CEU economist wins ERC Synergy Grant for European labor shortage study

Andrea Weber, a professor of economics at Central European University, is part of a four-economist team awarded a €12.7 million European Research Council Synergy Grant for a six-year project on labor shortages, mismatch and mobility. The research aims to explain why Europe has both worker shortages and underemployment, and how better skills matching and cross-border mobility could ease the strain.

Why it matters: - Europe is facing labor shortages at the same time as many workers remain underemployed or in jobs that do not fully use their skills. - The mismatch has direct economic effects on productivity, wages, inequality and public services. - The findings could shape labor-market policy in Austria, Central and Eastern Europe and across the continent.

What happened: - Andrea Weber, professor of economics at Central European University, was named as one of four lead economists on a €12.7 million European Research Council Synergy Grant. - The grant funds a six-year project called "Labor Shortages: Measurement, Mismatch, and Mobility". - The research team includes Richard Blundell, Fabien Postel Vinay and Kjell Salvanes, with senior contributors from the University of Bristol, University College London, CEU and NHH Norwegian School of Economics. - The project also involves researchers from the Institut des Politiques Publiques in France and the e61 Institute in Australia.

The details: - LabShort will study why labor shortages and underemployment coexist across Europe. - The project will develop new measures of skill and geographic imbalances in labor markets. - The researchers will examine how employers' and workers' expectations shape job search, hiring and skill acquisition. - The team will assess whether regional and cross-border mobility can reduce shortages and mismatch. - The work will use cross-country data linkages, new surveys and economic theory. - CEU said Weber's role is part of a broader effort to understand how labor markets affect productivity and regional inequality. - Weber said the project is especially relevant for Austria and Central and Eastern Europe, where cross-border mobility matters.

Between the lines: - Aging populations, smaller workforces and changing skill demands are tightening European labor markets. - Technological change, including artificial intelligence, may deepen the gap between available workers and employer needs. - The grant signals that labor-market mismatch is moving higher on Europe's research agenda, not just its policy agenda.

What's next: - The six-year project will now begin building the new datasets and survey evidence needed for the analysis. - The team is expected to produce findings that could inform labor-market reforms, mobility policy and skills training. - CEU said media inquiries should go through its press office at press@ceu.edu.

The bottom line: - Europe has a labor-shortage problem, but not only a labor-supply problem. The bigger challenge may be matching workers, skills and geography more effectively.