2012employmentrestructuring 2reporteuropean union edition

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| European union edition Q2 2012contents Summary p/3 METHODOLOGY NOTES: The Employment 01 Restructuring Report is compiled using publicly EU labour market trends p/4 available data from official, private and not-for-profit 02 organisations. This Report covers announced or actual EU member state labour trends p/6 reductions of at least 100 jobs, OR involving sites 03 employing more than 250 people and affecting at least Most heavily impacted sectors p/9 10% of the workforce. Job creations and layoffs are 04 associated with their date of announcement, not the Reasons for announced job losses p/12 scheduled completion date. 05 European labour market outlook p/13 06 Major announced job layoffs in Europe p/14 07 Major announced job creations in Europe p/20 About this report p/23 graphs Total reported European job losses and gains resulting from restructuring P/5 Total reported European job losses by country P/7 Total reported European job gains by country P/8 Total reported European job losses by sector P/10 Total reported European job gains by sector P/11 DISCLAIMER: This information is provided with the understanding that it is not guaranteed to be correct or complete and conclusions drawn from such information are the sole responsibility of the user. Attempts have been made to ensure that this data or documentation is accurate and reliable; Kelly Services does not assume liability for any damages caused by inaccuracies in this data or documentation. Kelly Services makes no warranty, expressed or implied, as to the accuracy, completeness, or utility of this information, nor does the fact of distribution constitute a warranty.

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| European union edition Q2 2012 contents summary 01 EU Labour market trends 02 EU member state labour trendssummary ➔ The on-again, off- again Greek debt bailout The most credible forecasts suggest that economic activity improving, and demonstrates the drag that the eurozone challenge to employers, where nerves are being tested by 03 most heavily impacted sectors 04 reasons plan has continued to drain will decline in the year ahead, debt crisis is having across a the indecision that surrounds for announced job losses economic confidence across with even the possibility of broad swath of the economy. the Greek debt situation, 05 european the EU, and is feeding a a European recession. and its possible spillover to labour market outlook worsening employment The intense focus on debt is other debt-laden nations. 06 major outlook, which sees higher The stagnant economy also magnifying the problem announced The intense job layoffs layoffs and weak job creation. and the uncertain climate of divergent economic in europe focus on debt is After several quarters of precipitated by the fortunes across member states 07 major also magnifying modest improvement in new announced The number of job prolonged debt stand-off saw and in certain demographics. job creations the problem of hiring and job attrition from in europe layoffs jumped sharply unemployment across the EU Unemployment in Spain divergent economic late 2010 to mid 2011, the about this in the fourth quarter begin to rise after remaining reached almost 23%, while report fortunes across cycle appears to have entered of 2011 as the largely stable from early 2010. economies such as Austria member states. impact of austerity a new phase, where cutbacks The unemployment rate has and Netherlands have rates measures, are being implemented and been recently at the highest below 5%. Meanwhile, youth slowing level in more than a decade. unemployment rates are two expansion plans postponed economic to three times higher than pending clarity on where activity and This worsening outlook exactly the sovereign debt average unemployment. weak consumer contrasts with the position in crisis finally settles. confidence took its toll the US, where job creation The period of slowing growth on labour markets. and unemployment are both will present a significant

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| European union edition Q2 2012 contents summary 01 EU Labour market trends 02 EU member state labour01 trends ➔ The labour market restructuring activity, a jump uncertainty amid the the EU27), the highest since 03 most heavily impacted sectors deteriorated during the of more than 61,000 over crisis in the eurozone. 1998. Eurozone GDP fell 0.3% 04 reasons final quarter of 2011 as the the previous quarter. This between the third and fourth for announced job losses number of layoffs recorded more than wiped out all the Understandably, new hiring quarter of 2011, throwing into 05 european a marked jump, and job improvement that occurred activity was largely on hold for doubt an extremely fragile labour marketeu labour creation remained weak. during the course of 2011. most of 2011 while employers recovery. Growth over 2011 outlook 06 major in the EU17 was just 1.4%,market There were a total of 257 Job creations as a result waited for more clear signs of recovery. However layoffs had down from 1.9% in 2010 announced job layoffs in europetrends cases of business restructuring of restructuring staged a actually been falling, from a (1.5% and 2.0% respectively for the EU27). In fact the 07 major announced in the quarter, of which two- modest improvement, up recent peak at the end of 2010, job creations recovery that did occur post in europe thirds involved job losses, and approximately 13,000 in the as employers were “making- the global financial crisis and about this one-third involved job gains. quarter to almost 47,000, do” with an already reduced report pre the debt crisis was one but well below levels in the headcount, and trying to avoid There were a total of 118,000 of the shallowest ever seen. pre-sovereign debt era. the need for further cuts. job losses as a result of this In Germany, GDP in the The jobs data, which is But late in 2011, there was a quarter contracted by 0.2% provided by the European spike in layoffs, suggesting but still grew by 3% for the Monitoring Centre on Change that business patience with the year, while the country boasts shows that the final months eurozone debt impasse may record low unemployment. of 2011 marked something have reached a breaking point. of a watershed in the manner The economies of Italy, that employers reacted to a By December, this Netherlands, Greece, Portugal prolonged period helped push the average and Belgium all contracted of economic unemployment rate in the in the quarter, while France and political EU17 to 10.7% (10.1% for posted a small gain.

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report | European union edition Q2 2012 contents summary 01 EU Labour 0 market trends 2005/Q2 2005/Q4 2006/Q2 2006/Q4 2007/Q2 2007/Q4 2008/Q2 2008/Q4 2009/Q2 2009/Q4 2010/Q2 2010/Q4 2011/Q2 2011/Q4 2005/Q3 2006/Q1 2006/Q3 2007/Q1 2007/Q3 2008/Q1 2008/Q3 2009/Q1 2009/Q3 2010/Q1 2010/Q3 2011/Q1 2011/Q3 02 EU member state labour trends 03 most heavily impacted sectors 04 reasons total reported european job losses and gains for announced job losses resulting from restructuring (Q1 2005 to Q4 2011) 05 european labour market outlook 250,000 Loss 06 major announced C Creation job layoffs in europe 200,000 07 major L announced job creations in europe 150,000 about this report 100,000 50,000 0 The economies of 2005/Q2 2005/Q3 2005/Q4 2006/Q1 2006/Q2 2006/Q3 2006/Q4 2007/Q1 2007/Q2 2007/Q3 2007/Q4 2008/Q1 2008/Q2 2008/Q3 2008/Q4 2009/Q1 2009/Q2 2009/Q3 2009/Q4 2010/Q1 2010/Q2 2010/Q3 2010/Q4 2011/Q1 2011/Q2 2011/Q3 2011/Q4 Italy, Netherlands, Greece, Portugal and Belgium all Source: European Restructuring Monitor (ERM), European Monitoring Centre on Change contracted in the quarter, while France posted a small gain.

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| European union edition Q2 2012 contents summary 01 EU Labour market trends 02 EU member state labour02 trends ➔ Debt-wracked Greece France, the Czech Republic, 03 most heavily impacted sectors soared to top spot for job Italy, UK and Sweden. 04 reasons layoffs, with a whopping for announced In Germany, the energy job losses 36,000 positions disappearing 05 european provider Eon cut 6,000 jobs, labour marketeu member in the final quarter of 2011. while in Italy, banking group outlook 06 majorstate Greece’s ranking reflects the widespread cutbacks Unicredit announced the loss of some 5,000 jobs. announced job layoffs in europelabour being inflicted across all In Sweden, car maker SAAB 07 major announcedtrends areas of the Greek civil job creations Automobile announced in europe service, but also the flow-on 3,600 layoffs as a result about this impact of this contraction report of filing for bankruptcy. to the private sector. Approximately 30,000 of There were some 10,000 job the losses were in the civil losses in France, spread across service, flowing from the a range of sectors and firms, Cabinet decision in October but largely in manufacturing to slash public service McDonalds will create 9,000 In Germany, Amazon will and financial services. pay and numbers as part jobs over three years. Also, recruit 2,000 workers for its of the IMF agreement. The largest cases of job the state owned railway SNCF logistics centres, while in the creation were in France, will recruit 4,500 jobs, and its UK, car maker Toyota will There were also significant Germany and the UK. In privatized subsidiary, Keolis, recruit 1,500 new workers job layoffs in Germany, France, fast food chain will hire 3,600 new workers. in its Derbyshire plant.

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Employment RestructurinG report | European union edition Q2 2012 5000 summary 01 EU Labour 0 market trends Greece GermanyFrance Republic Czech Italy United Kingdom Sweden PolandHungary SlovakiaBelgiumPortugal Netherlands Slovenia Ireland Spain Austria 02 EU member state labour trends 03 most heavily impacted sectors 04 reasons total reported european job losses by country (Q1 2011 to Q4 2011) for announced job losses 05 european 40,000 labour market outlook 06 major Q 35,000 announced 30,000 job layoffs in europe Q 07 major 25,000 announced job creations Q in europe 20,000 about this report Q 15,000 10,000 5,000 0 Greece Germany France Czech Republic Italy United Kingdom Sweden Poland Hungary Slovakia Belgium Portugal Netherlands Slovenia Ireland Spain Austria Q1 2011 Q2 2011 Q3 2011 Q4 2011 Source: European Restructuring Monitor (ERM), European Monitoring Centre on Change In Sweden, car maker SAAB Automobile announced 3,600 layoffs as a result of filing for bankruptcy.

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report | European union edition Q2 2012 contents summary 01 EU Labour 0 market trends FranceGermany Kingdom United PolandRomaniaHungary Republic Czech Bulgaria Ireland Portugal Latvia Slovakia Italy Austria SwedenLithuania 02 EU member state labour trends 03 most heavily impacted sectors 04 reasons total reported European job gains by country (Q1 2011 to Q4 2011) for announced job losses 05 european 25,000 labour market In France, fast outlook 06 major Q announced food chain McDonalds will 20,000 job layoffs in europe Q 07 major create 9,000 jobs over three years. 15,000 announced job creations Q in europe about this report Q 10,000 5,000 0 Italy France Germany United Kingdom Poland Romania Hungary Czech Republic Bulgaria Ireland Portugal Latvia Slovakia Austria Sweden Lithuania Q1 2011 Q2 2011 Q3 2011 Q4 2011 Source: European Restructuring Monitor (ERM), European Monitoring Centre on Change

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| European union edition Q2 2012 contents summary 01 EU Labour market trends 02 EU member state labour03 trends ➔ Public sector attributed to SAAB, and The transport sector saw 2,000 (1,200 jobs in Germany) 03 most heavily impacted sectors employment bore the brunt of the Finnish electronics administrative jobs cut at the and Peugeot-Citroen 04 reasons the cutbacks in the final three manufacturer, Elcoteq. Bulgarian State Railways. (500 jobs in France). for announced job losses months of 2011 as austerity 05 european Banking and financial The manufacturing sector The transport sector was the labour market measures demanded as partmost of the Greek bailout resulted services suffered, largely as once again enjoyed the big surprise, with 12,690 jobs outlook 06 majorheavily in a huge exit of Greek a consequence of upheavals in the investment banking largest share of employment gains, with an additional created during the quarter. A announced job layoffs government employees. major contribution came from in europeimpacted and insurance sub-sectors. 13,524 jobs being added announcements in the French 07 major announced Of the 41,000 public sector The insurance company as a result of businesssectors jobs that disappeared, Aviva will slash 1,500 jobs restructuring decisions. SNCF group, including its job creations in europe privatised arm Keolis, and its about this 30,000 were in Greece. in Ireland and the UK. report In addition to the previously transport and logistics arm, Manufacturing saw more mentioned Toyota expansion Geodis. Together, the SNCF than 30,000 jobs evaporate, in the UK, there were group accounted for more with the largest losses announcements by Audi than 9,000 new positions.

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report | European union edition Q2 2012 contents 0 summary Public administration Manufacturing Financial services Transport/communication Utilities Retail Construction Hotels/restaurants services Other Business services Agriculture/fishing 01 EU Labour market trends 02 EU member state labour trends 03 most heavily impacted sectors 04 reasons total reported european job losses by sector (Q4 2011) for announced job losses 05 european labour market 45,000 outlook 41,401 06 major Of the 41,000 public 40,000 announced sector jobs that job layoffs in europe disappeared, 30,000 35,000 31,423 07 major were in Greece. 30,000 announced job creations in europe 25,000 about this report 20,000 13,892 15,000 11,119 9,460 10,000 4,955 5,000 2,230 1,870 1,046 826 100 0 Public administration Manufacturing Financial services Transport/communication Utilities Retail Construction Hotels/restaurants Other services Business services Agriculture/fishing Source: European Restructuring Monitor (ERM), European Monitoring Centre on Change

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RestructurinG report | European union edition Q2 2012 summary 4000 01 EU Labour market trends 2000 02 EU member state labour trends 0 Manufacturing /communication Business services Retail Mining/quarrying Transport Hotels/restaurants Financial services Public administration Health/social work Construction Utilities 03 most heavily impacted sectors 04 reasons total reported european job gains by sector (Q4 2011) for announced job losses 05 european labour market 16,000 outlook The transport sector 13,524 06 major 14,000 announced was the big surprise, 12,690 job layoffs in europe with 12,690 jobs 12,000 07 major created during the announced 10,000 9,460 job creations quarter. The SNCF in europe group accounted about this 8,000 report for more than 9,000 new positions. 6,000 4,389 4,000 2,591 1,650 2,000 1,020 641 350 300 250 0 Manufacturing Transport /communication Hotels/restaurants Business services Mining/quarrying Financial services Public administration Health/social work Construction Utilities Retail Source: European Restructuring Monitor (ERM), European Monitoring Centre on Change