Insight · 4 September 2026 · 4 min

Europe's labour shortage is not a temporary HR problem

In Central and Eastern Europe it is becoming a structural business issue. July 2026 Eurostat figures, the Czech dependence on foreign labour, and why workforce sourcing now belongs in long-term risk management.

3.3 %
Unemployment, Czechia, July 2026
Eurostat
3.4 %
Unemployment, Poland, July 2026
Eurostat
6.1 %
Unemployment, EU average, July 2026
Eurostat
22 %
Foreign nationals among all employees in Czechia, end 2025
ČNB
935,000
Foreign employees in Czechia, end 2025
ČNB
38 %
Share of Ukrainian citizens among foreign employees in Czechia
ČNB

Europe's labour shortage is not a temporary HR problem. In Central and Eastern Europe, it is becoming a structural business issue.

The latest Eurostat figures for July 2026 confirm it again. Unemployment stands at just 3.3 % in Czechia and 3.4 % in Poland, compared with 6.1 % across the EU. Czechia continues to operate one of the tightest labour markets in Europe — and this has a direct consequence: economic growth in the region is increasingly dependent on foreign workers.

Foreign nationals already represent approximately 22 % of all employees in Czechia — around 935,000 people, according to Czech National Bank data for the end of 2025. Ten years ago, that share was only around 8 %. The change is most visible in labour-intensive sectors: manufacturing, logistics, construction, hospitality, care services and skilled blue-collar professions.

But there is another strategic issue that companies in CEE should already be thinking about.

Both Czechia and Poland have become heavily reliant on workers from Ukraine. In Czechia alone, around 358,000 Ukrainian citizens were employed at the end of 2025 — more than 38 % of all foreign employees. Nobody knows exactly when or how the war will end. But when the reconstruction of Ukraine accelerates, it is reasonable to expect that at least part of this workforce may eventually return home. For Central Europe, even a partial return could create another significant shift in an already extremely tight labour market.

That is why I believe companies should not look at international recruitment simply as a solution to today's vacancies. It is becoming part of long-term workforce risk management. The question is increasingly not whether an organisation will need international talent, but how diversified and sustainable its future sources of workforce are.

This is also why we have been building our capabilities in the Philippines for several years. Filipino workers have proven to be an excellent fit for many European labour markets — particularly in skilled manufacturing, engineering, construction, logistics, hospitality and care. More importantly, they give companies an additional long-term source of talent instead of increasing dependence on the same limited labour pools already shared by the entire CEE region. And the model matters: the worker is employed directly by the company that hired them, with the contract signed and verified before departure.

The labour market of the next decade will look very different from the one we were used to. Companies that start diversifying their workforce today will be much better prepared for that shift than those that wait until the shortage becomes critical.

UNEMPLOYMENT RATES, JULY 2026% of labour force, seasonally adjustedFinland10.5Spain10.0Sweden8.7France8.3Greece7.9Latvia7.3Luxembourg7.1Estonia6.9Denmark6.7Romania6.4Austria6.2Lithuania6.2Belgium6.0Italy5.8Portugal5.7Slovakia5.7Ireland5.1Hungary4.5Croatia4.3Germany4.0Netherlands4.0Cyprus3.9Bulgaria3.6Slovenia3.5Malta3.5Poland3.4Czechia3.3EU AVERAGE 6.1
Germany, the Netherlands, Finland and Sweden: trend component. Source: Eurostat, dataset une_rt_m.

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