Europe’s retail sector is a major employer, particularly for SMEs, but faces slow employment growth, skills gaps and labour shortages. Jobs are shifting towards digital and back-end roles as e-commerce expands, but interpersonal and customer-facing skills remain crucial. Retail lags other sectors in advanced digital recruitment and ICT skill demand, limiting access to talent. Flexible contracts and lower qualification requirements provide entry opportunities but also contribute to job insecurity and high turnover. To adapt to digital and green transitions, tailored skills programmes, improved job quality and coordinated action by employers, social partners and policymakers are essential
Local Retail, Global Trends
How Digital, Green and Skills Shifts in the EU are Reshaping SMEs in Towns and Cities
Abstract
The European retail sector faces various challenges that affect its employment landscape and economic sustainability. The rapid rise of e-commerce, accelerated by the COVID-19 pandemic, has fundamentally disrupted traditional retail models, while simultaneously reducing physical store footfall. The shift towards widespread teleworking has further diminished city-centre retail traffic, compounding the sector's challenges. Concurrently, the cost-of-living crisis has compressed consumer spending, forcing retailers to navigate increasingly narrow profit margins. These converging pressures are reshaping the retail employment ecosystem, demanding innovative strategies to maintain workforce resilience and sector competitiveness in an increasingly digital and volatile economic environment.
As a labour-intensive sector central to Europe’s economic output and job creation, the future of European retail hinges on addressing its employment challenges. While technology is poised to streamline retail operations and boost productivity, it cannot fully replace the human element, likely resulting in a growing blending of brick-and-mortar and online shopping rather than a complete shift to the latter. Therefore, integrating technology to support rather than diminish human roles will be crucial for maintaining the sector’s vitality amidst growing labour shortages.
Europe is navigating the twin transition, a term encapsulating the dual challenges and opportunities of the digital and green transformations. This critical juncture is characterized by the widespread adoption of digital technologies and a gradual shift towards sustainable practices. European countries are confronted with the imperative to design and implement policies to drive digitalisation efforts to sustain growth, competitiveness, and resilience, while tackling pressing environmental risks. The twin digital and green transitions demand strategic responses with profound implications for industries, labour markets, and broader societal structures.
The retail sector stands at the forefront of these simultaneous transformations of the European economy. Retail represents the largest industrial ecosystem in the EU, accounting for 11.5% of value added, employing nearly 30 million people, and serving 450 million EU consumers on a daily basis (European Commission, 2024[1]). On average, these consumers spend one third of their household budget in retail shops. Due to such a central role in the European economy, the extensive interaction with consumers, and the substantial environmental footprint of their supply chain, retailers are uniquely positioned to influence and be influenced by the shifts towards digitalisation and sustainability. In other terms, the retail sector is a critical player in Europe's ambition to lead in these areas.
The retail sector is an important employer in Europe, meaning that these transitions will impact many workers. In 2020, retail trade accounted for 12% of the business economy (Eurostat, 2023[2]). Sales workers make up the bulk of occupations in retail and wholesale trade, at 41% (CEDEFOP, 2024[3]). Often, retail establishments serve as the first employer for young people, as well as those re-entering the labour market following a period of leave. For example, 62% of sales workers are women (CEDEFOP, 2023[4]). Already, labour shortages in the sector are a challenge – in a 2022 survey of over 500 business leaders across North America, Europe, Asia, and Australia, 63% of retail companies reported operating with a frontline employee deficit (Workjam, 2023[5]). While many of these jobs are low-paid and require relatively low levels of education, cross-country and cross-employer differences in retail job quality suggest there are ways to improve working conditions (Carré and Tilly, 2020[6]).
In recent years, the retail sector has experienced a profound transformation, driven by the emergence of digital technologies and markedly accelerated by the COVID‑19 pandemic. This process has also charted new courses for the future development of the sector, redefining how retailers operate and how consumers shop (Grewal, Roggeveen and Nordfält, 2017[7]; Ratchford et al., 2023[8]). The rise of e-commerce, digital payment systems, social media marketing, and many other innovations and technological advancements, have reshaped traditional business models, prompting traditional retailers to adopt multi-channel or omni-channel strategies (Verhoef, Kannan and Inman, 2015[9]; Ailawadi and Farris, 2017[10]; Gauri et al., 2021[11]). This shift has introduced a dual-edged scenario for the retail ecosystem, unlocking unprecedented growth opportunities for some actors while simultaneously presenting complex challenges and even existential threats to others. Digital platforms such as virtual marketplaces have expanded market reach and accessibility, leading to increased price competition and consumer choice (Brynjolfsson, Hu and Smith, 2003[12]; Goldfarb and Tucker, 2019[13]). However, the digital transformation also poses risks for physical stores and the broader concept of ‘high streets’, requiring retailers of all sizes to innovate strategically and adapt to changing consumer behaviours (Breugelmans et al., 2023[14]; Szocs et al., 2023[15]).
Shifting consumer preferences of retailers can also impact the evolution of the sector. Occupying a central role in the distribution of products and engaging directly with customers, they have the power to shape consumer behaviour (Bain & Company, 2022[16]). This might be done by setting stringent environmental standards for suppliers or by rewarding those who meet or exceed these benchmarks. This approach recognises different levels of ambition: some retailers may aim to minimize risk and comply with evolving regulations, while others may strive to go beyond minimum standards and build a reputation for excellence in this area. Remarkably, major retailers widely agree that the onset of the COVID‑19 pandemic increased the urgency of pursuing sustainability actions (McKinsey & Company, 2021[17]). In parallel, consumers in the EU seem to increasingly expect sustainability as a norm (EuroCommerce - McKinsey, 2025[18]), and digital tools might facilitate access to sustainability-related product information: visual clues on e-commerce websites (e.g., labels, ratings, filtering options), online marketplaces for second-hand goods, as well as new initiatives such as the Digital Product Passport (DPP) (OECD, 2025[19]). However, concerns have emerged about the reliability of sustainability information provided through digital tools and technologies, and especially through Generative AI tools which might provide unsupported or unverifiable claims (OECD, 2025[20]). This is also reflected in the OECD Recommendation on Consumer Protection in E-Commerce (OECD, 2024[21]).
The retail sector refers to the part of the economy that involves selling goods and services directly to consumers. Retail businesses often purchase products from manufacturers or wholesalers and then sell them to the public, either through physical stores (brick-and-mortar shops) or online platforms (e-commerce). This sector includes a wide range of businesses, from small independent shops to large multinational chains, covering products such as clothing, electronics, food and household items, as well as services like repairs and personal care.
One of the primary data sources used in this chapter is the European Labour Force Survey (EU-LFS), which does not directly identify workers in the retail sector in the data files available to the OECD. Instead, retail is part of the broader category “Wholesale and retail trade; repair of motor vehicles and motorcycles” (NACE Rev. 2, sector G). At least two-digit industry codes are required in employment data to isolate retail (G47) from wholesale (G46) and motor vehicle sales and repair (G45).
To address this issue, online job vacancy data is used to allocate employment across occupations from the aggregate sector G to its three subsectors. For example, job advertisements for shop assistants are more commonly associated with retail than with wholesale or motor vehicle repair. Therefore, the percentage of job ads for shop assistants in the retail sector serves as a proxy for the share of employment of shop assistants in sector G working in retail. By applying this method for each occupation in each region, and limiting it to a single period, known biases and limitations related to using online job postings to estimate employment across industries, locations, and time are minimised (Vermeulen and Gutierrez Amaros, 2024[22]). Annex 3.A provides further details on data and methods.
In this chapter, the term “overall business economy” is used to compare employment trends in the retail sector with those in other sectors. This category includes the retail sector and excludes agriculture, public administration and public services (e.g. education, healthcare), formally covering NACE Rev. 2 codes B to N (or those starting with the digits 05 to 82).
How big is the retail sector?
The Eurostat yearbook gives 12.7% of non-financial business economy in 2020, based on Eurostat national accounts data (Eurostat, 2023[2]) (Eurostat Table nama_10_a64_e).a Using the same data, retail sector employment share as percentage of the non-financial business economy decreased from 13.3% in 2015, to 12.7% in 2020, and to 12.4% in 2022. In terms of the business economyb used in this chapter, shares are 12.8% (2015), 12.3% (2020) and 12.0% (2022).
While the EU-LFS allows the calculation of the size of the retail sector in the business economy directly, the numbers will deviate from those in the national accounts. First, the national accounts data is based on various national data sources and country level methods. The sources may include the labour force survey, but also include others for the purpose of estimating the various indicators of the national accounts. Secondly, the retail sector employment in the labour force survey is estimated as described above. Therefore EU-LFS based estimates on the retail sector employment share are harmonised to those of the available national accounts data by scaling EU-LFS percentage to that of the national accounts at the national level. For countries where national accounts do not provide 2023 numbers yet, the adjustment figure for 2022 is used. The resulting estimate of the EU share of retail workers in the business economy in 2023 is 11.3%.
Notes:
a. The non-financial business economy is sectors B-J, L-N and 95, where sector 95 is repair of computers and personal and household goods.
b. The business economy is defined as B-N.
Comparable international statistics on employment in the retail sector are not always readily available, especially at the regional level and for different types of workers. This chapter presents new statistics on employment in the retail sector across regions, firms and worker characteristics using a novel approach that combines micro-data from the European Labour Force Survey (EU-LFS) with detailed data from online job postings. Box 3.1 provides additional background on this method and the identification of the retail sector in empirical sources.
Employment trends and a tightening labour market
Retail accounts for over 11% of employment in the EU business economy in 2023, representing around 17 million workers,1 with the share of employment varying significantly both between and within countries. In about two-thirds of EU countries with available data (18 out of 26), including the EU’s five most populous countries,2 the share ranges between 10% and 15% (Figure 3.2). No clear relationship is evident between a country’s income levels or geographic location and the share of retail employment. For instance, high-income per capita countries like the Netherlands and Luxembourg rank significantly above and below the EU average, respectively. Similarly, countries from Central and Eastern Europe appear on both ends of the distribution. In several cases, regional variations within countries are striking. For example, in France, Greece and Spain, the gap between the region with the highest share of retail employment and the one with the lowest exceeds 15 percentage points. In Belgium, Germany, Italy and Romania, the gap exceeds 10 percentage points. These differences potentially reflect the presence of diverse regional economies – tourism-heavy areas contrasted with those where farming and manufacturing play a more prominent role.
Employment share of retail sector in the overall business economy (B-N), 2023.
Note: EU represents the weighted (national) average among the EU27 (2020) with available data.
Source: Based on EU LFS, National accounts and Lightcast.
Regions with large cities do not always have a higher employment share in retail relative to regions without a large city. For instance, in Italy, Belgium, Denmark, Germany and Spain, regions with large cities are both above and below their national average. In Czechia, regions with large cities are above the national average in retail employment, but in Poland, such regions are below the national average.
Since 2015, retail employment in the EU grew by less than 0.5 percent per year, compared with more than 1 percent per year in other sectors. The business economy outpaced retail in all member states except Romania (Figure 3.3). About half of the observed countries experienced growth – either positive or negative – of less than one percentage point, and only two recorded an increase of over two percentage points. The number of countries with positive growth matched those with negative growth, with no clear patterns related to size or GDP per capita level. For instance, higher-income per capita EU countries, such as Denmark, the Netherlands and Finland, showed both growth and decline in retail employment rates. A discernible trend, however, is that most Central and Eastern European countries experienced a decline, while larger member states tended to show smaller changes, whether positive or negative.
Annualised employment growth rate by sector, 2015 until last year available (2022-2024).
Note: EU represents the weighted (national) average among the EU27. For DE, DK, ES, EU, LT, LV, NO, PT, RO and SE, last year is 2022. For AT, BE, BG, CY, CZ, EE, EL, FR, HR, HU, IE, IT, PL, SI and SK, last is 2023, for CH, FI, IS, MT, NL, last is 2024.
Source: Based on Eurostat table nama_10_a64_e.
Even with limited employment growth, hiring difficulties may be substantial in the retail sector, due to local economic trends and as skills needs change in the sector. A labour market tightness index measures the number of online job vacancies for retail in a region relative to total employment in the retail sector in the same region. This measure allows for comparison across regions within the same country. In larger countries with many regions, such as Germany, France, Italy and Spain, the index suggests that the tightness in retail in one region can be multiple times of that experienced in other regions (Figure 3.4). A distinction between regions with and without large cities does not suggest that labour market tightness is specifically concentrated in the most urbanised regions, mirroring the observation of Figure 3.2 where the most urbanised regions had both higher and lower retail employment shares relative to the national average. While the measure allows for some comparison on the relative tightness in retail across regions within the same country, data limitation make its use for cross-sector and cross-country comparison more limited. Box 3.2 discusses the index further and indicates that the use of online job portals for hiring in the retail (and wholesale) sector may be less frequently used relative to the business economy overall across countries.
One-third of retail and wholesale SMEs across seven OECD countries face labour and skills shortages, a rate that is similar in the wider business economy. An OECD 2024 survey across SMEs in seven countries, among which the EU members states Germany, Austria and Ireland, shows that about 35% of SMEs have faced labour shortages and around 30% have faced skills shortages among existing staff since 2022 (Figure 3.4). The average rate across the included seven countries is similar for the wholesale and retail sector and the wider business economy. Among the seven countries, Austrian and German SMEs cite labour (around 50%) and skills shortages more frequently, followed by Japanese SMEs. Among the EU countries, labour shortages tend to be a more widely experienced issue compared to skills and experience shortages among existing staff.
Labour market tightness in the retail sector relative to the overall business economy (B-N) in the same region, by country, 2023.
Note: Labour market tightness is calculated as the number of online job vacancies (sourced from Lightcast) relative to current employment in the sector (sourced from the EU LFS). To account for differences in the use of online job vacancies across and within countries, labour market tightness for the retail sector is expressed relative to that of the overall business economy in the same region.
Source: Based on EU LFS and Lightcast.
Percentage of respondents answering ‘Yes’ to: In the last two years, has … ever been a challenge for your company?
Note: Survey based on 1100 SMEs across listed countries.
Source: OECD survey on how SMEs use generative AI to address skill and labour needs, 2024.
Labour market shortages occur when firms are not able to fill open positions. As firms cannot hire the desired employees, labour shortages may impede economic growth and productivity, both for individual firms and the economy as a whole. Despite its importance for the monitoring of a region’s economic health, labour market shortages are difficult to measure since standard labour market statistics do not typically track job vacancies (and whether these are filled) in a consistent manner across time and countries. Throughout this note, labour market tightness is used as a proxy for labour shortages.
Methodology
Labour market tightness is calculated as the number of job vacancies over the number of employed persons in a given region and year. The measure is calculated for retail and the total business economy. The number of job vacancies comes from online job postings collected by Lightcast while employment data are derived from the European labour force survey.
This section presents labour market tightness for TL2 (or NUTS2) regions for the retail sector relative to the tightness in the overall business economy in the same region. Since the data quality of online job postings (i.e. how accurately it tracks all job openings in an economy) varies by country and over time, this section reports relative measures of tightness. Specifically, the results present the regional retail sector labour market tightness level relative to the region’s average level of tightness across the business economy. This approach only allows for comparisons of tightness levels between regions relative to their country’s average, rather than in absolute terms.
A cross-country or cross-sectoral comparison is hampered by the apparent more limited use of online job portals in the retail sector relative to that in other sectors. Across virtually all European countries, the number of online job postings relative to the number of postings recorded from other sources, such as business surveys, is much lower for the retail and wholesale sector compared to the overall business economy (Figure 3.6). Hence, the retail sector may also show a lower labour market tightness as measured through online job postings relative to the overall business economy.
Retail and wholesale intensity of online job ads over all ads relative to intensity in business economy, retail and wholesale tightness relative to total national tightness, 2023.
Notes: Values below one indicate that values for the respective indicator for the retail and wholesale sector are lower than that for the business economy (sectors B-N). Relative intensity of online job postings is the ratio of online job postings to all vacancies in retail and wholesale relative to the same ratio in the total business economy as measured by Eurostat Job vacancy statistics. Eurostat Job vacancy statistics does not allow for a breakdown between wholesale and retail sectors. The relative labour market tightness is the labour market tightness in retail and wholesale relative to the same measure in the total business economy. Estonia, Hungary and Latvia are excluded due to implausible values that are likely driven by limited sample sizes of the underlying data.
Sources: Based on Lightcast, European Labour force survey and Eurostat Job vacancy statistics by NACE Rev. 2 activity (jvs_q_nace2); OECD (2024[23]), Job Creation and Local Economic Development 2024: The Geography of Generative AI.
Retail stakeholders view the competition for talent as an increasing priority. Labour market experts and policymakers acknowledge the rising presence of “help wanted” signs in urban retail environments; however, they consider these shortages to be less severe compared to sectors such as healthcare and IT. Retail business associations, in contrast, emphasise that labour shortages are becoming a critical issue for the industry. This concern is framed within the broader context of challenges heightened by the economic recovery of the COVID-19 pandemic, including increased competition from e-commerce and emerging market retailers, rising regulatory requirements, escalating shop rents, and shrinking profit margins – all of which affect employment practices and the sector’s ability to remain competitive in the race for talent.
The retail sector may be using online recruitment tools less frequently compared to the overall business economy across European countries. Comparing the number of online job postings with vacancies reported from business surveys can serve as a measure of the sector’s digitalisation in recruitment (Figure 3.6, Box 3.2). Thus, the lower frequency of online job postings in retail, relative to the business economy in most European countries, suggests that the retail sector lags in the use of online tools for recruitment. Across 23 countries with available data the retail (and wholesale) sectors report a lower ratio of online job vacancies to all vacancies compared with the business economy. This gap exceeds 50% in 16 out of 23 countries with available data.
Retail stakeholders recognise that the limited use of online recruitment tools has been a key barrier to attracting talent. Traditionally, many brick-and-mortar shops have relied on local hiring methods, such as “help wanted” signs or word-of-mouth, due to their close ties to the community and limited resources. However, there is a growing shift towards online recruitment, driven by digitalisation across industries. As more retail businesses, including smaller players, adopt digital hiring tools, this trend is expected to expand, broadening the talent pool and improving access to candidates. Despite this progress, smaller retailers still face barriers like limited digital literacy and resources, which slow adoption and complicate efforts to attract and retain talent in a competitive market.
Changing job requirements and emerging skills gaps
Evolving job requirements, driven by increasingly digitalised business models, add to the challenge of recruitment. According to retail stakeholders, the adoption of digital and automated systems – such as online shopping platforms, automated checkouts and data-driven management of warehouses, orders and inventory – has increased demand not only for roles like IT specialists, data analysts and digital marketing professionals, but also for hybrid positions such as “Warehouse 2.0” workers who blend logistics and digital skills. This shift is reshaping the types of occupations most in demand, with both digital and logistics skills becoming more prevalent, potentially affecting the sector’s recruiting priorities.
Jobs that involve direct interaction with customers, i.e. “front-end” jobs, declined in all European countries in the retail sector. Between 2015-2022, the decline in employment in “front-end” jobs remained limited in EU countries, not exceeding one percentage point, in Czechia, Germany, Hungary, Italy, Lithuania, and Romania, while surpassing 10 percentage points in Estonia, France and Luxembourg (Figure 3.7).3 This trend provides further evidence of the shift in occupational demand within the retail sector, where front-end roles are becoming less dominant while back-end roles requiring digital expertise grow in importance.4
While around half of EU retail jobs remain front-end roles, this share varies significantly between countries, highlighting the importance of context-specific responses. The share of front-end roles ranges from three to more than six out of every ten retail jobs across Europe. No clear patterns emerge regarding the level of front-end jobs, as countries from the same macro-region or with similar income or digitalisation levels appear on both sides of the distribution, reinforcing the need for tailored solutions.
Percentage of employment in “front-end” jobs in retail, 2015-2022.
Note: “Front-end” jobs are defined as jobs that typically involve direct interaction with customers. The opposite occupations are “back-end jobs”. A list of occupations for front-end jobs is provided in Annex 3.B. EU represents the weighted (national) average among the EU27.
Source: Based on EU LFS and Lightcast.
Demand for advanced ICT skills in the retail sector remains lower than in other sectors in many countries. This demand is identified through mentions of specific keywords in the description of online job postings, which can be linked to advanced ICT skills, such as computer coding languages (Figure 3.8).5 Between 2019-20 and 2022-23, the gap in demand for advanced ICT skills in retail jobs narrowed or reversed relative to the demand in the business economy narrowed in 16 of the 27 EU countries with available data, while it widened in the other 11. In Slovenia, Denmark, the Slovak Republic, Poland and Latvia (in descending order of their 2022-23 levels), demand for advanced ICT skills in retail shifted from outperforming other sectors to lagging behind. The gap in demand for advanced ICT skills reinforces the digitalisation gaps highlighted by the lower share of online job postings (Box 3.2).
Front-end jobs in retail strongly value personal and customer skills and demand for such skills has risen since 2019. While the digitalisation of the sector increasingly requires advanced ICT skills, and front-end jobs represent a declining share, the remaining front-end jobs put higher value towards interpersonal skills. Skill needs such as “coaching clients”, “communicating with customers”, “maintaining interpersonal relationships”, and even “smiling”, are more likely to be found in front-end retail jobs than in other jobs in the total business economy. In 17 out of 27 EU countries with available data, such skills are 20% more likely to be found in retail front-end jobs than in other jobs in 2023 (Figure 3.9). In Sweden, Croatia and Czechia such skills are more than 50% more likely to be mentioned in retail front-end jobs. In 20 out of 27 EU countries, the use of keywords that refer to personal and customer skills has increased between 2019-20 and 2022-23.
Demand for advanced ICT skills among back-end jobs in retail, 2019-20 and 2022-23, difference relative to all occupations in the overall business economy (B-N).
Note: Advanced ICT skills as defined and operationalised in OECD (2022[24]). A list of occupations for back-end jobs is provided in Annex 3.B.
Source: Based on Lightcast.
Demand for personal skills in front-end jobs in retail, 2019-20 and 2022-23, difference relative to all jobs in the overall business economy (B-N).
Note: based on skill mentions related to "customer", "client", "smile", "Establishing and Maintaining Interpersonal Relationships". These keywords capture a variety of skills such as “council clients”, “coach clients”, “identify customer's needs” and “establish customer rapport”.
Source: Based on Lightcast.
Minimal educational requirements are generally lower for jobs in retail relative to those in the business economy. Retail tends to have greater demand for primary, secondary and post-secondary to short-cycle tertiary education and a lower demand for tertiary education compared to the overall business economy (Figure 3.10). These differences are more pronounced in smaller Central and Eastern European countries.6 In larger countries, such as France, Germany and Italy, the difference to the overall business economy in educational requirements across the levels is less than 5 percentage points, whether positive or negative.
Retail stakeholders are concerned about the reputational damage that lower skill requirements have caused for the sector. Business associations acknowledge that educational standards in retail have traditionally been lower than in other industries, reinforcing the perception that retail jobs require minimal skills. In response, they are actively working to change this narrative by raising educational standards. In recent years, there have been several initiatives aimed at collaborating with training providers and offering upskilling opportunities to the retail workforce, as further discussed in Section 3. Despite these efforts, stakeholders recognise that the sector continues to face a “race to the bottom” in some markets, where low entry barriers and competition from under-capitalised retailers drive down skill requirements and employment practices, prompting a broader question about the future direction of the sector.
Percentage point difference of job ads requiring the indicated educational level, between retail and the overall business economy, 2023, or average over 2021-2023 for selected countries.
Note: The chart shows, for each country, the relative difference in required education levels as reported in online job ads. Bars above zero indicate that higher education levels are more commonly required in retail sector job ads compared to those in the overall business economy, while bars below zero indicate the opposite. Due to small sample sizes, data from 2021 to 2023 is used for Estonia, Lithuania, Luxembourg, Latvia, Malta, Slovenia, Bulgaria, Cyprus, and the Slovak Republic. For Switzerland, data from 2022 and 2023 is used. For all other countries, only 2023 data is included.
Source: Based on Lightcast.
A wide demographic composition
Women account for 52% of EU retail jobs, against 37% in the wider business economy, and outnumber men in 17 of 26 EU countries with available data. Moreover, the share of female workers in retail exceeds that of the overall business economy in all countries (Figure 3.11). In none of the observed countries is the ratio below 8 women per 20 workers, while in four countries it exceeds 12 per 20. In all cases, the difference in female employment between the retail sector and overall business economy is at least 8 percentage points. The ratio between men’s and women’s share of employment in the retail sector falls below parity in countries where female workforce participation is high – such as Denmark, the Netherlands and Sweden– and in those where it is comparatively lower, such as Greece and Italy. The gap in women employment between retail and the total economy, which includes also sectors such as healthcare, education and public administration, which generally have a high female employment share, is generally much lower.
Stakeholders emphasised the crucial role women play in retail while acknowledging the challenges they face in advancing their careers. Although retail offers flexible work arrangements that appeal to women balancing family and other responsibilities, stakeholders expressed concern that women are often concentrated in lower-paid, front-line roles, that offer fewer opportunities for advancement into leadership or specialised positions. This highlights the need for targeted initiatives to promote career progression for women, including mentorship programmes, skills development and greater support for work-life balance. Additionally, they acknowledged that since 2021, with the recovery from the COVID-19 pandemic, the fact that more women exited the workforce, exacerbated by income support schemes, has made it harder to retain female talent. Nevertheless, the rise of back-end roles requiring digital skills presents an opportunity to create more diverse career paths for women, provided there is sufficient training and support to enable their transition into these areas.
Share of female workers in total employment, by sector, 2023
Note: EU represents the weighted (national) average among the EU27. The horizontal line is placed at 50% as a general reference benchmark of gender parity.
Source: Based on EU LFS and Lightcast.
Young workers account for 22% of EU retail jobs in 2023, three percentage points more than in the wider business economy. In 22 out of 26 EU countries with available data, their share of retail employment exceeds that of other sectors (Figure 3.12). In most countries, young workers account for 15% to 30% of the workforce in both retail and other industries, though in Denmark, the Netherlands, and Ireland their share in retail is between 35% and 45%, substantially higher than in the overall business economy.
Retail stakeholders shared varied perspectives on the involvement of young workers in the sector. While retail has traditionally attracted a higher proportion of young employees compared to other industries, stakeholders noted growing challenges in retaining young talent. Many young workers view retail as a temporary or transitional job, rather than a long-term career, which contributes to high turnover rates. However, stakeholders also pointed out that the rise of more specialised roles, such as digital marketing and data analytics, presents an opportunity to offer more appealing career paths to young workers, provided the right training and development programmes are in place to equip them with the necessary skills.
Share of young (15-29) workers, by sector, 2023.
Note: EU represents the weighted (national) average among the EU27.
Source: Based on EU LFS and Lightcast.
Foreign-born workers make up 13% of EU retail jobs, more than two percentage points below the wider business economy. This trend is consistent across Europe, with the gap remaining stable despite significant differences in the share of foreign-born workers between countries (Figure 3.13). In both Scandinavian countries (except Sweden) and Central and Eastern Europe, foreign-born workers tend to have a lower presence in the workforce across all sectors.7
On average across the EU, non-Europeans account for around two-thirds of foreign-born workers in both retail and other sectors, though their share varies significantly by country. In Luxembourg, Europeans make up a large portion of the workforce. A similar pattern is observed in Switzerland. For both countries, a substantial number of foreign workers are likely to be regional cross-border commuters from EU member states, resulting in high rates in the total foreign-born share of workers.
Stakeholders expressed mixed experiences regarding the potential to increase the involvement of foreign-born workers across different countries. In regions where a second language is widely spoken – such as English in parts of Western Europe – or in parts of Central and Eastern Europe, where Ukrainian workers can more easily adapt to local Slavic languages, migrant integration into the retail workforce has been more successful. However, retail stakeholders highlighted that language barriers and skill gaps remain significant challenges in other areas, particularly in rural regions or countries where migrants are less familiar with the local language. They also noted that the rising demand for back-end roles, such as logistics and digital inventory management, offers an opportunity to engage more foreign-born workers, provided sufficient training is available to address skill gaps.
Share of foreign-born workers, of which non-European, by sector, 2022.
Note: EU represents the weighted (national) average among the EU27. Some countries have a sizeable share of observations where workers status on foreign born is unknown, which may therefore underestimate the share of foreign born in the labour force.
Source: Based on EU LFS and Lightcast.
Part-time jobs account for 37% of all retail employment in 2023, 14 percentage points more than in the broader business economy. Part-time work is more common in retail in all but three European countries, with significant variation in part-time shares across the continent (Figure 3.14). This European average is driven predominantly by a few countries, including Germany, the Netherlands, and Austria, which have high part-time employment rates across all sectors, but notably more so in the retail. Also Sweden and Finland have substantial higher part-time rates in retail relative to the wider business economy.
Involuntary part-time work represents 5.6% of all EU jobs in retail and 3.2% in the total business economy. Involuntary part-time job rates are calculated based on the workers that are currently in a part-time job and express the desire to work more hours. In Finland, Luxembourg, Portugal, Spain, Bulgaria and Romania, about one third of workers in part-time job would be willing to work more hours8. Generally, a higher rate of part-time work does not indicate a higher share of involuntary part-time workers. However, where the gap between part-time work in retail relative to the business economy is relative wide, such as in Ireland, Denmark, and the Netherlands, there is also a noticeable gap in the share of involuntary part-time workers. In general, services sectors such as retail, but also accommodation and food sectors, and the arts and leisure sectors have a higher prevalence of involuntary part-time employment relative to other sectors (OECD, 2019[25]).
Share of employment in part-time contracts, total and involuntary, by sector, 2023.
Note: EU represents the weighted (national) average among the EU27. Involuntary part-time rates are measured as the share of workers who currently hold part-time contracts, and indicate to wish for more hours and are available to do so.
Source: Based on EU LFS and Lightcast.
Fixed-term contracts outnumber permanent ones across all European countries, both in retail and the wider business economy. While shares of employment on fixed-term contracts vary significantly between countries, the difference between retail and the wider business economy within countries is around 2 percentage points on average (Figure 3.15). Retail’s share of temporary employment exceeds that of other sectors in roughly half of the countries observed and is slightly higher on the EU average, where 15% of retail employees are on fixed term contracts. Besides the Netherlands, which is a clear outlier in its use of fixed-term contracts in both retail and the wider business economy, Belgium and Ireland have the largest gap for the retail sector, at 7 and 6 points difference, respectively.
Share of workers in fixed-term contracts, by sector, 2023
Note: EU represents the weighted (national) average among the EU27. * indicates low statistical certainty due to a small sample.
Source: Based on EU LFS and Lightcast.
Contracts of less than one year are more common in retail in half of the observed European countries (12), while longer contracts dominate in the others.9 However, the gap between contract types is wider in countries where shorter contracts are more common, compared to those where longer contracts prevail (Figure 3.16). Countries with a higher prevalence of longer contracts often also have a larger proportion of foreign-born workers. This could indicate that longer contract durations may play a role in attracting foreign talent, though further analysis would be needed to confirm this relationship.
Percentage point difference of contract duration of fixed term contracts in the retail sector relative to the overall business economy, 2023
Note: The chart shows, for each country, the relative difference in contract lengths between workers in the retail sector relative to those in the overall business economy. Bars above zero indicate that contracts are more commonly observed in retail sector jobs compared to the total business economy, while bars below zero indicate the opposite. The left panel includes countries where contract lengths of less than 12 months are more common in retail than in the wider business economy. The right panel includes the other countries. Country-contract length combinations that do not appear on the chart did not meet a minimum observation threshold that allow for publication. Bars with an asterisk indicate low statistical certainty due to a small sample.
Source: Based on EU LFS and Lightcast.
Retail industry stakeholders highlighted that flexible contracts offer valuable opportunities for the demographics most represented in retail, particularly women balancing family responsibilities and young workers seeking flexibility. They emphasised that most part-time work in the sector is voluntary and appreciated for its adaptability. However, stakeholders noted that improving employment conditions is constrained by broader market regulations, such as laws on shop opening hours. If shops are allowed to open 24/7, this inevitably impacts working hours, shifts, and overall worker conditions. Furthermore, they pointed out that retail operates in a highly competitive environment with narrow margins, limiting companies’ ability to improve contract terms and working conditions. Market competition, especially in a sector driven by consumer demand, remains a key factor influencing employment practices.
The retail sector in Europe offers a wide range of employment opportunities from entry-level positions to high-level management roles. With such breath of activities, this sector provides jobs for a diverse workforce, including independent shop owners and employees of multinational retail chains. As the green and digital transitions reshape consumer behaviours and expectations, the skills required of retail workers are evolving. This necessitates continuous upskilling and training, making the sector accessible not only to those entering the job market for the first time but also to individuals transitioning from other industries.
To maximize the benefits of these transitions, it is important to improve job quality, particularly for entry-level, client-facing roles. Enhancing job quality can lead to higher returns on skills investments, reduced turnover rates, and a greater appreciation for specialized knowledge across various branches of the sector. Given that the retail sector serves the entire population, its workforce often mirrors this diversity, underscoring the importance of inclusive and adaptive employment practices.
Stakeholders recognise that the predominance of SMEs in the sector poses significant challenges, particularly regarding investment in workforce development. With SMEs accounting for the majority of retail businesses, many lack the resources to provide substantial training or upskilling opportunities. The small size of these companies may pose a challenge to compete with larger firms in terms of salaries and benefits, making it harder to attract and retain skilled workers. With few exceptions where companies can collaborate on shared workforce initiatives, such as in the hospitality sector, retailers often operate in isolation, complicating efforts to raise the skill level of the sector’s workforce. This fragmented landscape raises concerns about the sector’s ability to evolve and adapt in an increasingly competitive market. This section outlines various policy examples drawing from EU member states and other OECD countries.
Changing skills needs: green, digital and consumer experience
The green and digital transitions are significantly reshaping consumer shopping habits and the skills required of retail workers. The green transition influences how retail businesses operate and how they account for the products they sell. This shift necessitates that workers in the sector develop a deeper understanding of the environmental impacts of different product varieties, enabling them to assist consumers in making environmentally informed decisions. As consumers increasingly prefer using online tools for their purchases, traditional retailers have adapted by establishing their own web shops or utilising online platforms. This trend suggests that potentially all brick‑and‑mortar stores could operate a concurrent web shop, if they do not already. However, to do this effectively and strategically, retail workers and managers need to acquire and continuously update their digital skills. This dual approach of maintaining physical stores while expanding online presence is crucial for meeting the evolving demands of the modern consumer.
Digital skills for e-commerce, marketing and customer service
As consumers increasingly prefer using online tools for their purchases, traditional retailers have also moved online, offering their own web shops or using platforms. This shift towards a more digital retail sector calls for skills that help workers manage e-commerce platforms effectively. Additionally, understanding data from online consumer behaviour and digital marketing campaigns is important. These skills enable workers to strategically respond to consumer demand, enhancing the overall efficiency and effectiveness of retail operations.
For existing small firms with brick-and-mortar shops, integrating a web shop can be challenging. An online web shop adds to the existing activities and the hours required to be present in the shop. However, various IT solutions are available for all types and sizes of shops. Running a web shop alongside a brick-and-mortar store is arguably easier now than it was several years ago. Still, small shopkeepers may need assistance to get started and understand the various options available to them.
Training programmes for the retail sector across Europe have adapted to meet the growing demand for digital and e-commerce skills. For example, the Bildungszentrum des Einzelhandels (BZE) in Hannover, Germany, offers training in managing e-commerce platforms, data analytics, and other digital tools. Similarly, the Fashion Retail Academy (FRA) in London, United Kingdom, provides training focused on fashion retail (Annex Box 3.C.2). Additionally, the pan-European Skills4Retail programme includes e-commerce in its training offerings (Annex Box 3.C.3). Retail Ireland Skillnet supports the entire sector, including small firms, helping them acquire the training needed to start in e-commerce (Annex Box 3.C.4).
In-person retail can offer services to customers that are not available online. The presence of online retail changes the character of in‑person retail, with customers seeking a personal experience in customer service and specialised product knowledge. For some shopkeepers, prioritising direct contact with customers may be a reason to avoid an online retail option. While consumers often buy online goods they know they want, retail shops may increasingly become places where consumers expect a richer client experience and seek guidance on their purchases. Therefore, deep knowledge of the products and strong social skills to interact with customers could become increasingly important for retail workers. Customer experience is a key component of the training offered by Retail Ireland Skillnet and the UK-based FRA (Annex Box 3.C.4 and Annex Box 3.C.2).
Sustainability in the retail sector
The retail sector can play a role in guiding customers towards more sustainable options. Shops act as curators of product choices, but customers can be very price-sensitive. With narrow margins and the risk of losing sales to other stores, including online competitors, retailers may feel limited in their ability to persuade customers that more sustainable options are better. While fostering a more sustainable and ethical consumer base also depends on broader societal developments, retail can contribute positively by advising customers on the best solutions and carefully curating their product offerings.
The issue of sustainability, from understanding supply chains to ethical considerations, is included in some skills training programmes across countries. BZE incorporates sustainability principles into its curriculum, teaching participants about environmentally responsible business practices and how to integrate them into retail operations (Annex Box 3.C.1). This focus on sustainability ensures that BZE graduates can meet the growing consumer demand for greener products and services, while helping businesses comply with evolving environmental regulations. Such training can be very specific to certain branches of the sector. For instance, the UK-based FRA includes knowledge on sourcing and processing textiles in its programmes (Annex Box 3.C.2). The EU consortium of Skills4Retail explicitly focuses on retail skills for the twin transition, with sustainability as a key objective for skills trainings (Annex Box 3.C.3).By integrating sustainability into its curriculum, the academy helps students and businesses stay ahead of regulatory changes and support consumer demands for eco-friendly products.
Better skills for workers in retail jobs
Upskilling and training are important in the retail sector because of its accessibility to individuals seeking their first job as well as those transitioning from other industries. While the green and digital transitions create a demand for specific skills, new entrants may also need to learn more general professional skills too. Additionally, the retail sector's broad scope, employing people in roles ranging from back-office administration to ICT, and from shop assistants to marketing professionals, means that the variety of potential training programmes and delivery formats is extensive.
School to work transition
For many younger workers, including those with lower levels of educational attainment, the retail sector offers accessible jobs. Apprenticeships are widely used in the sector and core to the skills development (e.g. Annex Box 3.C.1, Annex Box 3.C.4). This accessibility helps connect many younger people to the labour market. However, it also gives the sector an opportunity to provide further training to enhance workers' digital skills, business administration and management knowledge, and social skills for customer interaction. Additionally, branch-specific knowledge training on products may be beneficial to enable client-facing workers to offer appropriate advice to customers.
The retail sector's role in facilitating the school-to-work transition highlights the importance of comprehensive training programmes. These programmes could focus not only on immediate job requirements but also on broader skills that can support career development. By investing in such training, the retail sector can help young workers build a strong foundation for their future careers, while also improving service quality and customer satisfaction.
Short-term training programmes and longer degrees integrated with work allow workers with little formal education to acquire professional skills. For instance, the Fashion Retail Academy in London, UK, offers specialised training for the fashion retail industry. It caters to a wide range of students, from school leavers to those already working in the industry who are looking to upskill. Courses are available in full-time, part-time, and short-term formats, allowing students to fit their education around other commitments. This flexibility ensures that the academy remains accessible to a diverse student body, supporting career progression at different stages of an individual’s professional journey. Similarly, Retail Ireland Skillnet offers a variety of options, from short online courses to three-year degree programmes that combine work with studies (Annex Box 3.C.4).
Continuing training for all roles and levels and firms
Across Europe, numerous modular skills initiatives aim to provide training for all aspects of retail sector work. Many of these initiatives are short-term and modular, allowing workers and their employers to integrate the training around work schedules. Many combine classroom-based instruction with on-the-job training. In some cases, online courses offer additional flexibility, enabling workers to take training when it best suits them. Alongside courses specifically targeting the twin transition, various long-standing initiatives cover all aspects of retail business, including supply chain management, business administration, and advanced management levels. While such topics are typically provided by the formal post-secondary educational sector, integrating workers into sector-specific curricula offers an opportunity for those without degrees to attain higher-level educational qualifications.
Sector-wide initiatives, often publicly supported, help make training accessible to all types of workers and firms. Upskilling workers across the sector is a public good that benefits everyone and justifies sharing the costs across the sector or through public support. For instance, Retail Ireland Skillnet is a non-profit organisation supported by the national government. The European Social Fund has supported a skills initiative in Sweden (Annex Box 3.C.5), and the EU's Skills4Retail initiative supports vocational training in retail across several European countries (Annex Box 3.C.3).
This public support also allows for tailoring training to both large and small firms. For instance, stakeholder discussions in Sweden revealed that large companies prioritise training in leadership, customer interaction, and performance metrics, while smaller companies focus on the customer journey, service, and digital marketing. Many sector-wide skills initiatives, such as Retail Ireland Skillnet, emphasise how their curricula are created collaboratively with the various firm in the sector to meet diverse needs.
Retaining students and offering a structured learning programme can improve training completion rates and make employment in the sector more attractive. Some skills initiatives face challenges with training completion. For instance, online courses or other low-barrier entry initiatives may struggle to help students finish their courses. Moreover, the most common barriers for any worker, not just in retail, interested in participating in training are lack of time either due to family or work responsibilities (OECD, 2025[26]). While larger firms can often accommodate continuous learning for their employees, smaller firms and independent retailers may find it challenging to create the time and space for training. Some evaluations suggest that a more structured approach to skills training could better integrate it with other work tasks, favouring permanent initiatives over specific and short-term projects. From a worker's perspective, accreditation of training that is broadly recognised, such as through the European Qualification Framework, could incentivise students to complete their training.
Finding the right workers
As retail is often embedded in local communities, many smaller retailers may not use formal job portals to find their workers, relying instead on local connections. This may explain the comparatively lower use of online job postings in the retail sector relative to the rest of the business economy. Using local connections can reduce the costs of searching and screening candidates, but it may also lower the quality of job matching and reduce the chance to outsiders to enter.
Digital platforms are important tools for improving job matching, particularly in high-turnover sectors like retail. As retail businesses rebounded after the COVID-19 pandemic, they continued to face challenges in attracting and retaining talent due to evolving market needs. Platforms such as Mobilisationemploi.gouv.fr in France (Annex Box 3.C.6), a 2021 initiative, and Job Bank in Canada (Annex Box 3.C.7, which were adapted and strengthened post-pandemic, offer centralised job listings, enhanced search functionalities, and upskilling opportunities. These features make them especially valuable in addressing growing labour shortages across the economy. In retail, where high turnover is common and demand fluctuates during peak periods like store reopenings and holiday seasons, these platforms provide flexibility and efficiency in recruitment.
Digital job portals can also be a valuable source of data on the demand for specific skills and the retail sector's competitiveness in attracting workers. As a major employer in many areas, the retail sector can gain important insights into labour market dynamics across local economies. Information on the quality of candidates for specific job roles and their attraction to the retail sector compared to other jobs can complement the qualitative knowledge gained from discussions with employers.
Economy-wide labour market monitoring systems can help identify skills shortages and tailor workforce development strategies in retail. Across countries, public employment services have rapidly expanded their sector- and place-specific labour market intelligence services, using data on vacancies and registered job seekers. Such “skills Assessment and Anticipation” (SAA) are particularly useful to understand the skills shortages related to the green transition (OECD, 2023[27]). For instance, in the Netherlands (Annex Box 3.C.8), public employment services manage a large database of vacancies combined with information on job seekers and recent graduates to assess current and potential future skills and labour shortages. In Flanders, Belgium, a multi-level forecasting systems aims to monitor current and future skills needs across sectors (Annex Box 3.C.10). In Italy, regional labour markets rely on monthly business surveys for information on hiring trends across sectors in local labour markets (Annex Box 3.C.9).
Addressing job quality
Improving job quality can enhance the return on skills investments, reduce job turnover, and increase the appreciation of specialised knowledge across different branches of the sector. While the low entry barrier for some retail occupations can be beneficial for job seekers, it also facilitates the use of short-term contracts at minimum pay. At the same time, seasonal surges in retail activity require the sector to expand staff temporarily, and the opportunity for part-time work may be appreciated by some individuals. However, short-term contracts and high turnover rates make it challenging for employers to invest in employee skills, and workers may have little incentive to pursue training without the assurance of stable employment.
Across countries, sector wide agreements have aimed to improve job quality in the sector. Such agreements aim to do justice to flexibility required in the sector but improving the options for career progress of workers through longer-term contracts and integrated skills training. For instance, the UK post-COVID retail sector saw innovative measures, including mental health support, flexible work arrangements and improved leadership communication, aimed at retaining staff amidst widespread dissatisfaction (Annex Box 3.C.11). In Germany, the 2024 collective bargaining agreement emphasized wage increases and pension enhancements for workers (Annex Box 3.C.12). In the French food retail sector, collective bargaining agreements facilitated reforms that improved vocational training accessibility, particularly for SMEs and low-skilled workers, aligning training with market demands and career progression (Annex Box 3.C.6).
Ensuring workers personal safety
In the retail sector, particularly in front-end roles with frequent customer interactions, safety concerns have become increasingly significant. Industry stakeholders have identified these safety concerns as contributing to staffing shortages, making their resolution important to attract new workers and retain existing ones. Retail employees can often face verbal assaults and harassment from customers, creating a hostile work environment and deterring people from entering or staying in the sector. Harassment, a form of workplace violence by clients against shop assistants and managers, calls for preventive measures (Acquadro Maran and Varetto, 2021[28]).
Responding to this growing concern is a responsibility of local and national governments, but skills training can also help. National and local governments have stepped in to raise awareness and protect workers. Such responses can be locally led too. For instance, the city of Tokyo, Japan, has issued specific ordinances to address the issue (Annex Box 3.C.14). Retail Ireland Skillnet includes personal safety and situational awareness in its curricula to help workers develop the social skills needed to handle abusive or threatening situations (Annex Box 3.C.4). A EU platform that collects risk assessments tools from across the EU includes options from several EU member states for small shops to assess and manage the risk from possibly negative interaction with clients for their employees (Annex Box 3.C.15).
Servicing the whole population with a diverse workforce, providing employment opportunities to everyone
The retail sector serves the entire population, and its workforce often reflects this diversity. Women represent more than 50% of the retail workforce across European countries, and retail employs a substantial share of younger workers as well as those with a migrant background. The wide variety of occupations also allows people with diverse educational backgrounds to work alongside each other.
Tailoring recruitment, employment, and training to a wide range of individual needs can enhance the inclusiveness of the sector. Using digital and open recruitment instead of personal networks may help diversify the pool of potential candidates. Flexibility in work modalities, such as part-time work or remote work for back-office tasks, can support workers with other commitments or limitations. Various types of training, from small modular courses to on-the-job training, may be especially appreciated by those not suited for classroom-based or self-learning. For instance, among those benefiting from Retail Ireland Skillnet training, 55% were female and 19% were non-Irish citizens (Annex Box 3.C.4).
Social inclusion for specific groups can be achieved through sector-wide agreements. For instance, in the Netherlands, an agreement between social partners creates work placements for people with learning disabilities to participate in the labour market. With supervisory support and partial wage subsidies, the programme promotes the social and work inclusion of individuals who might otherwise be excluded from working society. Larger firms, particularly grocery stores and their franchisees of larger chains, are encouraged to participate in this programme and provide placement options.
The analysis relies on calculations based on the microdata from the European Labour Force Survey (EU-LFS), as it provides detailed information on different types of workers and, for many countries, a regional breakdown. However, the retail sector is not directly identified in the EU-LFS; instead, it is part of the aggregate category “Wholesale and retail trade, repair of motor vehicles and motorcycles” (NACE rev. 2, sector G). To specifically identify retail employment, at least two-digit industry codes are required: retail is G47, wholesale is G46 and motor vehicle sales and repair is G45.
This chapter uses the occupational codes to allocate shares of workers to the retail sector, with the shares derived from online job postings. The data for online job postings is sourced from the data provider Lightcast, which supplies vacancy numbers for each of the three two-digit subsectors in “Wholesale, retail and vehicles sales and repair”. This data is used to calculate the percentage of vacancies specific to retail for each country-region (TL2) and occupation (three‑digit code). The underlying assumption is that employment-to-vacancy rates are consistent across retail and the other two subsectors, meaning that the distribution of vacancies among these subsectors reflects without bias the employment share in each subsector. This implies assuming that there is no significant difference in job turnover or the use of online job postings for hiring (leading to different number of vacancies) across the three subsectors within the same country-region-occupation-time period. For some countries or regions, vacancy data does not provide sufficient data to calculate ratios of occupations across the subsectors at the regional level. In such cases, the regional occupational percentages are filled using national-level data. Additionally, for countries with insufficient national vacancy data, vacancy data from the previous and following years (2021 and 2023) was also used.10
To gauge the reliability of the retail employment indicators, two tests were performed. First, employment numbers for more aggregate sectors were compared. Eurostat provides employment numbers by region for the NACE sector G-I, which were replicated using microdata from the EU-LFS. This test demonstrates that the calculations in this chapter using the EU-LFS produce very similar estimates as those of Eurostat. Annex Figure 3.A.1 shows that the employment numbers for the macro-sector containing retail and for the total economy match closely. Although employment numbers may differ slightly in some regions, there is little evidence of sectoral bias. The share of employment in sector G-I relative to total employment closely matches between the Eurostat data and the OECD calculations in this chapter.
Note: Regional (TL2) employment counts and employment shares are compared between the OECD’s calculated numbers, based on EU-LFS microdata, and those reported by Eurostat, which also uses the EU-LFS microdata.
Source: Based on EU-LFS microdata, Lightcast and Eurostat table lfst_r_lfs2en2.
The second test compares the estimated employment shares with those available from national accounts reported by Eurostat. National accounts data provide employment numbers specifically for the retail sector, but they are based on country-specific methodologies and may include a variety of sources. Annex Figure 3.A.2 shows the comparison of employment in the aggregate sector G-I and in the retail sector specifically, as a share of employment in the business economy (B-N). For the aggregate sector, the EU-LFS-based numbers tend to suggest smaller employment shares than the national accounts data for several countries, while for the retail sector, all but two countries obtain higher employment shares using EU-LFS-based statistics compared to national accounts data. The estimates for the aggregate sector align closely between the two sources in seven of the reporting countries, but there are significant variations in others. For the retail sector, the deviation can be as large as ten percentage points for specific countries. For this reason, the retail sector employment the share in the business economy that are based on the LFS data are rescaled to align with the national accounts data.
Note: Each dot represents country estimates of employment shares for the aggregate sector G-I (left panel) and the retail sector (right panel). The share of employment for each sector, calculated based on microdata from the EU LFS, is plotted along the vertical axis. Sectors G-I are directly observed in the data, while the retail sector (G47) is estimated using Lightcast data, as described in the main text. Along the horizontal axis, the share of national employment according to national accounts is provided. Eurostat collects this data from country submissions, but countries can use various sources and methodologies to derive their employment statistics.
Source: Based on EU-LFS, Lightcast and Eurostat table nama_10a64_e.
Occupations in the retail sector at the four-digit level were sourced from Lightcast for all European countries and manually categorized as either front-end or back-end roles. Since the EU-LFS identifies occupations at the three-digit level, further aggregation was necessary. A three-digit occupation is classified as front-end or back-end if all its corresponding four-digit occupations share the same classification. If there is a mix of front-end and back-end roles within a three-digit occupation, it is classified as indeterminate.
The Bildungszentrum des Einzelhandels (BZE) in Hannover, Germany, is a prominent vocational training centre focused on advancing skills and professional development within the retail sector. Founded over 60 years ago, BZE provides high-quality, industry-aligned education and training programmes for individuals and companies, catering to both new entrants and experienced professionals. Its offerings range from apprenticeships to advanced qualifications, making it a key player in preparing the workforce for Germany’s dynamic retail landscape.
At the heart of BZE’s approach is its commitment to delivering vocational training that aligns closely with industry needs. The centre offers a wide variety of courses, from basic retail skills to specialised programmes in areas such as logistics, leadership and business administration. BZE’s curriculum is designed in close collaboration with industry stakeholders, ensuring that the content remains relevant and responds to the latest developments in retail, including technological advancements and changing consumer behaviour.
A key feature of BZE’s educational model is its dual system of learning, which combines theoretical classroom instruction with practical on-the-job training. This approach allows participants to immediately apply their knowledge in real-world settings, bridging the gap between theory and practice. BZE has developed partnerships with numerous retailers, providing its trainees with valuable workplace experience, while employers benefit from a workforce trained to meet their specific operational needs.
BZE’s offerings are diverse and inclusive, addressing the needs of different groups within the retail workforce. The centre provides apprenticeships for young people starting their careers, as well as advanced courses for mid-level managers and senior executives seeking to update their skills or specialise in new areas. The flexibility of the programmes allows participants to tailor their learning paths, choosing from full-time, part-time or modular courses depending on their schedules and career goals.
Beyond its focus on vocational training, BZE offers a range of professional development opportunities for businesses. Its corporate training services are designed to help companies enhance their operations by upskilling their employees in areas such as digital marketing, customer service, and supply chain management. These tailored programmes are customised to fit the specific needs of each organisation, ensuring that training outcomes translate into tangible business improvements.
The centre’s modern facilities and state-of-the-art technology contribute to its reputation as a leading institution for retail training. BZE utilises the latest educational tools, including digital learning platforms and simulation environments, to create engaging and effective learning experiences. These resources are particularly important in preparing participants for the increasing digitalisation of the retail sector, equipping them with the skills necessary to manage e-commerce platforms, data analytics, and other digital tools.
BZE’s focus on sustainability and corporate social responsibility is another crucial aspect of its training philosophy. The centre incorporates sustainability principles into its curriculum, teaching participants about environmentally responsible business practices and how to integrate them into retail operations. This emphasis on sustainability ensures that BZE graduates are well-prepared to meet the growing consumer demand for greener products and services, while helping businesses comply with evolving environmental regulations.
The Fashion Retail Academy (FRA) in London is a leading vocational education institution, offering specialised training in the fashion and retail industries. Founded in 2005 with backing from major fashion retailers and the UK government, the academy provides industry-focused education that prepares students for immediate employment in a fast-paced, competitive sector. The FRA’s programmes are designed to bridge the skills gap in retail, ensuring that graduates are equipped to meet the demands of modern fashion businesses.
At the core of FRA’s approach is its emphasis on practical, industry-relevant learning. The academy offers a range of courses, from diplomas to degree-level qualifications, all developed in close collaboration with retail leaders such as Arcadia, M&S, and ASOS. This partnership-driven model ensures that the curriculum is constantly updated to reflect industry trends, including the growing importance of digital skills, sustainability, and customer experience management.
FRA’s curriculum is tailored to the needs of the fashion retail sector, offering a blend of technical knowledge and practical skills. Courses cover a variety of subjects including buying and merchandising, visual merchandising, digital marketing, and retail management. The academy also places a strong focus on digital transformation, offering specialised programmes in e-commerce, data analytics, and omnichannel retailing. This ensures that graduates are not only proficient in traditional retail operations but are also prepared for the increasing digitalisation of the fashion industry.
One of the FRA’s distinguishing features is its emphasis on work-based learning. Many courses include work placements or internships with leading retailers, giving students hands-on experience in real-world settings. This approach provides students with valuable industry exposure and enhances their employability, as they graduate with both theoretical knowledge and practical skills. The FRA’s close ties with industry partners ensure that students have access to a wide network of potential employers, making it easier for them to transition into full-time employment.
The FRA’s flexible learning model caters to a wide range of students, from school leavers to those already working in the industry who are looking to upskill. Courses are available in full-time, part-time, and short-term formats, allowing students to fit their education around other commitments. This flexibility ensures that the academy remains accessible to a diverse student body, supporting career progression at different stages of an individual’s professional journey.
In addition to its academic offerings, the Fashion Retail Academy is heavily involved in supporting businesses within the fashion sector. The academy provides tailored training programmes for companies looking to enhance their workforce’s skills in areas such as leadership, customer service, and digital innovation. These corporate training services help businesses to stay competitive in an evolving retail landscape, where customer expectations and technological advancements are rapidly changing.
The academy’s modern facilities, located in the heart of London’s retail district, are another major asset. The campus is equipped with state-of-the-art classrooms, digital studios and collaborative learning spaces that reflect the environment of a modern fashion business. These facilities are designed to immerse students in a professional setting, allowing them to develop the practical skills needed for a successful career in fashion retail.
Sustainability is a growing focus within the FRA’s curriculum, reflecting the increasing importance of environmentally responsible practices in the fashion industry. Students are taught about sustainable sourcing, supply chain management and ethical consumerism, ensuring that they are prepared to meet the challenges posed by the shift towards greener retail practices. By integrating sustainability into its programmes, the academy helps students and businesses stay ahead of regulatory changes and consumer demands for eco-friendly products.
Launched in 2023, Skills4Retail is an EU-funded initiative aimed at tackling critical labour and skills shortages in the retail sector across Europe. Funded by Erasmus+ and Partnerships for Innovation, the programme supports the retail sector’s transition in three key areas: digital transformation, sustainability and resilience, collectively known as the “Triple Transition”. Its objective is to equip retail workers with the necessary skills to navigate rapidly changing industry demands. It is led by a consortium of 30 partners from 9 EU countries, including retailers, educational institutions and training providers.
The foundation of the programme is the Retail Skills Strategy, informed by a comprehensive Occupational Profiles and Needs Analysis. This research identified the essential competencies needed across various roles within the retail sector, shaping the design of the Vocational Education and Training (VET) programme. This strategy addresses both immediate and long-term skills gaps by ensuring that the workforce is prepared for current and future challenges.
Skills4Retail offers an extensive range of training programmes, designed to meet the diverse needs of the retail workforce. These programmes are delivered through online platforms, in-person workshops and on-the-job training, making them accessible to a broad spectrum of participants, from entry-level employees to senior managers. The training covers digital literacy, e-commerce management, customer service, sustainability in retail and crisis management. A modular format allows participants to progress at their own pace, catering to the varied learning needs of employees across companies of different sizes, from small retailers to large multinational corporations.
A central component of the initiative is the Reactive Training Programme, aimed at addressing immediate skills shortages in select EU countries, including Austria, Romania, Ireland and Hungary. This short-term, modular programme focuses on urgent areas such as digital marketing, e-commerce and sustainable retail practices. Designed to be flexible and responsive, the programme allows participants to acquire and apply new skills quickly, helping businesses to adapt to the rapidly evolving retail landscape, particularly in the aftermath of the pandemic.
Dissemination activities are a key part of Skills4Retail, aimed at raising awareness of the programme and promoting knowledge exchange. Through initiatives like the “Retail Talks” series, the programme brings together industry leaders, policymakers and educators to discuss the skills needs of the retail sector. Additionally, workshops, roundtables and publications help to spread the lessons learned from the initiative, ensuring that best practices are shared widely across Europe.
The adaptive nature of Skills4Retail is another defining characteristic. Running through 2024, the programme is designed to evolve in response to participant feedback and emerging industry trends. The Retail Skills Strategy will be updated periodically to reflect new technological advancements and sustainability regulations. Future plans include expanding the VET curriculum to cover a broader range of skills, ensuring that the retail workforce is not only prepared for current challenges but also equipped to handle future developments in the industry.
Source: https://skills4retail.eu/.
Retail Ireland Skillnet, a workforce development initiative within Ireland’s retail sector, is part of 70 Skillnets established by the government to provide tailor-made training for companies across selected industries. Managed by Retail Ireland, the Skillnet business network that supports firms operating in the retail sector, this initiative focuses on upskilling employees at all levels, ensuring the sector has access to a skilled and adaptable workforce to employers’ needs. Launched in 2000, the initiative targets the evolving needs of a sector becoming increasingly knowledge-intensive due to advances in digital technology and consumer preferences for e-commerce that generated a more competitive retail environment.
Collaboration with industry stakeholders is a key feature of the initiative. Retail Ireland Skillnet partners with industry leaders, trade associations and government bodies to ensure that its training programmes are aligned with national skills development priorities. Thus, the initiative tailors its training offerings through a strategic process that includes preliminary research and a partnership-driven “training needs analysis” to assess specific sector requirements. This ensures courses are practical and directly applicable, designed by retailers for retailers, maximising Retail Ireland Skillnet’s impact on the sector’s overall performance. Retail Ireland Skillnet has also been instrumental in addressing the digital skills gap within the sector. As more retailers shift towards e-commerce and online services, the initiative has expanded its focus on digital literacy, equipping employees with the tools needed to navigate the digital retail environment.
At the core of Retail Ireland Skillnet is a comprehensive approach to training that addresses key retail areas such as customer service, digital skills, management and leadership. The initiative’s programmes is diverse, both in terms of length and skills focus, ranging from apprenticeships, certified practices, degrees and workshops, developed and delivered in collaboration with the Atlantic Technological University Donegal.
The 2-year apprenticeship in retail supervision is Retail Ireland Skillnet’s stand-out program, designed to attract and retain talent by offering training as a key component of employment contracts. During this apprenticeship, the retail employee continues to work full-time whilst gaining qualification, focusing on applying knowledge in real-world scenarios, stimulating idea generation, and fostering workplace innovation. The program is aimed at both existing and aspiring retail supervisors and full-time retail employees.
Retail Ireland Skillnet also provides the Retail Practice Occupational Qualification program. This is a certified program conducted in the workplace, equipping frontline employees with essential skills in key retail sectors. Since its inception in 2005, this program has enabled thousands of frontline workers to gain the skills and confidence needed to progress in their careers. This certified practice entails workplace-delivered modules using a train-the-trainer approach to delivery of content and a flexible timing with modules delivered directly in the workplace. The practice has proved effective in improving performance and productivity, increasing employee retention, enhancing employee engagement and satisfaction and increased customer service and sales.
The Bachelor of Business in Retail Management Practice is a 3-year program, made of 19 days per year, specifically designed by Retail Ireland Skillnet to equip retail employees with practical skills, knowledge, and competencies that are crucial for effectively managing in a retail environment. The programme is centered around workplace improvement, which aims to bridge the gap between theoretical learning and practical implementation. Being primarily designed for current or aspiring retail managers, this degree programme is intended to accommodate the retail calendar, ensuring that learners can balance their work and study commitments.
Retail Ireland Skillnet finally organizes specific workshops designed for learners who can commit online or in-person from few hours to 2 days maximum of learning. These workshops include retail security & loss prevention, cyber security, personal safety & situational awareness and retail customer experience among the others.
Funding for these programmes is robust, supported by both government grants and industry contributions. Apprenticeships are notably cost-effective for employers, fully funded by a EUR 4 000 government grant, while degree programmes and short courses receive substantial subsidies. This financial strategy underpins a budget of EUR 2.5 million for Retail Ireland Skillnet, which includes contributions from national and EU sources.
The initiative successfully engages a diverse range of participants, evidenced by the 1 500 learners involved in 2024 across various programs. This includes a balanced representation of gender (55% females) and nationality (19% non-Irish), highlighting the broad appeal and inclusivity of the training provided. The 2024 apprenticeship program alone saw 167 new starters in its first year, registering a consistent growth compared to the 2021 figure of 115 starters. In 2024, 110 students who started the programme in 2023 progressed into Year 2, compared to the 79 students who commenced in 2021 that progressed to Year 2 in September 2022. The apprenticeship registered 100 expected graduates in 2024, compared to the 62 graduates from the 2021 cohort, showcasing the increasing interest towards the program and its scalability in terms of results.
Retail Ireland Skillnet has demonstrated a significant impact on the retail sector in Ireland through its comprehensive training initiatives. A key feature of its success is the ability to conduct detailed impact analyses, particularly through cohort-level studies of its apprenticeship programmes. While other practices, e.g. workshops, are too short and multifaceted to run cohort-level studies, apprenticeship impact studies provide valuable insights into the effectiveness of training, allowing Retail Ireland Skillnet to refine and tailor its offerings to better meet industry needs.
As part of apprenticeship evaluation studies, Retail Ireland Skillnet evidence how firms are increasingly offering learning & development (L&D) initiatives and upskilling to become more attractive for potential employees and retain the existing ones. Therefore, Retail Ireland Skillnet offers solid evidence on how L&D is becoming a key factor to companies’ success and resilience.
The "Competence Boost for Commerce" initiative, orchestrated by the Swedish Retail and Wholesale Council, exemplifies a collaborative approach to enhancing the skills landscape in the retail and wholesale sectors. This initiative garners support from an inclusive mix of stakeholders, including employees with academic education, cooperative employers, both blue-collar and white-collar workers, and Swedish Commerce, showing a robust governance model that fosters inclusive cooperation. This aligns closely with our recommendation to establish a new social pact for retail sector resilience and growth based on the cooperation of all relevant social parties involved.
The main goal of the initiative is to unite Swedish labour market participants engaged in the retail and wholesale sectors, aiming to strengthen the sector’s competitiveness and provide good conditions for employees. The Council’s structure comprises four main divisions to deliver its objectives: Occupational Health and Safety, Research & Development, the Competence Committee, and the Economic Council of Retail and Wholesale.
In particular, the work of the Competence Committee is devoted to encouraging and enabling more people to establish themselves and develop within the fields of retail and wholesale. Since 2019, the Competence Committee has developed the "Competence Boost for Commerce," a competence development program for commerce companies comprising 10 training modules with a focus on the digitalization of commerce and teacher training based on peer-to-peer learning. This program excels in mapping out critical skills and competencies needed to navigate the changing retail landscape, through a concerted effort involving all relevant parties, ensuring that the outcomes are deeply aligned with industry needs.
A peculiar aspect of the Competence Boost for Commerce initiative is the close dialogue between employers and employees – during four half-day workshops, each gathering 10-50 entrepreneurs and employees – that produced an inventory of competence needs for the retail and wholesale sectors. This resulted in a categorization and overall formulation of competence needs, with a final validation from 15 experts. The initiative went further with the formulation of sub-qualifications including knowledge, skills, responsibility, and autonomy for each. This process led to the formulation of educational goals based on the sub-qualifications identified. The identification of qualifications and sub-qualifications for each job led to the structuring of training programs, finally issued by the Swedish Retail and Wholesale Council.
Subsidized by EU co-financing, the initiative stands out for its accessibility, ensuring that there are no barriers to participation and making it a cornerstone for professional development in retail. From 2019-2022, the training program encompassed critical areas such as digital transformation, customer service excellence, and strategic management, preparing workers to excel in a rapidly evolving marketplace.
The initiative has demonstrated tangible success, engaging over 1 616 unique participants in peer-to-peer learning setups, which enhance practical application and retention of skills. From the success of this training initiative, the Council developed a curriculum for upper secondary vocational education and other projects that stemmed as ripple effects of the main initiative. From the analysis of the training outputs, the Council concluded that large companies demand more formation in leadership, customer interaction, and key performance indicators, while small companies prioritize customer journey, customer service, and digital marketing. Also, the Council highlighted more difficulties in reaching out to and prioritizing training for small companies compared to larger ones, which required more anchoring at the highest level to run the trainings. The main message stemming from the Council’s output analysis is that most companies in the retail sector are in demand for skills training, however, they lack a structure for the competence development of existing staff and are highly dependent on project funding.
Structured surveys play a crucial role in tailoring the initiative, collecting comprehensive data on competences across various retail roles throughout Sweden. This approach not only helps in customizing training programs but also aids in the strategic planning and policymaking within the retail sector.
By merging structured feedback with adaptive learning frameworks, the Competence Boost for Commerce initiative serves as a model for targeted upskilling, driven by a clear vision to support sustainable growth and resilience in the retail industry.
Source: https://handelsradet.se/
Mobilisationemploi.gouv.fr, a French government platform launched in May 2021 in response to the COVID-19 pandemic, has emerged as a key tool for improving job matching in the retail sector. Designed to address the acute labour shortages caused by the economic downturn, the platform connects job seekers with employers, particularly in industries like retail, which saw a high demand for workers as the economy began to recover.
The platform simplifies the recruitment process by centralising job offers from employers across France, offering a quick and accessible way for job seekers to find opportunities in the retail sector. The system is integrated with national employment services, providing a wide reach and ensuring that both employers and job seekers benefit from a streamlined job-matching process. By bringing together a variety of job offers in one place, the platform reduces the time and effort required for businesses to fill vacancies, particularly for entry-level retail positions where turnover is high.
Mobilisationemploi.gouv.fr also prioritises flexibility and responsiveness, allowing job seekers to search for positions by region, sector, or contract type. This adaptability is particularly useful for retail, where roles often vary widely in terms of required skills and working conditions. The platform’s interface is user-friendly, making it accessible to a broad range of users, from low-skilled workers to experienced professionals looking for managerial positions in retail.
One of the platform’s key features is its ability to quickly adapt to changing labour market conditions. During the pandemic, retail was one of the sectors hit hardest by fluctuating demand and operational restrictions. Mobilisationemploi.gouv.fr played a crucial role in ensuring that retailers could quickly find employees, particularly during periods of high consumer demand, such as the reopening of stores and the holiday season. This responsiveness helped retail businesses maintain continuity and service levels in a volatile environment.
The platform also fosters collaboration between government services, training providers and retail businesses. Employers can easily list vacancies, and the government facilitates connections between job seekers and open positions, creating a more coordinated effort to address retail labour shortages. Additionally, the platform integrates with training initiatives, allowing job seekers to access information on upskilling opportunities relevant to the retail sector, thereby improving their employability and long-term career prospects.
The Canadian Job Bank platform, operated by the federal government, plays a critical role in matching job seekers with employment opportunities across various industries, including retail. With a high turnover rate and an ongoing demand for roles such as sales associates, cashiers, and store managers, the retail sector benefits significantly from this platform’s user-centric approach to job matching.
One of the standout features of Job Bank is the Job Match function, which simplifies and speeds up the hiring process. Job seekers create detailed profiles that include their skills, education, work experience, and employment preferences. The system then uses advanced algorithms to match them with available jobs that fit their qualifications. Retail employers can also use the platform to search for and view these profiles, selecting candidates whose experience aligns with their needs.
The platform’s matching algorithms offer flexibility, allowing users to adjust the level of precision in their matches. Job seekers can switch between "default" and "strict" matching settings, with the latter filtering jobs more closely aligned with their profile, reducing irrelevant suggestions. This is particularly helpful in retail, where varying levels of experience are required depending on the role. For example, a store manager may need prior leadership experience, while entry-level roles may prioritise soft skills like communication and customer service.
Job Bank goes beyond basic job postings by offering job seekers tools to enhance their employability. The platform includes features like automatic resume creation based on profile information, which ensures that candidates have professional, ready-to-use resumes when a match is found. For retail workers, who may not always have formal CVs, this feature helps ensure a smoother application process.
Additionally, Job Bank integrates with career planning resources and vocational training programmes, allowing job seekers to improve their skills. This is especially useful for the retail sector, where digital skills (such as e-commerce management) are becoming increasingly valuable. By linking job seekers to relevant training opportunities, Job Bank helps them stay competitive in a market that is rapidly embracing digital transformation.
For employers in the retail sector, Job Bank provides a reliable and accessible way to reach a large pool of potential candidates. With over 300 000 employers recruiting through the platform, retail businesses can post vacancies, view job seeker profiles, and even invite candidates to apply directly, streamlining the hiring process. The platform’s centralised nature ensures that employers can efficiently connect with candidates who possess the right skills, reducing recruitment times for high-demand roles like seasonal workers during peak shopping periods.
Retail employers also benefit from the system’s ability to automatically filter and rank candidates based on compatibility. This helps small and medium-sized retail businesses, which may lack dedicated HR teams, efficiently identify top talent without spending excessive time on manual searches.
During the COVID-19 pandemic, the platform proved essential in supporting the retail sector’s hiring needs. As consumer habits shifted towards e-commerce, many brick-and-mortar retailers required staff with digital skills to manage online orders, logistics, and customer service. Job Bank adapted by prioritising job postings in these areas and linking job seekers with digital upskilling opportunities, ensuring the workforce remained agile and capable of meeting new market demands.
Job Bank has become an indispensable tool for job matching in Canada’s retail sector. Its comprehensive features, from flexible matching algorithms and resume creation to employer-friendly recruitment tools, make it easier for both job seekers and retail businesses to connect efficiently. By integrating career support and training opportunities, the platform not only fills immediate vacancies but also helps future-proof the retail workforce by fostering continuous skills development. Through this initiative, Canada’s retail sector remains competitive, adaptable, and capable of meeting the evolving needs of the labour market.
Source: https://www.jobbank.gc.ca/home.
The Dutch public employment service publishes an online “Labour Market Tightness Indicator,” offering real-time insights into labour market dynamics across various sectors and regions. Updated regularly, this tool uses job vacancy rates and unemployment figures to calculate the tightness ratio – the number of job vacancies per unemployed worker. A higher ratio indicates a tighter market, with fewer available workers and increased competition among employers, while a lower ratio suggests less competition for jobs.
This tool is essential for Dutch policymakers in identifying areas needing intervention, helps employers understand the competitive landscape for attracting talent, and guides job seekers towards areas with more opportunities. Accessible through the werk.nl dashboard, the Labour Market Tightness Indicator promotes transparent labour market analysis and supports balanced economic development across different regions and industries.
The Dutch monitoring system also includes an “Indicator of Vacancies by Sector,” provided by Statistics Netherlands (CBS). Introduced in the wake of the COVID-19 pandemic, this tool offers real-time insights into job vacancies across different economic sectors. By tracking these vacancies, the indicator directly measures labour demand within specific industries, highlighting sectors experiencing growth and those facing potential labour shortages.
The CBS indicator is particularly useful for businesses, policymakers, and analysts, helping identify employment demand trends and enabling proactive responses to market changes. For example, a sudden rise in vacancies in a given sector could signal a booming industry in need of rapid workforce expansion, while a decline might suggest contraction or increased automation. This sector-specific data not only addresses immediate labour market mismatches but also supports long-term economic planning for training and education to meet future labour market demands. Accessible through the CBS website, this tool is invaluable for anticipating and responding to sector-specific labour shortages.
The Autonomous Province of Trento has established a comprehensive system for monitoring local labour market trends, drawing on a combination of national surveys, local firm data and real-time reporting. This approach allows for timely identification of labour shortages and supports targeted policy responses.
At the core of this system is the Excelsior survey, a national tool managed by the Italian Chambers of Commerce. Conducted monthly, the survey collects data from over 500 000 firms across Italy, providing insights into labour market demand, recruitment challenges and anticipated employment trends. For Trento, this national data is crucial in identifying regional labour shortages, particularly by sector, and shaping workforce development strategies in response.
In addition to the Excelsior survey, the Trento Chamber of Commerce conducts quarterly economic surveys to assess local business conditions. These surveys capture key indicators such as turnover, employment changes, and business sentiment. The flexibility of the survey design allows it to adapt to emerging trends, such as teleworking in the aftermath of the COVID-19 pandemic outbreak, ensuring that labour market monitoring remains relevant to current economic realities.
The Trento Agency for Labour plays a central role in real-time monitoring through the mandatory comunicazioni obbligatorie system. Employers are required to report hirings, terminations and contract changes, enabling the Agency to generate detailed monthly reports on employment flows. This data is disaggregated by sector, contract type, gender and age, offering a granular view of workforce dynamics across the province. The real-time nature of this data ensures that labour market shifts can be tracked as they happen, allowing for more immediate interventions where needed.
The Provincial Institute of Statistics (ISPAT) complements these efforts by focusing on employment among Trentino residents, whether they work within or outside the province. This dual perspective – tracking jobs within Trento and the employment status of its residents – provides a comprehensive view of local labour market conditions.
By integrating multiple data sources, Trento’s system enables a detailed assessment of labour shortages and skills mismatches dynamics. By doing so, Trento's integrated system continuously monitors labour market trends and recruitment challenges, identifying sector-specific labour and skills shortages. It provides policymakers with real-time data to optimize workforce planning and policies, enhances coordination between public institutions and social partners for targeted responses, and anticipates future labour market shifts and skills mismatches for strategic planning. Ultimately, it supports economic resilience by aligning workforce development with evolving industry needs.
This approach has been particularly effective in identifying vulnerable sectors and informing targeted policies, resulting in positive outcomes such as recruitment campaigns and specialised training programmes. For example, Trentino launched the “Trentino for Talent” initiative to address local skills shortages in high-demand sectors like engineering and IT, leveraging insights from its monitoring system. Jointly run by Trentino Sviluppo and the Labour Agency, the project combines targeted marketing with job matching services. Since its launch in February 2023, the project has attracted 745 applications and facilitated the hiring of 68 candidates by mid-October 2024, effectively bridging local skills gaps and boosting the region’s competitiveness.
The Flemish skills forecasting framework is an innovative approach designed to generate valuable skills intelligence, which informs labour market policies across various levels in Flanders. This framework addresses the pressing need for aligning education and training with the evolving demands of the labour market, helping stakeholders at regional, sectoral, and business levels anticipate and prepare for future skills requirements.
Structured across three levels – macro, meso, and micro – the framework tailors its insights for different target groups, including citizens, companies, intermediaries, and sector organisations. At the macro level, the Government of Flanders has commissioned a comprehensive labour market projection model to analyze labour trends, thereby enabling policymakers to adopt proactive measures. This model, developed by KU Leuven and scheduled for completion by 2026, leverages both data-driven projections and qualitative inputs to provide insights into future skill demands across occupations and sectors.
On the meso level, Strategic Skills Forecast (SCOPE) projects, funded by the European Social Fund Plus (ESF+), delve into specific skills requirements for various sectors, clusters, and innovations, including for retail. These projects establish partnerships among stakeholders in education, training, business, and innovation, aiming to address local skill needs. Using the VLAMT methodology, SCOPE projects generate actionable insights and culminate in action plans that commit partners to addressing identified skills gaps. This component is particularly significant for Flanders, where industries struggle with labour shortages and require targeted upskilling to navigate economic transitions, such as green and digital shifts.
At the micro level, skills forecasting aids businesses through Competence Checks, which support SMEs in aligning their workforce capabilities with market needs. Through these ESF+-funded projects, SMEs receive tailored guidance to map skills requirements, thus fostering proactive HR strategies. This initiative is currently operational and aims to reach over 600 SMEs by the end of 2024, helping them build resilience in a rapidly evolving labour market.
The impact of this framework has been substantial. Macro-level projections provide occupational and sector-specific forecasts, assisting policymakers in designing relevant labour market interventions. Since 2013, 27 SCOPE studies have produced skill projections that underpin the development of new training programs and curricula, resulting in 57 courses launched in 2023 alone. These insights are also used by sectors to update the Flemish Qualification Framework, ensuring occupational qualifications remain relevant. Though the Competence Checks are ongoing, they have already shown promise in enhancing SMEs’ capabilities to address future skill needs.
For other regions, the Flemish case offers valuable lessons. Its multilevel approach ensures that skills forecasting can cater to a range of stakeholders and objectives, creating a more targeted and effective system. Additionally, the emphasis on partnerships in SCOPE projects fosters a collaborative environment that drives meaningful change within sectors. By focusing on the impacts of digitalisation, new technologies, and sustainability, the framework is able to address long-term skill needs across diverse industries. Going forward, expanding the framework into a skills observatory with a unified skills language could enhance its impact, creating an integrated platform for skills intelligence that other communities could adapt to foster resilience and innovation in their own labour markets.
In the wake of the COVID-19 pandemic, UK retailers encountered significant workforce retention challenges, as 21% of retail employees expressed intentions to leave the industry. In response, retailers introduced several initiatives to improve working conditions and address key concerns among employees.
One prominent initiative involved enhancing mental health support. Many companies saw a sharp rise in mental health issues, with over 80% of employees reporting a decline in well-being. In response, managers were given mental health training to help address these issues. Retailers partnered with external organizations to provide support services, creating open environments where employees could discuss personal challenges without fear of judgment. This helped boost employee morale and foster a more supportive workplace environment.
Financial well-being also became a focal point, as rising living costs put additional pressure on employees. Some companies introduced financial support measures, such as one-off payments or access to financial planning services, to help employees manage personal budgets. These financial interventions were aimed at alleviating stress caused by the cost-of-living crisis, which had worsened in the wake of the pandemic.
Another critical area was the implementation of flexible working arrangements. Companies in sectors like logistics and distribution introduced more flexible hours and remote work options, which allowed employees to better manage their work-life balance. These measures were particularly effective in addressing the needs of workers with caregiving responsibilities, contributing to improved job satisfaction and retention.
Retailers also focused on addressing the rise in customer abuse, a growing problem since the pandemic. Staff were trained on how to handle difficult interactions, and technology like self-service checkouts was expanded to reduce direct confrontations with customers. This helped alleviate the emotional strain on frontline workers and improved their overall work experience.
In addition to these measures, leadership within many companies improved communication with staff, ensuring that employees felt heard and valued. Regular feedback sessions and transparent decision making processes were introduced to build trust between employees and management, further strengthening workforce retention.
Sources: https://www.retailtrust.org.uk/news/one-in-five-retail-workers-plan-to-quit-the-retail-industry/1112.article; https://brc.org.uk/insight/content/monitors/retail-jobs-report/reports/retailjobsreportdec21/; https://www.cipd.org/globalassets/media/knowledge/knowledge-hub/reports/2024-pdfs/8614-lmo-spring-report-2024-web.pdf
In 2024, after more than a year of complex negotiations, a landmark collective bargaining agreement was reached between Ver.di, one of Germany’s largest trade unions, and retail sector employers, represented by the German Retail Federation (HDE). This agreement marked the conclusion of a challenging process involving dialogue, strikes and compromise, and secured important financial and job security benefits for retail workers.
The central aspect of the agreement was the wage increase for full-time and part-time employees, phased over three years. This was a key victory for Ver.di, which had advocated for substantial wage hikes to address inflation and the rising cost of living. Retail workers saw their wages rise by 5.3% in October 2023, followed by further increments in the following years, ultimately amounting to an approximate EUR 400 increase per month for full-time staff. Employers, while agreeing to these demands, ensured that the phased implementation allowed them to manage costs effectively without compromising the sector’s competitiveness.
Employers played a critical role in shaping the final deal, particularly in securing the long-term viability of the agreement. Their focus was on maintaining a balance between improving workers’ conditions and ensuring the financial stability of businesses in a sector still recovering from the economic impact of the COVID-19 pandemic. To this end, the inclusion of a one-off inflation compensation bonus, a common feature in recent agreements, was a key compromise. This EUR 1 000 payment provided immediate relief to workers without embedding permanent wage increases that could have destabilised smaller retailers.
In addition to wage increases, the agreement enhanced pension contributions, with a 40% rise in the collectively agreed pension scheme. This was a significant achievement for both parties, as it not only improved the long-term financial security of workers but also addressed employers’ concerns about providing meaningful, sustainable benefits.
Dialogue and compromise were at the heart of the 2024 negotiations. While Ver.di’s advocacy for wage increases and better working conditions was vital, the role of employers in negotiating a phased, sustainable agreement ensured the sector’s stability. The agreement demonstrates the effectiveness of Germany’s collective bargaining model, where both unions and employers engage in productive dialogue to reach solutions that benefit both workers and the industry.
Collective bargaining played a pivotal role in the reform of vocational training and the improvement of working conditions in France’s retail sector, particularly following the implementation of the Bill for the Freedom to Choose One’s Professional Future (Law n° 771-2018). This law aimed to transform the vocational training landscape, making it more adaptable to business needs, especially for SMEs, while enhancing access for young and low-qualified workers. The 2021 collective agreement in the food retail sector, the Convention collective nationale des métiers du commerce de détail alimentaire spécialisé, further built on this reform, aligning training policies with sector-specific requirements.
The 2018 law was a landmark in France’s labour market reform, aimed at standardising apprenticeship funding and broadening the scope of vocational training to ensure the system was more responsive to the evolving demands of the economy. By facilitating greater access to training, particularly for SMEs and targeting young, less-qualified workers, the law sought to address key skills gaps while improving inclusivity in the workforce. A key innovation was the creation of France Compétences, a central agency overseeing training governance, ensuring quality, regulating prices and balancing funding across sectors. The introduction of the Personal Training Account, shifting from hours to euros, made training more accessible via a digital platform, especially for SMEs with limited resources. This empowered employers and employees to shape training programs aligned with market demands, fostering a more dynamic and adaptive labour market.
In 2021, the food retail sector expanded on the 2018 law with a collective agreement specifically tailored to the needs of its diverse, often low-skilled workforce. This agreement aimed to improve access to vocational training, particularly for SMEs, and linked training programs directly to career progression, job security and better working conditions. Central to the initiative were work-study programmes (Pro-A), which provided an effective pathway for integrating employees into companies, especially in smaller businesses. The agreement also introduced individual development plans and mandatory professional interviews, offering a structured approach to continuous skill advancement and career planning.
Furthermore, the agreement prioritised inclusivity by focusing on young workers and those with fewer qualifications, addressing significant skills gaps in the sector. It also promoted upward mobility for part-time and low-wage employees, aiming to create more equitable opportunities. By enhancing the skills of the workforce, the agreement supported greater productivity and adaptability in a sector facing rapid changes due to technological advancements and market demands. This approach was particularly valuable for smaller retailers, which had previously struggled to provide structured training due to limited resources, thus enabling them to better compete in a challenging business environment.
In the retail sector, particularly in front-end jobs with frequent customer interactions, safety concerns have become increasingly significant. Growing evidence shows that retail employees often face verbal assaults and harassment from customers, creating a hostile work environment and deterring people from entering or staying in the sector. Harassment is a kind of workplace violence that may be inflicted by clients on the clerks and requires the implementation of preventive measures (Acquadro Maran and Varetto, 2021[28]). Stakeholders have identified these safety concerns as contributing to staffing shortages, making their resolution a priority both to make the sector more attractive for new workers and to retain the existing ones.
Safety concerns among retail workers reflect a global challenge in the sector, including in Europe. In February 2024 the British Retail Consortium published figures showing that shop workers are experiencing an alarming increase in violence and abuse, with an average of 1 300 incidents reported daily in 2022-2023. This surge included racial abuse, sexual harassment, physical assaults, and threats with weapons, all of which rose by 50% compared to 2021-2022. For these reasons, retailers are urging the government to create a specific offense for assaulting, threatening, or abusing retail workers. On the employers’ side, some companies are already implementing measures to protect employees, such as allowing workers to display only their first names on badges and banning abusive customers.
To offer increased protection to the country’s retail workers, in 2021 Scotland (United Kingdom) introduced new legislation, creating a new offence for situations where a retail worker is assaulted, threatened or abused while engaged in their duties. The offence can result in a fine, with penalties escalating to a prison sentence, depending on the aggravation. Committing such an offence while a retail worker is enforcing a statutory age restriction (for example, asking for proof of age from someone trying to buy alcohol) also constitutes an aggravation. Also, this Scottish intervention mandates police to document all retail crime incidents, with the aim to further act as deterrence for assaults.
In countries like Japan, where customer service is traditionally held in high regard, cases of customer aggression towards retail workers have risen and policymakers adopted new solutions to tackle the issue. A recent union survey revealed that nearly half of service sector workers had experienced verbal abuse, excessive demands or physical violence from customers – referred to as kasuhara (customer harassment). In response, Tokyo is introducing the country’s first ordinance to protect retail workers, effective from April 2024. Although it lacks penalties, the ordinance aims to raise awareness and discourage abusive behaviour.
Improving safety in retail can make it a more attractive employment option, particularly in a sector where female participation is high. Addressing these concerns can help ease staffing shortages by making retail jobs more appealing to current and prospective workers. Preventive measures should be tailored to address workplace violence perpetrated by clients on workers, including coping strategies (e.g., assertive communication and reporting to work management or police).
Source: “Just another day in retail”: Understanding and addressing workplace sexual harassment in the Australian retail industry - ANROWS - Australia's National Research Organisation for Women's Safety; brc-crime-survey-report-media-2024.pdf
New legislation introduced for the protection of Scotland's retail workers - Police Scotland; https://uazensen.jp/2024/06/12/101142.
The Online interactive Risk Assessment (OiRA) tool, developed by the European Agency for Safety and Health at Work (EU-OSHA), is a resource for enhancing workplace safety across the European retail sector. Designed especially for micro and small enterprises, OiRA provides a free platform to help businesses identify, assess, and manage occupational risks, including those stemming from interactions with demanding or aggressive clients.
For instance, the issue of demanding clients, aggressive behaviour or sexual harassment are covered in the assessments of the Greek Hellenic Ministry of labour and social affairs for supermarkets, for all types of shops from the Croatian Ministry of labour, pension system, family and social policy, and the Slovenian Ministry of Labour, Family, Social Affairs and Equal opportunities.
The available risk assessment are broader than relation of clients. Other occupational hazards, from working with dangerous tools, to repetitive movements, body position and the risk of standing for long periods at a time can be addressed using the tools on this platform.
Source: OiRA – Online interactive Risk Assessment, European Agency for Safety and health at Work.
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← 1. These may not be full-time equivalent jobs. National accounts data from Eurostat suggest there were 16.9 million workers in the retail sector across EU countries in 2022 (Eurostat table nama_10_a64_e). The European Commission counts 30 million workers in the broader ecosystem, which includes wholesale and other related sectors (https://single-market-economy.ec.europa.eu/single-market/services/retail_en) .
← 2. Germany: approximately 84 million people; France: around 68 million people; Italy: about 59 million people, Spain: roughly 48 million people; Poland: around 38 million people.
← 4. Similarly, the share of jobs that do not involve direct interaction with customers, i.e. “back-end” jobs, increased in all but four of the observed European countries during the same period.
← 5. For further details on the methodology see OECD (2022[24]).
← 6. Only in Cyprus and Lithuania, retail job postings are more likely to request tertiary degree. As the sample size for these countries is limited, it could be that these results are driven by the specific selection of vacancies that are posted online, and not a good reflection all jobs present in the retail sector of those countries.
← 7. The OECD uses indicators of foreign-born individuals instead of nationality to gain insights on international migration because the laws governing the acquisition of new nationality differ across countries, making nationality less comparable across countries. Place of birth, however, provides a consistent basis for comparison across countries. Therefore, people classified as foreign-born may still be nationals of the countries in which they reside or work.
← 8. Involuntary part-time workers can also be observed through the reason why people are in a part-time job, one of which is the inability to find a full-time job. For almost all countries, this yields very similar measure of involuntary unemployment. Except for Italy, where about half of respondents in part-time employment indicate that a full-time job was not available.
← 9. Sample sizes for the retail sector employ by contract length are too low for some countries to satisfy reporting requirements and are therefore missing from the chart not mentioned in the text.
← 10. These countries are Estonia, Latvia, Lithuania, Luxembourg, Malta, Slovenia, Bulgaria, Cyprus, the Slovak Republic and Switzerland. For Switzerland, only 2023 is used, as data for the year 2021 is not available.