The European Restructuring Monitor (ERM) follows a specific methodology for collecting data related to large-scale restructuring events, with the support of the Network of Eurofound Correspondents in the EU Member States and Norway. Here you can find details about the data collection method, the statistical processing, the type of information collected in each database entry, the data limitations and the media sources used.

• Data collection methodology
• Statistical processing
• Available information
• Data limitations
• Media sources

Data collection methodology

The extensive Network of Eurofound Correspondents in the EU27 and Norway gathers the information which is reported in the ERM restructuring events database. Using a media monitoring tool, correspondents carry out a wide-ranging daily screening of business press and online sources, recording large-scale company restructuring events. An event is included if it entails the announced destruction or creation of (1) at least 100 jobs or (2) implicates at least 10% of the workforce at sites employing more than 250 people. Cross-national restructuring events are also reported to the ERM.

• ERM: Network of Eurofound Correspondents

Eurofound monitors the quality of the data supplied by correspondents in an ongoing process of feedback and evaluation. Restructuring events previously published in the database are updated when details of the case change and are covered in the main media titles. Each event is recorded in a standardised format, called a ‘factsheet’, which allows for the compilation of indicative statistics comparing countries, sectors or types of restructuring.

A comprehensive methodology description is available in the ERM annual report 2013 (pages 7-22):

• Publication: ERM Annual Report 2013: Monitoring and managing restructuring in the 21st century

Statistical processing

Descriptive analysis

The statistical analyses available on-line are descriptive. They describe the breakdown (in number and percentage):

• of planned job reductions/job creation
• according to one of the following three variables: sector, country or type of restructuring

The analysis also offers a breakdown (in number and percentage):

• of cases recorded
• according to one of the three variables chosen

Method of information-gathering

The descriptive analysis is carried out for all cases based on announcements in the press. Eurofound cross-checks the information by means of different sources, but it does not make specific enquiries of the companies or the trade unions concerned.

Definition of the fields in the monitoring tool

The fields used for the statistical analysis are:

• country
• sector
• planned job reductions/job creation
• type of restructuring

Available information

The information gathered about restructuring events is recorded into a standard 'factsheet'. Each case contains the following information:

• Company name and group
• Geographic location: country, region and affected unit
• The sector described using the NACE code (classification rev 2)
• The number employed in the affected unit prior to restructuring
• The announcement date when the restructuring is reported for the first time in the press
• Type of restructuring event: bankruptcy, closure, offshoring/delocalisation, relocation, outsourcing, merger or acquisition, internal restructuring, business expansion
• Number of announced job reductions/creation
• Number of direct dismissals or other job reduction measures due to restructuring
• The employment effect start date when the announced jobs are expected to be lost or created
• The foreseen end date when the announced jobs are expected to be lost or created by
• The media sources used to report the case (name of source and publication date of the article) and links to the original article when available

The type of restructuring field may take a single value. If the case involves different types of restructuring, the category selected should reflect the type of restructuring accounting for the greatest proportion of job losses. In the ERM, the type of restructuring should fall into one of the categories outlined below.

In addition to the structured data, there is also very rich and useful information on individual cases, which forms the basis for subsequent qualitative research.

Data limitations

Given that the ERM restructuring events database relies on selected media titles, its coverage of restructuring activity in each Member State is indicative and cannot be considered representative.

In view of size thresholds for case inclusion, the monitor reports almost exclusively on restructuring in medium and larger-sized firms; this size bias in turn leads to an overrepresentation of the manufacturing sector where company size tends to be larger. Variability of national-level media coverage of restructuring events from country to country leads also to country biases. This is reflected in higher levels of ERM reporting in some Member States and lower levels in others.

lso, it should be taken into account that once reported in the media, the decisions announced by the companies may be changed for various reasons without necessarily giving rise to a second press article. We therefore underline that restructuring job losses are as originally announced; depending on the individual case, these figures may or may not tally with the actual final job loss or gain.

In spite of these biases and data limitations, the dataset does generate a picture of labour market restructuring, especially in relation to sectoral restructuring activity that is broadly consistent with data coming from more representative sources such as the European Labour Force Survey. It has also tended to anticipate well overall trends in (un)employment in European labour markets while providing unique data on the proportion of overall larger-scale restructuring-related job loss accounted for by different forms of restructuring (such as offshoring, internal restructuring). Other positive advantages of the restructuring events database are its timeliness, its identification of individual cases of restructuring based on publicly available information and its uniqueness as an EU-wide dataset of larger-scale restructuring events.

Media sources

The information concerning restructuring events is extracted from national media sources. Each restructuring case clearly quotes all sources that have been used to report the information. The media sources list is updated on a regular basis upon the suggestion of the national correspondents.

The following sources are used regularly: