Burst internet bubble fails to plug Europe’s IT skills gap

Date: 24/10/02

By Peter Chapman

HI-TECH firms in the EU still face a skills gap despite a glut of information technology specialists on the market following the bursting of the internet and telecoms bubble.

Erkki Liikanen, the enterprise and information society commissioner, warned this week that shortages were hitting competitiveness of 'traditional' firms, where IT skills are most needed to transform out-of-date business practices.

Lack of even basic expertise in the workforce is holding back innovation in retailing, health and social services, where less than 60 of workers use email for outside communications.

'One might believe that the problem of e-skills has diminished.

'The answer is that, despite growing unemployment among ICT [Information and Communications Technologies] professionals, an ICT skills gap still exists,' Liikanen told an e-skills conference in Copenhagen.

He said a key reason for the shortage of know-how is that demand for skills comes from users of skills rather than ICT industries themselves.

Worst hit is the machinery and engineering sector, with 65 of companies facing 'great or some difficulties recruiting IT specialists'.

Liikanen said the brain-drain of top experts to the United States and beyond is still a key factor for the skills gap.

Another reason for current shortages is the time-lag before policies aimed at addressing the issue take effect.

'Building up the necessary professional e-skills takes time, and not only because of the time it takes for new university graduates to complete their studies.

'Better workforce training also requires long-term investment so that people can acquire and maintain appropriate e-skills,' Liikanen said.

Hi-tech firms in the EU still face a skills gap despite a glut of information technology specialists on the market following the bursting of the internet and telecoms bubble.