Europe threatens loss of over one million jobs due to energy costs

The European Commission released the European Semester Spring Package, which warns of the possible loss of over one million jobs in the coming years. The main reasons are high energy costs, external competition, and the green transition. The report provides an overview of the economic situation in EU member states.

The European Commission released today the European Semester Spring Package – a regular overview of the economic situation in EU member states. The report highlights concerning trends that could significantly affect Europe's labour market in the coming years.

Over one million jobs at risk

According to the Commission's assessment, Europe could lose over one million jobs if current economic trends continue. The three main risk factors are high energy prices, which burden manufacturing companies, intensifying competition from third countries, and structural changes in the economy caused by the green transition.

High energy costs have hit energy-intensive industries particularly hard, forcing them to either reduce production or close factories. This in turn affects the entire supply chain and related jobs.

Green transition brings both challenges and opportunities

The impact of the green transition on the labour market is twofold: on one hand, jobs related to fossil fuels disappear; on the other hand, there is growing demand for new skills and green economy jobs. The Commission's report emphasizes that the transition must be just and support retraining and job creation.

External competition, particularly from China, places pressure on Europe's manufacturing sector. Cheaper production from third countries makes it increasingly difficult for European companies to maintain competitiveness, forcing some to reduce their workforce.