Skill shortages in Europe are damaging the growth prospects of companies and the continent’s economy, according to ‘Building a Better Working Europe’, a new survey released as part of the EY Attractiveness Survey series. The most alarming talent shortages are in digital skills, with cybersecurity (48 per cent), artificial intelligence (AI) and robotics (48 per cent) identified as the scarcest skills by the survey respondents.

According to the survey, European companies recognise they have skill shortages and 89 per cent say they are investing in improving the digital skills of new and existing workers. However, only 43 per cent of companies have a human resources (HR) strategy that looks more than three years ahead.

These findings mirror EY’s recently published ‘Malta Attractiveness Survey’, which found that investors’ ability to source skilled and unskilled labour is becoming increasingly challenging. Sixty-four per cent of respondents face difficulties finding or recruiting the personnel they need. This figure has risen over the past four years, amounting to 47 per cent in 2015.

For Malta to remain globally competitive, 70 per cent of respondents are convinced that emphasis should be on developing Malta’s education and skills. Furthermore, 63 per cent of investors suggested that policy-makers invest in enhancing workforce skills for the digital age.

Andy Baldwin, EY Area Managing Partner – Europe, Middle East, India and Africa (EMEIA), stated: “The relentless march of digitalisation is already having a profound impact on the labour market, creating shortages in specialist digital skills and surpluses in other areas. The reskilling and upskilling of Europe’s workforce need to take an inclusive view on what talent means, implement comprehensive people strategies and commit to investing in the training and development of existing staff alongside the recruitment of new employees.”

Ronald Attard, EY Malta Country Mana­ging Partner, stated: “Transformation is taking place everywhere around us and at all levels. We are in the process of radically changing who and what we are. Malta has made admirable strides forward to be proactive in embarking on this exciting journey but finding the right talent remains a challenge for investors.

“Going forward, greater emphasis needs to be placed on developing digital skills that position Malta at the forefront of innovation. Local companies need to increasingly adopt digital transformation and actively include their people strategy within their digital agenda.”

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