EU sounds alarm on Iran war: '1.3 million people face threat of unemployment'

The European Commission has announced that escalating conflicts and the environment of hot war in the Middle East are driving up energy costs on a global scale, pushing the European economy into a serious deadlock. The Commission warned that if the crisis deepens, as many as 1.3 million people could lose their jobs this year, particularly in energy-intensive sectors such as automotive.

The evolution of the long-standing tension in the Middle East into an all-out Iran war has created a seismic effect on the European labor market, following the global markets. The European Commission reported that major sectors, which are the heart of the industry, could come to a standstill due to the energy crisis triggered by the war.

"1.3 MILLION JOBS AT RISK"

European Commissioner for People, Skills and Preparedness Roxana Minzatu summarized the bleak outlook awaiting European industry with clear data during a press conference. Stating that the energy crisis is directly hitting employment, Minzatu used the following expressions:

"Due to the war in the Middle East, 1.3 million jobs across Europe are currently directly at risk. We are talking about strategic sectors where energy is used intensively and costs are directly tied to production. If this volatility in energy prices cannot be brought under control, mass layoffs will be inevitable."

AUTOMOTIVE SECTOR TO TAKE THE BIGGEST HIT

According to the projection report prepared by the Commission, the automotive sector, the locomotive of the European economy, is at the forefront of the sectors that will be affected by a possible wave of unemployment. The details and employment figures highlighted in the report were shared as follows:

Major collapse in automotive: It is estimated that 600 thousand people could become unemployed in the automotive sector alone, where production lines are expected to slow down due to the increase in energy prices.

Other sectors to be affected: In addition to automotive, the construction, metal industry, chemical, and transportation sectors are among the most vulnerable groups due to exorbitant energy costs.

GIANT EMPLOYMENT MARKET UNDER THREAT

Currently, 30 million people are employed in the manufacturing sector and 87 million in the service sector across the European Union. The European Commission is concerned that this crisis, stemming from an Iran war, could trigger a chain reaction in the manufacturing industry and that the wave of unemployment could quickly spread to the service sector, leading to a recession across Europe.

News Source: 12punto