Europe Labor Market Report for January 2022: Key Takeaways and Rising Trends


The battle for talent in the European labor market is more intense than ever. Employment rates and job vacancies in many European countries are now reaching pre-pandemic levels. Combined with the acceleration of remote work, this has created a job landscape that is becoming increasingly complex. As a result, companies are finding different ways to attract and retain talent in order to stay ahead of their competition.

PRO’s NorthStar HCM team analyzed billions of data points to paint a picture of the current labor market in Europe, noting rising trends in pay rates and benefits, hiring practices and in-demand job skills. Here are some of the key findings from our January 2022 Europe Labor Market Report.

Jobs Are Taking More Time to Fill

The time it takes to fill positions has increased in several countries in Europe, including the UK, Netherlands, Belgium, Ireland and Germany. For highly skilled categories in which demand has outpaced the availability supply, this change has been even more prominent. Overall, the time to fill has increased by nearly a full week compared to the year prior for these high-demand segments.

Looking at specific countries, the Netherlands has experienced more vacancies as it has relaxed its COVID-19 prevention measures, resulting in less candidates and more time required to find them. Germany is going through a similar drought in available candidates, as there are more IT projects across the country and not enough candidates to fill the positions needed.

Tech Worker Demand is Very High

IT skill sets are very high in demand across the board according to our findings. In Belgium, for example, IT developers, functional analysts, business analysts, data scientists, and cybersecurity experts are highly sought after. In the Netherlands, candidates with coding skills in Python, Hadoop and R are leading the way in the postings listed. There is also an increased need to fill roles in companies involved in artificial intelligence, data management and networking, and cybersecurity. Due to this demand, such high-tech roles are taking around three weeks to fill. Many businesses in Germany are outsourcing their IT positions to Eastern Europe to find qualified candidates and reduce labor costs. As a result of the difficulty to find these roles, significant shifts in compensation are occurring.

Pay Rates and Compensation Are on the Rise

The high demand for tech workers and limited number of available candidates is resulting in companies offering higher pay across Europe. In the tech sector in the Netherlands, pay rates have gone up significantly, rising from around $80 per hour in 2019 to the current $110 an hour. Similarly, tech worker rates have been increasing in Ireland for the past two years.

Businesses are fighting to stay ahead of their competition and attracting candidates by providing additional benefits as well. In Belgium for example, companies are offering health insurance to draw in and retain workers. In the Netherlands, businesses are providing benefits such as education stipends, flexible work arrangements and remote work options, and even reducing weekly hour requirements. In Ireland, organizations are offering flexible and remote working, the opportunity for four-day workweeks, as well as long term development plans.

The bottom line is that the war for talent is fiercer than ever, and companies will need to find creative ways to acquire highly sought-after candidates during these significant world-wide labor market shifts.

To get more exclusive data and takeaways from the latest labor market trends across Europe, check out the full January 2022 Europe Labor Market Report.

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Disclaimer: The content in this blog post is for informational purposes only and cannot be construed as specific legal advice or as a substitute for legal advice. The blog post reflects the opinion of PRO Unlimited and is not to be construed as legal solutions and positions. Contact an attorney for specific advice and guidance for specific issues or questions.