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Dramatic recent oil price declines have seen deflation take hold in the EU. General price levels in December 2014 were 0.2% lower than a year earlier. This is further evidence of a tentative European economic recovery that appears to be running out of steam. Growth forecasts for the EU have been trimmed to 1.1% in 2015 after growth failed to reach even 1% in 2014.
The regulation of severance pay, that is the statutory benefits an employee receives from their employer to compensate for loss of income due to the termination of the employment, is left to the discretion of the Member States.
The European Commission promotes geographical mobility as a strategy to reduce discrepancies between supply and demand in European labour markets. While migration levels are low within and across EU Member States by comparison with other OECD regions, the proportion of EU migrants working in the EU is rising.
Recent data has cast doubt on the strength of the recovery. In its October 2014 World Economic Outlook, the IMF predicts a euro zone growth rate of 0.8% in 2014 (down from a forecast growth rate of 1.1% in April 2014). Factors contributing to the poorer outlook are slowdowns in the US, Japan and in the two biggest EU economies – Germany and France – as well as increased geopolitical risks arising from events in Ukraine, Syria and the wider Arab world.
While restructuring is increasingly acknowledged as an inherent characteristic of economic development and receives substantial policy attention at European and Member State level, the regional perspective on it is rarely discussed. However, most large-scale restructurings affect the regions and employment areas where they take place, not just the company and its employees. Based on secondary data analysis, a literature review and five in-depth case studies, this research project aims to identify the effects of large-scale restructuring at regional level. It also describes examples of successful regional management directed at maintaining and improving labour markets and living conditions following an important restructuring event.
According to the 2014 spring forecast from the European Commission DG-ECFIN, ‘the economic outlook is strengthening’ and ‘leading indicators point to GDP growth gaining momentum’. Some measure of modest growth has now returned to the majority of Member States. This issue includes: Macroeconomic trends and prospects; Job creation and job loss at a glance (1/4/14 - 30/6/14); Sectoral distribution of job losses/job gains, and top five cases; Restructuring support measures in focus: Italy; Sector in focus: Retail in the UK; Sector in focus: Healthcare in the Netherlands; Sector in focus: Tobacco.
Young people in Europe continue to experience great difficulties in entering the labour market. Although the youth unemployment rate in a few Member States has started to fall, overall 23% of young European job-seekers aged 15–24 could not find a job in January 2014. In 2012, 14.6 million young people across Europe were not in employment, education or training (NEETs), accounting for 15.9% of the entire population of those aged 15–29. This report analyses the labour market situation of young people in Europe, focusing in particular on their school-to-work transition, while also monitoring their more general transition to adulthood. The report also investigates the ability of young people to remain in employment against the odds during the crisis and charts their transitions from temporary to permanent contracts. The report concludes with a discussion on the strengths and weaknesses of selected policy measures.
This report looks in detail at recent shifts in the employment structure at Member State and EU level, examining the main sectors and occupations that have contributed to job loss and job growth. It finds, for example, that in 2011–2013, the majority of net employment losses continued to occur in middle-paid and low-to-middle-paid jobs in construction and manufacturing. Employment growth remained resilient in high-paid, high-skilled jobs, and knowledge-intensive services have been the main source of this growth. The report also examines some of the likely drivers behind the changing employment structure: technological change, globalisation and labour market institutions.
According to the most recent European economic forecast from the European Commission’s DG-ECFIN, the recovery is broadening, as some measure of modest growth returns to the majority of Member States. DG-ECFIN also points to growing internal consumer demand as the driver of recent growth ‘reducing the dependency of the recovery on the external sector’. This first issue for 2014 includes: Macroeconomic trends and prospects; Job creation and job loss at a glance (1/1/14 - 31/3/14); Sectoral distribution of job losses/job gains, and top five cases; National collective redundancy provisions; Sector in focus: Steep jobs decline in German PV industry; Sector in focus: More jobs losses in financial sector.