As Europe’s Labor Market Stifles Competitiveness, Employers Race to Hire AI-Ready Talent

(Adnkronos) – BRUSSELS, Oct. 31, 2023 /PRNewswire/ — A new report by The Conference Board reveals early signs of a race among European employers to hire AI-ready talent as companies grapple with a slowing economy, a hot labor market, and declining productivity. The report, A Hot Labor Market in a Chilling Economy, details a dramatic uplift in demand for cognitive, human-based skills over the last twelve months.  Skills like curiosity, teamwork, adaptability, and communication are increasingly sought after by European employers: 'willingness to learn' saw a 61 percent rise in demand between Q2 2022 and Q2 2023, followed by 'collaborating in teams and networks' (49 percent), according to recent data analyzed by The Conference Board. Such skills are key to harnessing the opportunities offered by AI.   "The data suggest that employers are pinning their hopes on hiring workers who can take advantage of recent developments in AI to overcome the broader challenges that they are facing in the European labor market," said Sara Murray, Managing Director, International, The Conference Board.   "As our report highlights, labor productivity has flatlined over the last three years, while the scarcity of workers is driving up costs for businesses and putting pressure on European competitiveness. In this environment, it is unsurprising that employers are looking to exploit the productivity gains that AI is promising. However, employers should be aware that the impact is likely to vary by sector and industry."  Among the report's key highlights:   European employers are continuing to add staff, despite economic deceleration:  Hours worked per employee remains almost two percentage points below pre-pandemic levels. Three factors are driving this trend:   Divergent labor trends in Germany and France spell trouble for Europe's economic outlook:   "Employers have multiple strategies available to deal with the challenging conditions. Regardless of the approach, they will need to strike a balance between filling vacancies and maintaining overall productivity," said Jean Marc Verbist, Human Capital Center Leader, Europe, The Conference Board. "Expect to see companies put a lot of focus on workplace culture and adaptation to AI in the coming months. Employers can also combat unfilled job vacancies by widening their talent search, hiring under-represented groups like women, senior and foreign workers, and flexible labor. However, managers need to ensure that these approaches work in harmony together."   About The Conference BoardThe Conference Board is the member-driven think tank that delivers Trusted Insights for What's Ahead™. Founded in 1916, we are a non-partisan, not-for-profit entity holding 501 (c) (3) tax-exempt status in the United States. www.ConferenceBoard.org  Logo – https://mma.prnewswire.com/media/624268/The_Conference_Board_Logo.jpg
 
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