From time to time I look at the European Restructuring Monitor website to see whether offshoring has gained importance in the restructuring of European companies. Take a look at statistics I derived from that website, data refers to job cuts announcements in the given year, while actual displacements may be stretched in time.
Two conclusions can be made:
- Situation on the labor market in Europe improved in line with hard statistics, after a very high number of jobs lost in 2005 due to restructuring the same figure for 2006 eased a bit, although we do not know what would be the total layoffs announced in the last two weeks of 2006
- Offshoring is gradually becoming a more important motive behing jobs restructuring
Daily press reports increased offshoring activity from old Europe to new Europe, countries like Poland score very high (after India and China) in offshoring attractiveness indices, so in 2007 we should see further acceleration of this trend, which should contribute (ceteris paribus) to falling unemployment, rising potential output and stronger exchange rates in host countries.