The document provides an economic overview for the EMEA region, reporting that the population of the EU has reached 501 million, industrial new orders and production are increasing, unemployment remains stable, and inflation and GDP are up slightly, while construction output is down. It also discusses related economic news from various countries in the region and provides updates on employment situations at companies like Fiat and EADS.

1. Manpower EMEA
Economic Insight
Issue 4. August 2010
EMEA Macro Economic Insight
EU27 population reaches 501 million Industrial new orders grow
Recent gures released by Eurostat show that at the beginning of Industrial new orders continued to
2010, the population of the EU27 was estimated to be over 500m strengthen across the region. In May
for the rst time. This is up from 499.7m January 2009. 2010 when compared with April 2010,
the Euro Area industrial new orders
The population of the EU27 grew by 1.4m in 2009, an annual index rose by 3.8%, a continual
increase of 2.7 per 1000 inhabitants. This was due to a natural increase from the 0.6% increase in
increase of 0.5m (+1.0%) and net migration of 0.9m (+1.7‰). April. In the EU27, new orders
increased by 2.7% in May 2010 after a
During this period just over 60% of the increase in the population rise of 0.3% in April. When excluding
came from migration whilst over 5.4m children were born within ships, railway & aerospace equipment,
the EU. The highest birth rates were seen in Ireland, the United for which changes tend to be much
Kingdom, France and Sweden whilst they were lowest in Germany, more volatile given the much longer
Austria, Portugal and Italy. lead in time, industrial new orders
grew by 2.6% in the Euro Area and by
Overall the population increased in nineteen Member States and 2.7% in the EU27.
decreased in eight, with considerable variations between Member
States. The largest relative increases were observed in On an annual basis, industrial new
Luxembourg (+17.2‰), Sweden (+9.1‰), Slovenia (+7.2‰), orders have increased by 22.7% in the
Belgium (+7.1‰) and the United Kingdom (+6.7‰), and the larg- Euro Area and by 20.1% in the EU27.
est decreases were in Lithuania (-6.2‰), Latvia (-5.7‰), Bulgaria Total industry excluding ships, railway
(-5.6‰) and Germany (-2.5‰). & aerospace equipment rose by 22.4%
and 22.0% respectively.
Construction output down by 1.0% in euro area
Whilst the industrial sector seems to be slowly improving the Industrial production increases
construction sector is still showing signs of continued weak- Along with industrial new orders, and
ness. Seasonally adjusted production fell by 1.0% in the Euro when compared with April 2010,
Area and by 0.6% in the EU27 in May 2010, compared with the seasonally adjusted industrial
previous month. In April, production decreased by 0.3% in the production increased by 0.9% in the
Euro Area, but rose by 0.5% in the EU27. Euro Area and by 1.0% in EU27.
When compared with May 2009, output in May 2010 dropped In April production increased by 0.9%
by 6.3% in the Euro Area and by 2.4% in the EU27. The largest and 0.5% respectively. Compared with
decreases were registered in Romania (-20.2%), Spain (-18.9%) May 2009, industrial production has
and Bulgaria (-16.6%), and the highest increases in output were risen by 9.4% in the Euro Area and by
recorded in the United Kingdom (+10.0%), the Netherlands 8.7% in the EU27.
(+5.7%) and Germany (+3.8%).
Industrial production rose in all
Building construction decreased by 5.3% in the euro area and Member States for which data is
by 2.2% in the EU27, after -5.6% and -3.3% respectively in available, except Greece (-6.3%)
April. Civil engineering dropped by 9.9% in the euro area and and Bulgaria (-1.7%). The highest
by 1.5% in the EU27, after -5.9% and +0.3% respectively in the increases were registered in Estonia
previous month. (+17.2%), Luxembourg (+13.5%),
Sweden (+13.4%), Latvia (+13.2%)
Euro area external trade deficit €3.4bn and Germany (+13.1%).
The rst estimate for the Euro Area trade balance with the
rest of the world in May 2010 gave a €3.4bn de cit,
compared with +€2.2bn in May 2009. The April 2010
balance was +€0.3bn, compared with +€2.6bn in April 2009.
In May 2010 compared with April 2010, seasonally adjusted
exports rose by 1.6% and imports by 4.2%.
How does this all relate to Manpower? Why not refer to the latest MEOS Reports
which are available from www.manpower.com/meos

2. Manpower EMEA
Economic Insight
Issue 4. August 2010
EMEA Macro Economic Insight
Annual inflation rates continue to fall Unemployment remains stable
Euro Area annual in ation was 1.4% in June 2010, down from The Euro Area seasonally-adjusted
1.6% in May. A year earlier the rate was -0.1%. Monthly in ation unemployment rate was 10.0% in
was 0.0% in June 2010. June 2010. This remains unchanged
in the previous three months. It was
EU annual in ation was 1.9% in June 2010, down from 2.0% 9.5% in June 2009. The EU27
in May. A year earlier the rate was 0.6%. Monthly in ation was unemployment rate was 9.6% in June
0.0% in June 2010. 2010, also unchanged from the
previous three months. It was 9% in
Within EU member states the lowest annual rates were ob- June 2009.
served in Ireland (-2.0%), Latvia (-1.6%) and the Netherlands
(0.2%), and the highest in Greece (5.2%), Hungary (5.0%) and Estimates indicate that 23.06m people
Romania (4.3%). in the EU27, of whom 15.7m were in
the Euro Area, were unemployed in
Compared with May 2010, annual in ation fell in fteen June 2010. Compared with April 2010,
member states, remained stable in four and rose in eight. The the number of persons unemployed
lowest 12-month averages up to June 2010 were registered in decreased by 36,000 in the EU27 but
Ireland (-2.5%), Latvia (-1.6%) and Portugal (-0.3%), and the increased by 6,000 in the Euro Area.
highest in Hungary (5.2%), Romania (4.6%) and Poland (3.5%).
When compared with June 2009,
Euro area and EU27 GDP up by 0.2% unemployment has risen by 1.5m in
Euro area and EU27 GDP both increased by 0.2% during the the EU27 and by 0.78m in the
rst quarter of 2010, compared with the previous quarter, Euro Area.
according to the latest revised estimates. In the fourth quarter of
2009, growth rates were +0.1% in the Euro Area and +0.2% in Business investment falls
the EU27. In the rst quarter of 2010, in both the
Euro Area and the EU27, the
In comparison with the same quarter of the previous year, sea- seasonally adjusted business
sonally adjusted GDP rose in the rst quarter of 2010 by 0.6% investment rate fell compared with
in the Euro Area and by 0.5% in the EU27, after -2.1% and the previous quarter. The seasonally
-2.3% respectively in the previous quarter. In the rst quarter of adjusted gross investment rate of
2010, Ireland recorded the highest growth rate compared with non- nancial corporations was 19.7%
the previous quarter at 2.7% followed by Sweden (+1.4%) and in the EU27, compared with 20.1% in
Portugal (+1.1%). the fourth quarter of 2009. In the Euro
Area, the investment rate was 20.2%
By comparison GDP increased by 0.7% in the US in the rst in the rst quarter of 2010, compared
quarter of 2010 (+1.4% in the previous quarter) whilst in Japan, with 20.4% in the previous quarter.
GDP grew by 1.2% in the rst quarter of 2010 (+1.1% in the
previous quarter). Interest rates remain static
Global short-term interest rates
Volume of retail trade continues to rise
continue to remain at very low levels in
In May 2010, compared with April 2010, the volume of retail
June 2010.
trade increased by 0.2% in the Euro Area and by 0.4% in the
EU27. In April retail trade fell by 0.9% and 1.0% respectively.
In the Euro Area, the European Cen-
In May 2010, compared with May 2009, the retail sales index
tral Bank’s key of cial interest rate
rose by 0.3% in the Euro Area and by 0.5% in the EU27.
has been at a historical low of 1.0%
since May 2009 whilst the UK’s of cial
Among the Member States for which data are available, total
bank rate has also been unchanged
retail trade increased in thirteen and declined in six on a
at 0.5% since March 2009. The key
month on month basis. The highest increases were observed
of cial rates of the US Federal Reserve
in Denmark (+3.8%), Poland (+3.5%) and Estonia (+1.7%),
and Bank of Japan have been held at
and the largest decreases in Malta (-3.8%) and Portugal
0.25% and 0.1% respectively since
(-0.8%).
the end of 2008.
How does this all relate to Manpower? Why not refer to the latest MEOS Reports
which are available from www.manpower.com/meos

3. Manpower EMEA
Economic Insight
Issue 4. August 2010
Germany EU
EMEA Country Insight
Staf ng Industry Analysts have reported that The EU has announced a funding package of
according to an of cial statement from the German €6.4bn for scienti c research and innovation
government 35% of all new jobs created in next year. This amounts to a 12% year on year
Germany in June 2010 were temporary jobs budget increase.
compared to 25% in January 2010. The number
of new temporary jobs has doubled since January The increase in funding aims to create more
2010 whilst the number of new permanent jobs than 165,000 jobs and develop “a more
increased by one third during the same period. The competitive and greener Europe”. The focus for
number of people working on a short-time basis the additional funding will be on tackling climate
in Germany fell by 250,000 between January and change, developing energy projects,
April 2010. In April there were 613,000 working advancing food security and extend health
short-time, well below its peak of 1.5 million in May research for Europe’s ageing population.
2009 when a large number of manfacturing plants According to latest gures EU-funded research
were on short-time working patterns. currently accounts for around 5% of the total
public funding for research in the EU.
Bulgaria
Tri-party talks about pensions reform have broken UK
down. Employer representatives have concerns The new coalition Government in the UK has
regarding social security costs whilst trade unions implemented a controversial temporary limit on
fear an erosion of workers rights, especially in rela- highly-skilled migrant workers from outside of
tion to the actual retirement age. the EU who enter the UK without an existing job
offer. The temporary limit will be replaced in the
Norway spring of 2011 when a more permanent quota
Effective from January 2011 Norway will replace its system will be established.
mandatory state retirement age of 67 with a more
exible system. Under the new scheme, pension Portugal
entitlement may begin at the age of 62, but The Confederation of Portuguese Industry
individuals can opt to postpone this until aged 75. (CIP) has called on the Government to stop the
planned increase in the national minimum wage.
Poland The CIP has stated that the €25 increase, which
The Polish statutory minimum wage will rise on is due to take place early next year, cannot be
January 1st 2011 by 5.2% to €346 euros per justi ed as economic conditions have changed
month. Increases are also to be made to the so dramatically over the last four years since the
minimum allowance for night shifts. annual rate raises were rst established.
Russia Germany
The Russian President, Dmitry Medvedev has set The German Ministry of Health has stated that
about establishing a new criminal code which will absenteeism in German businesses rose
for the rst time establish clear guidelines for the during the rst half of 2010 to its highest level in
payment of wages. Until now individual ve years. Nearly 4% of working days were lost
managers have been able to avoid their due to absence, a 10% increase compared to
responsibility for the non payment of wages. The last year. This coincides with a recent study that
Russian Statistics Agency estimate that as of June showed across Europe over 1bn work hours are
2010 wage arrears amounted to 3.2bn rubles. The lost through employees feigning illness every
bill establishes lines of responsibility and sets out year which amounts to a potential loss of over
clear penalties for non payment including nes and €40bn. More than 800 million sick days are
possible prison terms of up to 5 years taken each year with the Spanish the most likely
to admit having taken a sickie (22%), followed
Greece by UK workers, the Irish (both 21%) and the
The Social Security and Pension Reform Bill has Dutch (20%). The Danish (4%) and the
begun its legislative process. The Bill will introduce Norwegians (10%) are the least likely to have
a levy up to 10% for pensions above €1,400 per taken a sick day off from work under
month whilst also raising the minimum retirement false pretences.
age to 65

4. Manpower EMEA
Economic Insight
Issue 4. August 2010
Fiat returns to profitability EADS looks to brighter future
EMEA Employment Insight
The Italian carmaker Fiat has for the rst time in 2 years EADS, the parent of plane-maker
announced a return to pro tability. The group announced a Airbus, has said con dence is slowly
€113m pro t for the second quarter, against a €179m loss for returning following a two-year dip.
the same period last year. The comments came as the company
reported a fall in second-quarter
Early next year Fiat intends to split the business into two earnings to €82m.
separate corporations. The de-merger is expected to take
place in January, with the non-car company to be named “Fiat Airbus is looking to increase
Industrial”. This will cover the truck, industrial and marine production of its single-aisle A320,
power train, agricultural and construction equipment with a production target of 40 planes a
businesses. The bulk of the Fiat Group’s business is month by 2012, from 34 at the
undertaken by its car making division, which saw net moment. The recent Farnborough air
revenues rise 7% to €7.9bn. The biggest impact on Fiat’s show saw Airbus win orders for 133
pro ts came from the group’s components division, which aircraft valued at more than $13bn.
will be included in the businesses to be spun off from the car
making division. However EADS, just like Boeing, is
concerned about future defence
At the same time agreement has been reached between Fiat contracts as Governments start to
and all but one trade union representing employees at the rationalise defence procurement
carmarkers Pomigliano plant near Naples in Italy. activities across the globe.
The deal, supported by the majority of the plant’s 5,200-strong EU limits bonuses
workforce, will introduce new exible working hours and new The European Parliament has voted in
mechanisms for resolving labour disputes. The agreement favour of placing new limits to
opens the way for a €700m investment and the transfer of bonuses and severance deals for the
production of the new Panda compact model from Poland. nancial services sector.
Boosting production at the Pomigliano plant is part of Fiat’s Under the terms of the new structure
ongoing investment strategy to increase production in Italy. it is proposed that employees will be
able to claim only 30% of a bonus
TNT to split business operations in any one nancial year, with the
TNT has announced that it is to split its mail and express units remaining proportion spread across
into separate companies. TNT is Europe’s second-biggest subsequent years, based on the
mail delivery rm and it has announced that it would start achievement of longer term goals.
running the two units as separate businesses early next year. There will also be limits placed on
large payments to departing
The announcement came as TNT reported a fall in second- executives. The legislation is expected
quarter pro ts to €3m from an €81m pro t last year. TNT to be passed by EU Finance ministers
said it was hit by “signi cant one-offs”, including a charge of shortly with the legislation in place by
€168m related to a reduction in headcount. early January 2010.
Mining Giant to undertake major investment Volvo Cars sold to Chinese
Xstrata the Swiss based mining conglomerate has announced Ford has announced the sale of iconic
that they plan to undertake $14bn of capital investment in 15 Swedish car manufacturer Volvo to
major growth projects. The world’s biggest exporter of coal Zhejiang Geely Holding Company. The
announced the plans after releasing H1 results. sale which was originally announced
in March has been nalised after the
The company stated that growth would be driven by the Chinese group paid $1.8bn. The deal
emerging BRIC countries whilst the European Union would was completed after agreements were
continue to struggle economically in the short-term. reached regarding the future use of
design and intellectual property rights.
For details about how this all relates to Manpower, why not refer to the
latest World of Work trends? Numerous reports are available from the
research centre at www.manpower.com