Job fortunes reveal a wide economic gulf between the winners and losers in Europe

London, United Kingdom (PRWEB UK) 15 July 2012

According to the latest labour market index figures from the Federation of European Employers (FedEE) Germanys labour market has greatly outperformed that of its closest rivals since January 2010. Moreover, All selected labour markets, apart from Germany, continue to perform less well than a year ago.

The UK was the only country to register an increase (3.1%) in the FedEE index in May 2012 compared with the previous month. The largest decline appeared in the Netherlands (8.1%) followed by Germany, Spain and Poland, where the index decreased by 3.8%, 1.2% and 0.9%, respectively.

Year-on-year growth rates reveal a more dramatic situation. Labour market dynamics deteriorated substantially in Spain, Poland and the Netherlands, where the index in May 2012 rose by 54.4%, 34.4% and 28.3%, respectively, compared to May 2011. A decrease was also evident in the UK (11.6%) whereas the German index grew by 7.4%. Overall, the EU27 index dropped by 11.2% from May 2011 to May 2012.

The movements of vacancy and unemployment rates and real labour costs per unit of output over the last year reveal wide variations between countries. In Germany there has been a positive year-on-year growth in the vacancy/unemployment ratio (+11.4%), whereas Spain (-45.9%) and Poland (-35.4%) have suffered substantial negative movements. Overall, the EU-average decline in the ratio of vacancies to unemployment was -7.7%. By contrast, labour costs increased on all countries analysed – and particularly in Germany (+3.6%), Poland (+2.3%) and Spain (+2.1%). However, production fell in Spain by 6.3%, by 1.7% in the Netherlands and by 1.6% in the UK.

Technical note

The FedEE Index measures the degree of health of an economy by analysing the relationship between labour supply and demand, adjusted by real labour costs per unit of output, conventionally used as an indicator of economic competitiveness. In order to construct our index, we have used data for the rate of vacancies, the rate of unemployment, the production index, the total nominal labour costs and the harmonised consumer price index. The index is based on Eurostat monthly data and FedEE estimates for all the European Unions 27 member sates from January 2010 onwards. [January 2010 EU27 =100].

Speaking at the release of the latest index figures today, Robin Chater, Secretary-General of The Federation of European Employers (FedEE) said that The conception of the European Union as a Common Market is now well and truly dead. Cracks are opening up throughout the EU between eastern and western nations, big and small countries, the eurozone and EU countries outside it and well managed economies like Germany and badly managed economies like Spain. EU politicians need to take a long look at recent trends and decide how the EU model of financial regulation, free movement and political checks and balances needs to change.

My view is that the EU experiment has been a fundamental mistake because it was conceived as a top-down solution to maintain the peace in the post-war years. Whereas a successful economic system should be built from the bottom-up by involving people as much as possible in local economies. Big can be beautiful but only if made up from the finest component parts.

What is FedEE?

The Federation of European Employers (FedEE) is the leading organization for multinational companies operating in Europe. It was founded in 1989 with assistance from the European Commission and has its head office in London, UK. The Federation is a direct member organization currently chaired by Ford Europe.

For further information and comment contact Alison Merrett on 0207 520 9264 or Alison(dot)merrett(at)fedee(dot)com or Robin Chater directly on robin(dot)chater(at)fedee(dot)com.

Tags: , , , , , , , ,

Comments are closed.

CIGI Experts Outline Prescriptions for Cannes Summit and Beyond in Special Report on G20 Issues

Waterloo, Ont. (PRWEB) October 20, 2011 With a possible euro zone collapse and Greek insolvency likely to dominate the upcoming [...]

Pathways Home Health and Hospice Satu Johal Receives CFO of Year of the Year Award; Silicon Valley Business Journal Honoree

Sunnyvale, California (PRWEB) December 02, 2011 Satu Johal, CFO at Pathways Home Health & Hospice, received the Silicon Valley Business [...]

Latest Financial Regulation News

Working Together Towards Better Financial Regulation and Stability in Asia Image by Asian Development Bank Tellers attend to clients in [...]

European financial regulation – 4 questions to Olivier Garnier (Societe Generale)

Olivier Garnier, Chief economist at Societe Generale Group, expresses his view on European financial regulation and its reform. Video interview [...]

AMS Health Care Mortgage Corporation Provides Debt Service Savings to Hospitals Utilizing FHA 242 Mortgage Insurance Program

Jacksonville, FL (PRWEB) August 30, 2013 An oft-overlook and relatively unknown federal program for hospitals seeking capital for needed and [...]

Vermont’s Captive Insurance Industry Off to Best Start Since 2005

Montpelier, VT (PRWEB) April 16, 2012 First quarter licensure of new captive insurance companies is off to a strong start [...]