The European Union risks losing more than 1 million jobs this year due to the economic consequences of the war with Iran and rising global competition, the bloc's executive body warned. This was reported by Bloomberg, according to UNN.
Details
According to a European Commission analysis shared with Bloomberg, about 560,000 jobs could be cut this year due to energy costs, while about 600,000 jobs are at risk in the automotive industry.
The sectors most affected by the spike in energy prices are likely to be construction, metallurgy, the chemical industry, and transport.
These figures are a stark illustration of the EU's growing economic challenges. While leaders try to accelerate plans to boost the continent's competitiveness, the bloc continues to fall further behind the US and China
European firms have been overpaying for energy for years after the bloc reduced its dependence on Russian oil and gas following Moscow's full-scale invasion of Ukraine in 2022. The situation has only worsened this year after Iran closed the Strait of Hormuz — a vital route for global fuel supplies.
In addition, European companies are struggling to compete with American and Chinese rivals in digital and green technologies, such as electric vehicles, solar panels, and artificial intelligence. The EU is working on various initiatives to try to protect its local industry from such pressure.
The Commission stated that about 85,000 jobs related to battery production, a key component for electric vehicles, are under threat. Furthermore, nearly 60,000 jobs related to solar panel production could be affected.
The Commission did not immediately respond to a request for comment.
EU fuel costs rose by €22 billion due to war with Iran13.04.26, 17:07
Earlier, Politico reported on the job loss estimates.
The EU executive will release its assessments of how governments are meeting their commitments to reduce deficits. It will also provide recommendations on how countries should improve their economies and labor markets.
The Commission is expected to emphasize the importance of national poverty reduction strategies, as approximately one in five low-wage workers is employed in sectors with limited productivity growth.
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