The European labor market is in trouble. Many experts are concerned about sluggish employment. Just recently, there were discussions about its recovery, but now that scenario is in question. The potential fallout of US tariffs, the details of which will be revealed on Wednesday, April 2, threatens the recovery of the labor market in the EU.
According to analysts at Deutsche Bank, large-scale reciprocal tariffs on all exports to the US could jeopardize economic growth in the eurozone and the UK. GDP could drop by 0.9% and 0.6% in 2025, respectively.
Furthermore, the labor market in the EU could face massive layoffs. Deutsche Bank estimated that 1.7 million jobs could be cut in the EU. The countries most at risk will be Germany, Italy, the UK, France, and Poland, which will account for nearly two-thirds of the total job cuts, Deutsche Bank highlights. The potential loss could reach 400,000 jobs in Germany, while Italy could lose about 240,000 jobs, the UK 150,000, France 140,000, and Poland 100,000.
The most vulnerable sectors likely to be affected by the looming tariffs will be manufacturing, logistics, and distribution. In such a situation, there will be an acute shortage of skilled workers. Additionally, the IT sector and engineering will also be hit hard.
At this point, the exact details of the US tariffs are unknown, but their potential impact on the European labor market is raising serious concerns.
