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Restructuring in the Chemical Industry – facts, figures and experiences from the European Perspective Radosław Owczarzak Research Manager Employment and Competitiveness Unit

Restructuring in the Chemical Industry – facts, figures and experiences from the European Perspective Radosław Owczarzak Research Manager Employment and

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Restructuring in the Chemical Industry

– facts, figures and experiences from the European Perspective

Radosław OwczarzakResearch Manager

Employment and Competitiveness Unit

Content

• Eurofound and Chemical Industry– Sector study (2008) on the future skill needs– ERM, EIRO, EWCO observatories (cases)– EWCS, ECS Surveys (all manufacturing only) – Jobs Project

• Restructuring facts and figures - Sources:– ELFS, ERM (cases and the overview)– Employment shifts/Jobs Project (wages and skills)

0

2 000

4 000

6 000

8 000

10 000

12 000

Chemical and chemical products restructuring job losses, 2002-11

Job losses Job gains

Source: ERM

Chemical and chemical products restructuring job losses, 2008-11

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

8 000

9 000

2008q1 2008q3 2009q1 2009q3 2010q1 2010q3 2011q1

job loss job gain

Source: ERM

Employment level changes (%) in manufacturing sectors (NACE rev 2), EU-27, during the recession (2008q2-2010q2)

-25 -20 -15 -10 -5 0 5

w earing apparel leather goods

textiles w ood and related products

furniture computer, electronic

fabricated metal products tobacco products

printing and reproduction basic metals

paper and paper products other non-metallic minerals other transport equipment

beverages electrical equipment

coke and refined petroleum motor vehicles, trailers

machinery and equipment rubber and plastic products

food products chemicals and chemical products

other manufacturing basic pharmaceutical products

Source: LFS

Chemical and chemical products: ERM job losses 2002-2011

Bankruptcy/closure

Internal restructurin

Offshoring,outsourcin

Other

Merger/acquisition

Other manufacturing: ERM job losses 2002-11

Bankruptcy/closure

Internal restructurin

Offshoring,outsourcin

Other

Merger/acquisition

0

2 000

4 000

6 000

8 000

10 000

12 000

Restructuring job gains / losses in Chemical sector (NACE rev 1.1), 2008-11, by country (LFS)

Job gains

Job losses

• Add a qualitative dimension to net employment change data (ELFS) using wage and skills

• Method first used by J. Stiglitz for the US

• First cross-national application in Europe (to 23 MSs) in ERM 2008

• A job is an occupation in a sector (ISCO-NACE)

The ‘jobs’ approach: overview

… leading to a quintile

assignment

Rank Sector Occupation

1 Financial services Corporate managers

2 Legal /accounting Other professionals

3 Education Teaching professionals

4 Human health activities Life science and health profs

.......

……

1105 Agriculture Skilled agric / fishery workers

1106 Services to buildings Sales/services elementary occups

1107 Education Sales/services elementary occups

1108 Food manufacture Craft workers

Lower 20%paid (skilled)

Medium-low paid (skilled)

Medium paid (skilled)

Medium-high paid (skilled)

Higher 20%paid (skilled)

Quintiles

For each country, a job ranking . . .

02,

000

4,00

06,

000

8,00

0

US, 1992-2000 (Wright/Dwyer)

02,

000

4,00

06,

000

8,00

0

EU(23), 1998-2007

Recent employment expansionsin EU and US (different periods)

The Great Recession: 5m jobs lost in the EU

Before and after . . .

Employment shifts in Chemicals and Pharmaceuticals 2008q2 to 2010q2 by wage quintile

Comparing job-wage and job-skill rankings (% per annum employment change by quintile, EU27)

Polarisation Upgrading Downgrading

Variety of national patterns(2008-10)

EDUC LEVEL

EDUC QUINTILES