Job creation

Accumulating evidence indicates that large metropolitan centres are faring much better than other regions within the Member States of the EU. Such interregional inequality contributes to disenchantment with existing political systems, which in turn can weaken the social bonds that ground democratic systems. This is the context for the 2019 edition of the European Jobs Monitor, which analyses shifts in the employment structure – meaning change in the distribution of employment across occupations and sectors – of the EU regions. The analysis covers 130 regions of 9 Member States, which together account for nearly 4 out of 5 EU workers. The study finds that, while Member States are becoming more similar in their employment structures, regions within the same country are becoming more disparate. It also finds that cities have a disproportionately high share of well-paid, high-skilled services employment alongside growth in low-paid employment. The findings support continued EU regional policy assistance of regions in danger of being left behind.

Reshoring – namely the relocation of value chain activities back to the home country or its nearby region – has attracted an increasing interest both among scholars and policymakers. The European Reshoring Monitor is a collaborative project between Eurofound and a consortium of Italian universities aiming to monitor reshoring cases in Europe. This 2018 annual report provides a holistic and longitudinal overview of EU reshoring trends and characteristics by examining reshoring cases (from 2014 to 2018), policy initiatives, and the related literature. In quantitative terms, reshoring appears to be substantially stable, while qualitatively significant changes emerge relative to target countries, sectors and motivations. Reshoring flows have broadened to encompass northern and eastern Europe. The concentration in labour-intensive sectors observed in the past has declined. Cost factors that dominated the first wave of the phenomenon have today given way to factors linked to the global reorganisation of value chain activities.

Traditional theory about international business suggests that companies first establish a solid home market and go global only in later stages of their life cycle. However, this view is challenged by research that shows that some firms internationalise quickly after start-up – so-called ‘born globals’. These firms are assumed to be strongly innovative and growth-oriented, and hence could well contribute to the economic and labour market recovery Europe is seeking after the global financial crisis. So far, little is known about the full economic potential of these companies and how best to support them. This study aims to close this knowledge gap by providing a summary of literature and secondary data to characterise born globals and pinpoint their main strengths and weaknesses as well as economic and labour market potential.