Europe is facing a "dearth" of people with engineering skills, it has been claimed.

This is the opinion of Leif Johansson, chairman of the European Roundtable of Industrialists (ERT), the Financial Times reports.

The Volvo chief executive suggested there is a significant talent shortage in the sector, with businesses potentially losing manufacturing ground to developing nations such as China and India if it is not addressed with training and education.

Mr Johansson told the news source: "We have too much discussion about labor costs. What we really need to be concerned about is that we have the right skills and education."

He added there are not enough young people joining the profession and seeking engineering jobs in Europe, with thousands needed each year.

A group of the heads of major multinationals in Europe, such as Siemens, Fiat, British Airways, Nokia and Royal Dutch Shell, have warned that talent shortages are one of their biggest worries in the long term.

Earlier this year, the ERT unveiled its Vision for a competitive Europe, which made a series of policy recommendations for the next five years aimed at improving the region's economy.

Posted by Kate Griffin