EU-Bericht: Arbeitsplatzabbau setzt sich 2010 fort[en][fr] 

The European Commission published its economic recovery plan in November 2008, featuring measures to boost public spending by Brussels and EU governments alike (EurActiv 12/01/08). 

A major strand of EU support is channelled through the European Investment Bank , primarily by means of loans to the cash-strapped European automotive sector and SMEs. More money has been made available through the Structural Funds. 

In addition, the European Globalisation Adjustment Fund has been reformed to act as a dedicated recession fund to co-finance active measures for dismissed workers. 

In the labour market, short-time working policies and training schemes have been used by several EU countries. 

Eurofound, the European Foundation for the Improvement of Living and Working Conditions, is an EU body based in Dublin, Ireland. It monitors employment conditions in Europe. 

Although unemployment has soared since the financial crisis gripped Europe in 2008, thousands more jobs would have been lost had governments not stepped in to support short-time working schemes and training initiatives. 

In its report on industrial restructuring published today (4 November), Eurofound says experience of previous recessions suggests the labour market "will continue to deteriorate well into 2010". 

The large number of temporary measures put in place to artificially prop up the jobs market will be removed in the coming months as major economies emerge from recession. 

France and Germany are already out of recession, and the UK is likely to follow by the end of the year. However, a return to economic growth will not be matched with an increase in employment, Eurofound warns. 

A marked increase in reported job losses has been recorded since the end of the second quarter of 2008, particularly in manufacturing and manual labour sectors which are dominated by young men. 

The proportion of job losses due to bankruptcy has also increased significantly, while the number of jobs lost to overseas rivals declined, according to the report. 

Propping up traditional industries 

A range of measures have been put in place by companies, often with government support, but these should be steered towards green industries and new innovative companies, Eurofound says. Retraining for new green-collar jobs is also expected to pay off in the long-run. 

Shorter working weeks, forced annual leave and production stoppages have characterised the response by large companies fighting to maintain their workforce while battling the recession. Wages have fallen by between 10% and 20% in some sectors as European industry strives to regain competitiveness, and early retirement is also widespread. 

However, propping up out-of-date businesses will not help prepare Europe for the future, the report says. Support for large companies in traditional industries, as well as assistance for declining industries, should be conditional on restructuring, according to Eurofound, which also stresses the need to ensure access to finance for innovative SMEs. 

The report says the effectiveness of wage subsidies for hiring additional workers is questionable as an anti-crisis measure. Experts believe many companies availing of this kind of government support would have hired additional workers anyway. 

In its analysis of the European Globalisation Adjustment Fund (EGF), Eurofound says more should be done be EU member states to raise awareness of the Fund. The current practice of using the EGF for just one year could be expanded to two years, and the application process should be simplified to prevent delays, according to the report.