2012employmentrestructuring 3reporteuropean union edition

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| European union edition Q3 2012contents Summary p/3 METHODOLOGY NOTES: The Kelly Restructuring 01 Index is compiled by Kelly Outsourcing Group, a EU labour market trends p/4 division of Kelly Services. It aims to provide a 02 summary of the leading factors contributing to EU member state labour trends p/6 labour and hiring conditions in the relevant markets, with 03 a special focus on up-to-date layoffs and job creation Most heavily impacted sectors p/9 statistics. It is compiled from publicly available data from 04 official, private and not-for- profit organizations. Reasons for announced job losses p/12 05 European labour market outlook p/13 06 Major job layoffs announced in Europe p/14 07 Major job creations announced in Europe p/22 About this report p/27 graphs Total reported European job losses and gains resulting from restructuring P/5 Total reported European job losses by country P/7 Total reported European job gains by country P/8 Total reported European job losses by sector P/10 Total reported European job gains by sector P/11 DISCLAIMER: This information is provided with the understanding that it is not guaranteed to be correct or complete and conclusions drawn from such information are the sole responsibility of the user. Attempts have been made to ensure that this data or documentation is accurate and reliable; Kelly Services does not assume liability for any damages caused by inaccuracies in this data or documentation. Kelly Services makes no warranty, expressed or implied, as to the accuracy, completeness, or utility of this information, nor does the fact of distribution constitute a warranty.

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| European union edition Q3 2012 contents summary 01 EU Labour market trends 02 EU member state labour trendssummary ➔ The European Union’s labour market suffered further downgrades in national GDP have knocked business money supply expansion, aimed at putting some zing with the go-ahead for a Euro-wide rescue package 03 most heavily impacted sectors 04 reasons weakness, with job losses and consumer sentiment, into the tepid US recovery, from Germany’s high court, for announced job losses outstripping gains in the first and reinforced a cycle of albeit at the expense the two measures have 05 european labour market half of 2012, as the region’s adverse events that are of inflationary risk. substantially shifted sentiment. outlook economic deterioration thwarting recovery. 06 major The ECB’s intervention had As things stand, the economic job layoffs continued. announced Amid the gloom, a significant an immediate positive effect position is challenging in europe The precarious break has come with the move on borrowing costs, and enough. There has been a 07 major job creations financial state of by the European Central Bank effectively removed one discernible deterioration announced in europe key EU economies (ECB) to purchase the bonds factor that could have easily in economic performance about this is feeding into of stressed EU economies, spiralled into a global banking in the key economies of report a debilitating jobs perhaps forestalling a and credit slowdown. Germany, France and market, characterised more serious setback, and the United Kingdom. There is no guarantee that by stalled jobs growth, even optimistically, ruling this alone will spark renewed Hopes of a return to economic and sustained levels a line under the 2011–12 confidence, but failure to growth in the EU this year of retrenchments. sovereign debt crisis. act would have seen the EU have all but evaporated, and Persistent negative news This has been supplemented tracking down an unchartered there is a prospect of only from financial markets and by the US Federal Reserve’s and hazardous path. Coupled modest growth in 2013. There has been a discernible deterioration in economic performance in the key economies of Germany, France and the United Kingdom.

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| European union edition Q3 2012 contents summary 01 EU Labour market trends 02 EU member state labour01 trends ➔ Labour market The unemployment rate in Stagnant economic growth Germany performed slightly 03 most heavily impacted sectors weakness persisted during the EU stood at 10.4% in July, across the region is pushing better than forecast with 04 reasons the second quarter of 2012, up from 9.6% a year earlier, unemployment into a zone a 0.3% increase in GDP in for announced job losses although the gap between representing almost 25 million that would have seemed the June quarter, but the 05 european unimaginable five years picture is muted, with the labour marketeu labour job gains and job losses people out of work, about outlook was somewhat better two million more than a year ago before the onset of OECD predicting the region’s 06 majormarket than in recent quarters. ago. Within the eurozone, the the global financial crisis. powerhouse economy will slip into recession in the job layoffs announced in europetrends There was a total of 335 cases unemployment has edged even higher to 11.3%. Unfortunately, the picture in second half of 2012. 07 major job creations of announced job restructuring most of the leading economies announced seems to be deteriorating France recorded its third in europe in the three-month period, of The lowest unemployment about this which 193 involved job losses with weakness expected to successive quarter of zero report rates are in Austria (4.5%), and 137 involved job creation. last throughout the remainder growth, with its central bank Netherlands (5.3%) and of 2012 and into 2013. The predicting a mild contraction According to the European Germany and Luxembourg eurozone bloc contracted by in the third quarter. The UK Monitoring Centre on Change, (both 5.5%). The highest 0.2% in the second quarter. has suffered three quarters this resulted in a total of rates are in Spain (25.1%) of negative growth and 72,793 job losses, compared and Greece (23.1%). is firmly in recession. with 47,454 job gains, for a Elsewhere, the UK has 8% net loss of 25,339 positions. unemployment, France has 10.3% and Italy has 10.7%.

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report | European union edition Q3 2012 contents summary 01 EU Labour 0 market trends 2005/Q4 2006/Q2 2006/Q4 2007/Q2 2007/Q4 2008/Q2 2008/Q4 2009/Q2 2009/Q4 2010/Q2 2010/Q4 2011/Q2 2011/Q4 2012/Q2 2006/Q1 2006/Q3 2007/Q1 2007/Q3 2008/Q1 2008/Q3 2009/Q1 2009/Q3 2010/Q1 2010/Q3 2011/Q1 2011/Q3 2012/Q1 02 EU member state labour trends 03 most heavily impacted sectors 04 reasons total reported european job losses and gains for announced job losses resulting from restructuring (Q4 2005 to Q2 2012) 05 european labour market outlook 250,000 Loss 06 major job layoffs C Creation announced L in europe 200,000 07 major job creations announced in europe 150,000 about this report 100,000 The unemployment rate in the EU stood 50,000 at 10.4% in July – representing almost 25 million people out 0 2005/Q4 2006/Q1 2006/Q2 2006/Q3 2006/Q4 2007/Q1 2007/Q2 2007/Q3 2007/Q4 2008/Q1 2008/Q2 2008/Q3 2008/Q4 2009/Q1 2009/Q2 2009/Q3 2009/Q4 2010/Q1 2010/Q2 2010/Q3 2010/Q4 2011/Q1 2011/Q2 2011/Q3 2011/Q4 2012/Q1 2012/Q2 of work, about two million more than a year ago. Source: European Restructuring Monitor (ERM), European Monitoring Centre on Change

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| European union edition Q3 2012 contents summary 01 EU Labour market trends 02 EU member state labour02 trends ➔ The weakness in involved British retailer Clinton announcement that it There were also healthy job 03 most heavily impacted sectors Germany’s economy saw it Cards, which was placed will shed 3,700 positions gains at UK consumer co-op, 04 reasons shed almost 15,000 positions in administration, with the as part of a global plan Co-operative Group, which for announced job losses in the second quarter of loss of 2,800 positions and to slash 10,000 jobs. foreshadowed 3,000 new 05 european jobs over a five-year period. labour marketeu member 2012 – the highest in the EU. the closure of 350 stores. In Spain, a banking outlook 06 majorstate One of the biggest reductions Italy saw 8,869 jobs lost in merger between Banco Sabadell and Banco CAM Also in the UK, Offshore Groups Newcastle, will create job layoffs announced in europe will occur at Lufthansa, where the quarter, as Monte deilabour 2,500 jobs will disappear Paschi bank announced plans will see 450 offices close up to 1,000 jobs associated 07 major job creations and 2,200 jobs cut. with renewable energy.trends due to restructuring. to close 400 branches, with announced in europe the loss of 4,600 positions. The UK enjoyed the largest In Portugal, telco hardware about this The second largest country report instance of job creation in company, Nokia Siemens for job reductions was the There were significant job the quarter, with retail chain Networks will set up a new UK, with 9,302 job losses. losses in Finland (6,423), Sainsbury’s announcing the business unit in Lisbon, One of the biggest cases largely driven by Nokia’s creation of 6,000 new jobs with 1,500 jobs created. over the next 12 months. In Romania, the German car parts maker Continental Automotive Romania will create 1,000 new positions by the end of the year.

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RestructurinG report | European union edition Q3 2012 contents summary 01 EU Labour 0 United KingdomSpain Sweden Belgium Austria Norway GermanyFinland France Ireland ItalyPoland Romania Denmank Netherlands Slovenia Republic PortugalBulgaria Slovakia Czech market trends 02 EU member state labour trends 03 most heavily impacted sectors 04 reasons total reported european job losses by country (Q3 2011 to Q2 2012) for announced job losses 05 european 15,000 labour market outlook 06 major job layoffs 12,000 announced in europe 07 major job creations 9,000 announced in europe about this report 6,000 3,000 There were significant job losses in Finland (6,423), largely driven by 0 Poland Italy Spain France Finland Ireland Austria Norway Sweden Slovakia Belgium Romania Slovenia Bulgaria Germany Portugal Netherlands Denmark United Kingdom Czech Republic Nokia’s announcement that it will shed 3,700 positions as part of a global plan to slash 10,000 jobs. Q3 2011 Q4 2011 Q1 2012 Q2 2012 Source: European Restructuring Monitor (ERM), European Monitoring Centre on Change

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report | European union edition Q3 2012 contents summary 01 EU Labour 0 market trends United Kingdom Poland Romania France Germany Ireland Portugal Czech Republic Spain Sweden HungaryLithuania Bulgaria Slovakia Italy 02 EU member state labour trends 03 most heavily impacted sectors 04 reasons total reported European job gains by country (Q3 2011 to Q2 2012) for announced job losses 05 european 25,000 labour market outlook 06 major Q job layoffs 20,000 announced in europe Q 07 major 15,000 job creations announced Q in europe about this report Q 10,000 5,000 The UK enjoyed the 0 Czech Republic Italy Spain France Ireland Poland Sweden Slovakia Bulgaria Hungary Portugal Romania Lithuania Germany Kingdom United largest instance of job creation in the quarter, with retail chain Sainsbury’s announcing the Q3 2011 Q4 2011 Q1 2012 Q2 2012 creation of 6,000 new jobs over the Source: European Restructuring Monitor (ERM), European Monitoring Centre on Change next 12 months.

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| European union edition Q3 2012 contents summary 01 EU Labour market trends 02 EU member state labour03 trends ➔ The manufacturing The contraction in Other sectors to face cuts 03 most heavily impacted sectors sector across Europe suffered manufacturing reflects the include financial/insurance, 04 reasons the biggest job losses, as well wider global picture, with with 10,063 losses, and for announced job losses as the biggest job gains. China’s manufacturing wholesale/retail, with almost 05 european output easing, and US 10,000 positions gone. labour marketmost A total of 27,143 jobs manufacturing at a standstill. outlook 06 majorheavily disappeared from manufacturing, at the There were also substantial Aside from the manufacturing sector, which also saw the job layoffs announced in europeimpacted same time as 16,255 were job losses in the transport/ largest job creations, the other 07 major job creations created, for a net loss of storage sector, with sector to see improvementsectors almost 11,000 positions. almost 12,000 jobs cut. was wholesale/retail, with announced in europe about this 12,462 positions created. report

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report | European union edition Q3 2012 contents 0 summary Manufacturing Financial services Transport /storage Information/communicationUtilities Retail Construction administration & defence Public Administration Education Mining /social work servicesOther services Health Professional Hotels/restaurants 01 EU Labour market trends 02 EU member state labour trends 03 most heavily impacted sectors 04 reasons total reported european job losses by sector (Q2 2012) for announced job losses 05 european labour market 30,000 outlook 27,143 06 major job layoffs 25,000 announced in europe 07 major job creations 20,000 announced in europe about this 15,000 report 11,973 10,063 9,555 10,000 6,548 5,000 2,727 2,275 1,943 1,635 1,289 400 183 160 100 70 0 Manufacturing Transport /storage Financial services Retail Information/ communication Construction Utilities Public administration & defence Administration Education Mining Health/social work Professional services Hotels/restaurants Other services Source: European Restructuring Monitor (ERM), European Monitoring Centre on Change The contraction in manufacturing reflects the wider global picture, with China’s manufacturing output easing, and US manufacturing at a standstill.

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report | European union edition Q3 2012 contents 2000 summary 01 EU Labour 0 market trends Manufacturing Information/communication Retail Professional services/storage Financial services Health/social work Hotels/restaurantsestate Transport Mining Administration Construction Real Arts/entertainment Utilities 02 EU member state labour trends 03 most heavily impacted sectors 04 reasons total reported european job gains by sector (Q2 2012) for announced job losses 05 european labour market 18,000 outlook 16,255 06 major 16,000 job layoffs announced 14,000 in europe 12,462 07 major 12,000 job creations announced in europe 10,000 about this report 8,000 6,000 5,029 4,590 4,000 3,522 1,780 1,415 1,400 2,000 751 600 550 500 350 335 0 Manufacturing Retail Information/ communication Professional services Transport/storage Mining Financial services Administration Health/social work Construction Hotels/restaurants Real estate Arts/entertainment Utilities the other sector to see improvement was wholesale/retail, with 12,462 positions created. Source: European Restructuring Monitor (ERM), European Monitoring Centre on Change