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Business leaders and financial policymakers say the lack of skilled labor is one of the key factors preventing the reindustrialization of Europe’s economy.
Comments come in the middle Decline in industrial production similarly record low unemployment rate Across the EU. Industrial production decreased by 5.8% from the previous year, and the unemployment rate was at a record low of 5.9%.
they again, study A report published last year by the European Investment Bank (EIB) found that 85% of European companies believe that a lack of adequately skilled staff is a barrier to investment, and that rising energy prices (82%) ) is the second most frequently cited disability.
speak at event At the meeting held by Belgium’s regional and federal investment companies on Monday, February 5, business and finance officials reiterated the importance of addressing skills shortages in the region.
“When we talk about the topic of reindustrialization, we should recognize that our country has a lot of know-how,” said Michel Casselmann, general manager of PMV, the Flemish government’s investment arm. “But it’s disappearing as the industry declines.”
Casselman also stressed that there is a “really urgent need” to protect and foster “the history and knowledge that remains” before it is too late.
“We have to make sure we re-industrialize before history disappears. That’s why we have to act now,” he added.
“One of the biggest challenges”
Marjut Falkstedt, executive director of the European Investment Fund (EIF), which provides venture capital to small and medium-sized enterprises (SMEs) and is majority-owned by the EIB, similarly said: “One of the biggest challenges is… [faced by] Companies have access to skilled labor. ”
“[We] “Now, public institutions need to focus on expanding and improving training possibilities, and also look at university systems and high schools in a new light,” she said. “We need to rethink our skills.” [and] the skill sets of our employees; ”
Tom Paemerer, CEO of Norway-based wood producer Kebony, which also operates a factory in Antwerp, said the shortage of skilled workers was one of the widespread challenges faced by European industry. This is just a symptom of major economic challenges, including a tight labor market, he added.
“I really believe [that] If we want to face demographic trends and maintain industrial activity, we need to be very inclusive in our approach to the labor market and ensure that we have the right policies to realize all the potential there is. Yes,” he said.
“You have to let everyone do their job. Because in our case, sometimes it’s easier to find a specialized R&D person than it is to find a machine operator, and that’s really the bottleneck. It’s from.”
Belgium: A microcosm of Europe?
Belgium, which assumed the six-month rotating Presidency of the Council of the European Union in January, is suffering perhaps more acutely than most member states from the twin challenges of creeping industrialization and a historically tight labor market. .
Belgium’s industrial output has fallen twice as fast as the EU average over the past year (11.6% vs. 5.8%), while the unemployment rate is near an all-time low of 5.7%, below the EU average of 5.9%.
Over the past quarter century, the role of manufacturing in the economy has also declined more rapidly in Belgium than in other European countries. The share of value-added manufacturing in GDP in Belgium has fallen from 18.2% in 1998 to 12.6% in 2022, while for the EU as a whole, that Dropped From 17.8% to 15%.
Encouragingly, European policymakers, including Belgian domestic leaders, have increasingly emphasized the need to protect Europe’s industrial base in recent months.
Last month, Prime Minister Alexander Decroo explicitly called for an EU industrial agreement “in parallel with the Green Deal” to “keep industrial production here in Europe”.
Mr. Decroux’s statement: echoed Belgian Finance Minister Vincent van Peteghem called on the EU to “cut out bureaucracy” to encourage European investment.
Salt in the (industrial) wound?
The aforementioned events occurred on the same day that the two studies were published, providing stark evidence of the severity of Europe’s economic woes.
The OECD is a group of mainly wealthy countries, demoted It forecast growth for the euro area this year from 0.9% to just 0.6%, citing the “continued negative impact of energy price shocks” as the main reason why Europe’s growth is expected to slow.
Notably, the report calls on countries to introduce “policy reforms to improve educational outcomes.” [and] Enhance skill development and accelerate growth.
meanwhile, The Munich-based think tank Ifo Institute investigation It found that 36.9% of German manufacturers reported a lack of orders last month, up from 20.9% in January 2023. Germany is the EU’s largest economy.
Klaus Wallrabe, head of research at the institute, said that although energy-intensive industries were hardest hit, “most industries were not spared” from the lack of demand over the past year.
[Edited by Alice Tayor]
Read more at Euractiv
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