HABERLER & YAYINLAR
02.05.2017
EKONOMİ YAYINLARI

Labour shortages in Central and Eastern Europe countries: a growing concern for businesses

Labour shortages in Central and Eastern Europe countries: a growing concern for businesses

Labour markets in the Central and Eastern Europe (CEE) region are continuing to improve. Unemployment rates have reached the lowest levels ever recorded and most CEE economies are enjoying lower unemployment than the EU average. Rising wages and low inflation, amid improving consumer sentiment, have made household consumption the main driving force behind economic expansion.

Nevertheless, while households and the region’s overall economic activity are benefiting from these developments, corporates are suffering. The latter are faced with the strengthened wage bargaining power of their employees and are forced to accept higher compensation costs. Dynamic external and domestic demand, the low birth rate and emigration have all contributed to labour shortages. A rising number of companies are reporting this as a barrier to business expansion. Job vacancies are especially high in the Czech Republic and Hungary.

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