20 Countries with the Highest Labor Shortage

Knowing which countries have the highest labor shortages around the world is essential before deciding to travel. These will help you make an informed choice about where to focus your job search and japa. 

Since Covid 19, many European countries have experienced massive resignations of workers, with 30.5 million resigning in August 2023, foreign workers are hired to close the skills gap in sectors experiencing a shortage of labor.

In this article, we will explore the 20 countries in Europe that are experiencing the most significant labor shortages.

Japan

Japanese firms are feeling the most acute shortage of full-time workers since the COVID-19 pandemic, with more than half of firms understaffed, according to a private-sector survey. 68.1% of companies actively searching for additional foreign workers to address challenges brought on by an aging population.

Sectors: Education, healthcare, and technology
Skilled Labor Shortage: 85%

Germany

Roughly 50% of German businesses are facing challenges due to a lack of available workers. There are approximately 1.8 million job vacancies, with sectors such as construction and manufacturing being particularly impacted.The country is increasingly relying on immigration to fill gaps in key sectors.

Sectors: Engineering, healthcare, and manufacturing
Skilled Labor Shortage: 82%

Israel

Israel faces a significant labor shortage, particularly in the construction sector, exacerbated by the conflict with Hamas, leading to a decline in construction activity and potential housing shortages. The government is addressing this by increasing the quota of foreign workers and streamlining regulations.

Sectors: Technology, construction, and healthcare
Skilled Labor Shortage: 82%

Greece

Greece faces a significant labor shortage, estimated to require over 300,000 foreign workers to address the issue. This shortage is affecting multiple industries, including agriculture, tourism, and construction.

Greece reports an 82% labor shortage, with tourism, agriculture, and healthcare sectors being the most affected. Economic challenges and emigration have worsened the issue.

Sectors: Tourism, agriculture, and Construction
Skilled Labor Shortage: 82%

Ireland

Ireland struggles with a severe labour shortage crisis across key industries like construction, hospitality, and healthcare. Efforts to address the shortfall include bringing in 40,000 non-EU workers annually and accelerating the process of issuing visas for skilled workers from non-EU countries.

Sectors: Technology, healthcare, and construction
Skilled Labor Shortage: 81%

Portugal

Portugal is experiencing a huge labour shortage crisis across eight crucial sectors, with a pressing need for skilled workers in IT, healthcare, hospitality, agriculture, and renewable energy, with the construction industry alone needing 80,000 more workers. 

Sectors: Tourism, agriculture, and healthcare
Skilled Labor Shortage: 81%

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United Kingdom

As of 2024, about 7.4 percent of businesses in the United Kingdom were facing worker shortages. Among these, approximately 12 percent of businesses in the arts, entertainment, and recreation sectors reported staff shortages, the highest of any industry. The top job categories experiencing labor shortages include healthcare, technology, construction, and hospitality.

Sectors: Healthcare, technology, and hospitality
Skilled Labor Shortage: 80%
Ageing Population: 18%

France

A sharp increase in job vacancies and general labour shortages in France are creating tensions as companies look for workers. Over 100,000 jobs are projected for France’s hydrogen sector by 2030, despite a workforce challenge.

Sectors: Hospitality, construction, and social service
Skilled Labor Shortage: 80%

Canada

Canada welcomed approximately 485,000 permanent residents in 2024, with a subsequent increase to 500,000 in 2025 and maintaining the same level in 2026. This plan is designed to address labor shortages, drive economic growth, and facilitate family reunification. Critical sectors like health, STEM, trades, and agriculture are prioritized

Sectors: Healthcare, technology, and agriculture
Skilled Labor Shortage: 80%

Austria

Austria reports a 78% labor shortage, particularly in healthcare, technology, and construction. The country is actively recruiting skilled workers from abroad.

Sectors: Healthcare, technology, and construction
Skilled Labor Shortage: 78%

Brazil

Despite a recent drop in unemployment to 6.2% (the lowest since 2012), many companies are reporting difficulty filling vacancies, indicating a structural problem in the labor market.

There is a significant deficit in occupations related to personal care, protective services, and health professionals, with a particular shortage of medical imaging technicians and ICT professionals, totaling in the thousands.

Sectors: Technology, and healthcare
Skilled Labor Shortage: 80%

Singapore

Singapore is tackling its workforce shortages by recruiting 260,000 professionals, with a focus on IT & Software, Banking, and Engineering sectors. This hiring surge is in reaction to a decrease of 194,000 foreign workers during the pandemic. There is a high demand for sales and compliance specialists, engineers, software developers, product managers, and AI specialists.

Sectors: Technology, engineering, and Software Developers
Skilled Labor Shortage: 79%

Romania

Romania reports a 79% labor shortage partly due to emigration to other European countries, leading to a need for foreign workers, particularly in construction and hospitality.

Sectors: Healthcare, agriculture, and technology
Skilled Labor Shortage: 79%

Slovakia

Slovakia has seen a rapid increase in employees coming from foreign workers since 2022, with numbers quadrupling to 1,350 as the IT and automotive sectors, particularly, are struggling with staff shortages.

Figures are also on the rise in the IT sector as Slovakia faces a long-term issue of brain drain, with many qualified Slovaks quitting, prompting the government to ease visa access for foreign workers in certain roles

Sectors: IT, Manufacturing, and healthcare.
Skilled Labor Shortage: 79%

Hong Kong

Hong Kong is projected to experience a significant labor shortage of 180,000 workers by 2028. This represents an increase of 130,000 from 2023, primarily due to an aging population and a shrinking workforce, with a particular shortage in skilled technical roles

Sectors: Technology
Skilled Labor Shortage: 79%

Spain

Spain reports a 78% labor shortage, with tourism, agriculture, and healthcare sectors being the most affected. The country is working to attract foreign workers.

Sectors: Tourism, agriculture, and healthcare
Skilled Labor Shortage: 78%

Puerto Rico

Puerto Rico is experiencing a labor shortage, with businesses facing difficulties filling positions, partly due to an economic and fiscal collapse, natural disasters, and a decline in the workforce. However, recent data suggests the island is making progress in easing the shortage, with fewer employers reporting hiring challenges compared to previous years

Sectors: Healthcare, construction, and education
Skilled Labor Shortage: 78%

Australia

Australia is experiencing a 78% labor shortage, with healthcare, technology, and agriculture sectors being the most affected. Immigration remains a key solution.

Sectors: Healthcare, technology, and agriculture
Skilled Labor Shortage: 78%

Sweden

Sweden is facing labor shortages, particularly in healthcare, education, and IT, with specific occupations like midwives, civil engineers, and software developers experiencing high demand. To address these shortages, Sweden is exploring strategies like increased immigration and vocational training. 

Sectors: IT, Healthcare, and  Software Developer
Skilled Labor Shortage: 77

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