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summary home contents summary 01 EU Employment Restructuring Report Q4 2012

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summary
home
contents
summary
01 EU Labour
market trends
02 EU member
state labour
trends
03 most heavily
impacted sectors
04 reasons
for announced
job losses
05 european
labour market
outlook
06 major
job layoffs
announced
in europe
07 major
job creations
announced
in europe
about this
report
➔ Job losses jumped
in the third quarter of
2012 as the painful debt
restructuring saga dragged
on, and as the EU economy
moved closer to recession.
Dismal economic growth
figures show that the
likelihood of a return to
recession seems almost
inevitable, with modest
economic recovery not likely
until at least mid-2013.
there remains tremendous uncertainty over the capacity to
absorb the deep structural remedies necessary to restore
long term fiscal balance.
3 | Employment RestructurinG report | European union edition Q4 2012
Notwithstanding some
positive measures to allay
the immediate debt and
banking crisis afflicting the
EU, there remains tremendous
uncertainty over the capacity
to absorb the deep structural
remedies necessary to restore
long term fiscal balance.
The depth and duration
of the required economic
adjustment, not to mention
the social consequences,
are only beginning to be
fully realized, in terms of
longer term European
unity and global growth.
Official OECD estimates
have downgraded both
EU economic activity
and growth among the
developed economies,
largely as a consequence
of the EU stagnation.
GDP growth in the third
quarter in the EU was a
meagre 0.1% and year-over-
year recorded a fall of 0.4%.
Throughout the year, the
UK declined -0.1%, France
edged 0.1% higher and
Germany grew by 0.9%.
While more positive signs
emerge from the US, and
with China’s own mini-slump
looking to have bottomed, the
EU’s problems remain a serious
threat to the world economy.
Within the EU, the number
of job losses as a result of
business restructuring activity
jumped in the third quarter
to more than 100,000, while
the number of job creations
fell to a just 30,000.
Equally worrying is that the
economic weakness that was
once confined to peripheral
economies is beginning to
impact core economies.
Across the EU, the impact
of austerity measures is
producing stark differences
in economic performance
and employment. Rising
unemployment rates
and, in particular, youth
unemployment rates in Greece
and Spain of above 50%
are calling into question the
merit of spending cutbacks
and the capacity to sustain
austerity over the long haul.

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