also found that labour shortages are highest in sectors and profiles that do not necessarily require higher skills.

European Trade Union Confederation general secretary Esther Lynch said: “Employers can’t find enough workers because they’re not offering good enough wages or working conditions. 

“It’s time that European politicians stopped dancing around the reason for our labour shortages and sent an equally clear message to employers here.

“Europe should stop trying to compete based on low pay and conditions and should instead raise productivity through investment in high-skills, high-tech and high-quality jobs.”