RUZ: Workforce Shortages Could Be Addressed with More Foreign Workers

Bratislava, April 22 (TASR) - The situation with the shortage of qualified workers in Slovakia is alarming, employers associated in the National Union of Employers (RUZ) warned on Tuesday. According to RUZ, solutions to this problem could include creating more attractive conditions for foreign workers, limiting the possibility of early retirement, or, for instance, reducing the number of public employees. "Due to demographics, the number of working people will significantly decrease by 2040. Slovak employers are already feeling a serious shortage of labor. For example, in the transport sector alone, we are recording over 16,400 open positions, which limits us more than other EU countries. This is a structural problem that will continue to negatively affect the productivity of our economy, and thus also the overall quality of life and public finances. Therefore, measures must be implemented to increase the availability of the workforce," said RUZ Vice President Pavol Piestansky. Some of the solutions include closer links between the education system and the real needs of the labor market, a clear definition of social demand, changes in the pension system, inclusion of long-term unemployed citizens, and a higher rate of employment of qualified workers from third countries. Slovakia doesn't belong among countries with a high share of employed foreigners. According to the latest statistics as of January 1, 2024, only 4% of the population in Slovakia were foreigners, with 2.9% being citizens of other EU member states and 1.1% from non-EU countries. For comparison, approximately one million foreigners work in the Czech Republic (19% of the working population), while in Slovakia it is only about 115,000 (5% of the working population). "This difference shows that Slovakia has enormous untapped potential in the area of foreign workers," Piestansky stated. Employers propose further streamlining of the process of admitting and employing foreigners, especially by shortening deadlines, reducing administrative burdens, and improving cooperation among involved authorities so that employers can obtain the necessary workforce more quickly and flexibly. In addition, RUZ proposed introducing a nationwide stable and interconnected system for labor market inclusion, or significantly limiting or even abolishing the possibility of early retirement. Employers could also imagine increasing the retirement age by one or two years beyond the current legislation. Through natural retirements in the public sector and not replacing or only partially replacing these employees, the number of such workers should be reduced by up to 100,000 over the next 13 years, according to RUZ. "This would achieve greater availability of employees for the private sector," RUZ added. mf