ExpertEye European Automotive Report Q1 2017 | Page 6

European Unemployment and Economic Sentiment Indicator
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The fall in unemployment is easing the burden on the public purse and this is
forecast to continue throughout the rest of the current economic cycle. Whilst
unemployment in the eurozone stayed flat in March 2017, job creation is now
running faster than it has been for almost a decade.
Even the more forward looking indicators, such as the purchasing manager
indices “PMI”, are showing a positve sentiment towards the future. In fact the
latest PMIs indicate the business community in France are more positive about
growth than their German counterparts, indicating that the European recovery
is starting to spread out.
The Economic Sentiment Indicator “ESI” is also showing overall confidence in
the recovery, running above its long-term average throughout Q1 and at its
highest level since 2011 for the EU as a whole.
Youth unemployment remains high across most of Europe, over 40% in Spain and
Greece and 35% in Italy. However, the employment laws in some countries
which were designed to protect employees is actually pushing the rise of zero-
hour contracts and temporary employment, particularly for the younger
workforce. In fact the problem is now so bad almost a third of under 30 year
olds in the EU are in these types of jobs. Even countries like Germany and
France are close to 40%, whilst in Italy, Spain and Poland it is around 45%-50%.
This not only creates political pressures but it also holds back the willingness of
this element of society to make strategic purchases due to their employment uncertainty.
European Automotive Report - 2017 Quarter 1
Source: European Commission
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