According to a current analysis of the European Central Bank (ECB), high energy prices can cost thousands of jobs in Europe in the long term. Energy -intensive regions such as southern Germany, the Ruhr area and North -Italy are mainly influenced -with noticeable consequences for the service sector.
A permanent increase in electricity prices by ten percent presses employment in energy-intensive sectors with a maximum of two percent, the authors write in their analysis, which was published on the ECB website on Monday.
The effects are considerably and particularly strong in regions with clusters of energy -intensive industries. These include South Germany, the Ruhr area, North -Italia and to a lower extent, also Northern Belgia. The experts analyzed data from financial reports from around 200,000 industrial companies in Belgium, France, Germany, Italy and Great Britain.
Also indirect job losses in the service sector
“In addition to the estimated direct effects, we must also take into account the loss of jobs in sectors that are indirectly affected, such as the service sector,” the authors write. The loss of a position in an energy-intensive high-tech company can lead to a loss of a maximum of five other jobs elsewhere.
The competitiveness of the companies permanently reduced high energy prices. This is especially true for energy-intensive industries such as the chemical industry, the metal and cement industry.
Companies must pass on costs to customers
Companies could not pass these price increases to their customers without a loss of sales. If the energy costs remain high, falling turnover can therefore lead to job losses.
In their contribution, the authors pointed out that electricity prices in the EU are currently 2.5 times higher than in the US. Gas is almost five times more expensive.
Source: Krone
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