Press release, 27 April 2012
Eurofound publishes the new format European Restructuring Monitor (ERM) Quarterly 1 2012:
Rise in restructuring activity in EU in first quarter
(Dublin, Ireland) For every three jobs lost in the European Union in large-scale restructurings, two new ones were created during the first quarter of 2012, the latest European Restructuring Monitor (ERM) quarterly reveals. The first issue of the newly designed quarterly provides an overview of the employment effects of large-scale restructuring in the EU27 and Norway, as well as links to online data which is updated on a daily basis.
A fresh focus on the essentials of economic activity reveals a weakening EU economy with an increasing likelihood that the Union is already in a double-dip recession. Output growth was negative in the most recent quarter (-0.3%, 2011Q4) and predicted to be negative also in the first quarter of 2012. Unemployment has risen persistently in the past year though the pattern of labour market performance remains very diverse across Member States.
The ERM recorded a total of 342 cases of restructuring between 1 January and 31 March 2012, nearly a hundred more cases than in the previous quarter. Of these, 213 were cases of announced restructuring involving job loss, 126 were cases involving announced job creation and three cases involved both job loss and job gain. They amounted to 86,013 announced job losses and 62,878 announced job gains. Internal restructuring accounted for almost 70% of the announced job losses. Compared to the previous quarter, the ERM recorded an increase in the incidence of bankruptcies (13%), closures (9%), offshoring and delocalisation (5%) as well as mergers and acquisitions (4%). In terms of geographic distribution, the countries which recorded the greatest number of announced job losses were Germany (12,416 jobs) and Hungary (12,301 jobs), followed by Spain (10,199 jobs), the United Kingdom (8,081jobs) and France (8,036 jobs). Romania (12,326 jobs) recorded the highest number of new jobs, followed by the United Kingdom (11,600 jobs), Poland (10,623 jobs) and France (10,430 jobs).
The restructuring cases with the biggest employment impact during the quarter both took place in the public sector. The Polish police force announced the recruitment of 5,100 new police officers in January 2012 while the Hungarian state administration announced the loss of over 6,700 civil servant jobs in the same month.
Manufacturing (36,309 jobs) was by far the sector the most affected by job losses. Other notably affected sectors were transport, storage and communications (12,939 jobs), financial intermediation (12,235 jobs), public administration (10,492 jobs) and real estate/ business activities (4,245 jobs). The highest number of announced job creations were recorded in manufacturing (15,280 jobs), followed by retail (12,226 jobs). Other sectors that display job growth during the quarter are real estate and business activities (7,375 jobs), transport, storage and communications (6,784 jobs) and electricity, gas and water supply (5,880 jobs).
The quarterly also focuses on the effects of restructuring in the case of Finnish mobile phone manufacturer Nokia moving some 2,200 jobs from their Romanian factory to production plants in Asia. It also highlights the new EMCC qualitative database incorporating government or social partner-based restructuring support instruments from the EU27 and Norway, which has recently been added to its existing database of restructuring cases.
Search the database of government or social partner-based restructuring support instruments
For further information, contact Måns Mårtensson, media manager, on email: email@example.com, telephone: +353-1-2043124, or mobile: +353-876-593 507.
NOTES TO THE EDITOR:
The European Foundation for the Improvement of Living and Working Conditions (Eurofound) is a tripartite EU body that provides European social policymakers with comparative data, research and recommendations.
The European Restructuring Monitor (ERM) is a unique EU-wide data set on larger-scale restructuring cases. It monitors the announced employment effects of large-scale restructuring events in the EU27 and Norway. The ERM is updated on a daily basis and data can be used for statistical analysis. The data for this report was extracted on 5 April 2012. or previous editions of the quarterly, more details of ERM data collection as well as other ERM-related publications, please refer to the ERM home page.
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