European growth is lagging behind the US especially in jobs creation with two European jobs lost for every one created, according to Dublin-based research body, Eurofound.
Global economic growth is picking up but Europe is trailing behind the other major advanced economic areas (Asia, US) in terms of the strength of its recovery, according to the latest quarterly report from Eurofound's European Restructuring Monitor (ERM).
Fiscal tightening is likely to introduce new constraints on growth and may lead to extensive restructuring of public employment. Between 1 April 2010 and 30 June 2010 the ERM recorded a total of 214 restructuring cases, of which 141 were cases involving job loss. Total announced job losses totalled approximately 50,000 in the quarter as against announced job creation of just under 25,000 new jobs.
The European economy continues to show signs of stabilisation and a gradual return to more normal patterns of growth after the extreme turbulence of 2008-9. Unemployment in the EU has stabilised at 9.6pc (May 2010) but is nearly three percentage points higher than at its most recent pre-crisis trough in early 2008. There were over nine million people fewer in work in the EU27 in the first quarter of 2010 compared to the recent peak in employment in the third quarter of 2008, approximately 210 million compared to 219.5 million.
As in the previous quarter, auto manufacture is the sector reporting with the greatest job loss (5,167 jobs). The second ranking sector is financial intermediation with 4,789 quarterly job losses, followed by public administration / defence (4,755 jobs) and insurance and pensions (3,760 jobs).
The report also shows that the UK was on top of the list with 10,318 announced job losses, followed by Italy (7,245 jobs), France (5,948 jobs) and Poland (4,754 jobs). In the same period, the country with the highest number of announced job gains was Romania (4,895 jobs) ahead of the UK (3,785 jobs). Ireland and Slovakia follow with 2,930 and 2,890 announced job gains, respectively.
