Labour shortage amid high unemployment - Europe's jobs paradox

For one of our viewers Europe’s need for extra labour in a time of high unemployment is something of a conundrum. Carmen in Madrid asks: “In the debate over immigration it’s often said that EU countries need more workers. How is that possible when we have such high unemployment rates?”

Michelle Leigton of the International Labour Organisation responds: “The answer is that Europe is facing a declining (ageing) labour force. And actually, it is going to lose about 22 million people over the next two decades.

“A declining labour force means that businesses can’t be as productive or as competitive.
But another reason that businesses are often saying that they experience labour shortages, even when there is high unemployment, is that there are not enough people to match to the right job for their skill level.

““An interesting report, that the ILO issued last autumn”:http://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_340087/lang—en/index.htm identified quite surprisingly th