Global skill shortages are hitting hard and fast. In 2025, 74% of employers worldwide are struggling to find the skilled talent they need. In Germany, the figure is even higher at 86%, with Portugal close behind at 84%. Across industries like healthcare, IT, logistics, and energy, businesses are feeling the pressure.
To stay competitive, companies need faster ways to find and onboard the right talent before competitors do. That’s where a combination of Employer of Record (EOR) services and talent relocation comes in. Together, they offer an effective solution: EOR helps companies hire instantly, and relocation helps move the right people into the right roles long-term.
To stay competitive, companies need faster ways to find and onboard the right talent before competitors do. That’s where a combination of Employer of Record (EOR) services and talent relocation comes in. Together, they offer an effective solution: EOR helps companies hire instantly, and relocation helps move the right people into the right roles long-term.
How big is the global skills shortage in 2025?
The numbers are hard to ignore: 74% of employers worldwide say they’re struggling to hire the skilled talent they need in 2025. In countries like Germany, Portugal, Ireland, or Brazil, over 80% of employers report persistent difficulties filling roles.
Skill shortages slow down innovation, strain teams, and delay product launches. When businesses can’t hire fast enough, existing employees are stretched thin, and growth plans stall.
Some industries are especially affected:
Healthcare & Life Sciences: 77%
Information Technology: 76%
Transport & Logistics: 74%
Energy & Utilities: 76%
Skill shortages slow down innovation, strain teams, and delay product launches. When businesses can’t hire fast enough, existing employees are stretched thin, and growth plans stall.
Some industries are especially affected:
Healthcare & Life Sciences: 77%
Information Technology: 76%
Transport & Logistics: 74%
Energy & Utilities: 76%
Why is this happening?
There’s no single cause. Skill shortages are the result of rapid technological change, outdated education systems, and changing workforce demographics. Some of the main drivers include:
• Tech outpacing training: AI, cybersecurity, and other new technologies require skills most workers haven’t yet acquired.
• Educational gaps: Universities often fail to equip students with real-world skills.
• Global competition:Skilled professionals are being recruited across borders.
• Changing workforce expectations: Workers now seek flexibility, purpose, and growth.
• Aging workforce:As experienced professionals retire, there aren’t enough qualified candidates to replace them.
• Insufficient forecasting tools: Many companies can’t predict or plan for emerging skill gaps.
• Economic disruptions: Fast shifts like the rise of remote work leave industries struggling to adapt.
Why do companies need faster hiring solutions?
Companies are no longer just competing with their local peers, they’re also competing with global employers for the same limited pool of skilled professionals. And when an open role sits vacant for weeks or months, it slows business.
The right people are hard to find, and traditional hiring models make it even harder to bring them on board. With demand consistently outstripping supply, slow hiring processes, limited local candidates, and legal barriers only create more bottlenecks.
To stay competitive, companies need ways to reach beyond their immediate geography, reduce the time between offer and start date, and handle onboarding and compliance as fast as possible.
The right people are hard to find, and traditional hiring models make it even harder to bring them on board. With demand consistently outstripping supply, slow hiring processes, limited local candidates, and legal barriers only create more bottlenecks.
To stay competitive, companies need ways to reach beyond their immediate geography, reduce the time between offer and start date, and handle onboarding and compliance as fast as possible.
Common hiring challenges include:
• Slow hiring processes: A big percentage of candidates drop off due to delays.
• Compliance complications: Local laws vary widely and can slow down cross-border hiring.
• Small talent pools: The best candidates may not be in your local market.
• Internal overload: HR and legal teams are stretched across too many responsibilities.
How does an EOR help speed up hiring?
An Employer of Record (EOR) allows companies to hire employees in new countries without setting up a local legal entity. This makes it possible to act fast when the right candidate shows up, regardless of where they live.
With an EOR you can:
• Hire talent immediately, even before you’ve established a local entity or secured work permits.
• Offload administrative work like contracts and payroll to the EOR.
• Cut time-to-hire from months to just weeks.
• Offload administrative work like contracts and payroll to the EOR.
• Cut time-to-hire from months to just weeks.
“The biggest advantage an EOR gave us was that we were able to hire quickly. Relocating employees can take time, especially when it comes to visa and paperwork. With WorkMotion, we were able to hire employees abroad and bridge the gap between employment and relocation.”
Jitske Lambrechts
International Payroll Management Specialist at IU Internationale Hochschule
How relocation helps fill critical skill gaps
Relocation allows companies to access broader, international talent pools and bring that talent to their offices.
Companies are increasingly relocating specialists for high-demand roles, particularly in IT, engineering, healthcare, and finance. In markets like Spain, Germany, or Estonia, relocation plays a crucial role in giving companies access to the right skills at the right time.
Companies are increasingly relocating specialists for high-demand roles, particularly in IT, engineering, healthcare, and finance. In markets like Spain, Germany, or Estonia, relocation plays a crucial role in giving companies access to the right skills at the right time.
Why relocation works:
• Hire for expertise, not location: Find the best talent, even if they’re based abroad.
• Fill hard-to-hire roles: For tech, healthcare, and engineering roles where local supply is limited, relocation expands your options.
• Knowledge transfer and innovation: Moving talent between markets encourages collaboration, skills sharing, and long-term growth.
• Supports retention: Offering relocation demonstrates real investment in career development.
How EOR and Relocation work together
In skill-shortage markets, combining EOR with relocation gives companies a two-part solution:
1. Hire immediately via EOR
When the right candidate is located abroad, onboarding them through an EOR means you don’t need to wait for visa approvals or entity setup. They can start working right away—remotely, legally, and compliantly.
2. Relocate when ready
While the EOR handles employment, your global mobility provider manages the relocation process in parallel—covering visas, housing, local registration, and more. Once the relocation is complete, the employee transitions to working in your local office.
1. Hire immediately via EOR
When the right candidate is located abroad, onboarding them through an EOR means you don’t need to wait for visa approvals or entity setup. They can start working right away—remotely, legally, and compliantly.
2. Relocate when ready
While the EOR handles employment, your global mobility provider manages the relocation process in parallel—covering visas, housing, local registration, and more. Once the relocation is complete, the employee transitions to working in your local office.
Conclusion
Forward-thinking companies are no longer choosing between hiring fast or hiring globally: they’re doing both.
Using EOR as a starting point lets you hire without delay, bringing international talent on board quickly and legally, even before a relocation is complete. Once the paperwork and permits are in place, an employee immigration provider like Jobbatical brings that talent into your local offices, fully integrated into your team. This dual approach reduces risk, accelerates time-to-productivity, and makes scaling across borders more sustainable.
Using EOR as a starting point lets you hire without delay, bringing international talent on board quickly and legally, even before a relocation is complete. Once the paperwork and permits are in place, an employee immigration provider like Jobbatical brings that talent into your local offices, fully integrated into your team. This dual approach reduces risk, accelerates time-to-productivity, and makes scaling across borders more sustainable.
