Flexibility and collaboration in the workplace is key to EU office-based employment growth
Colliers latest research says 2016 could see EU employment levels surpass 2008 peak
2016 could be the first year that European office employment levels surpass the previous peak of 2008, according to Colliers International’s latest research ‘EMEA Offices: Is Flexibility the Future?’.
The report shows that office-based employment levels in the EU have grown by 5 million, representing a 4.3 per cent increase over the last 10 years and surpassing the previous peak of 2008.
“An increase of only 4.3 per cent may seem marginal,” said Guy Douetil, Head of EMEA Corporate Solutions for Colliers International “yet, if you take into account the significant impacts of the trend towards outsourcing and offshoring in the EU, the global financial crisis from 2008 to 2012, and the impact of austerity on both the public and private sectors, the outlook for office employment in the EU is actually a positive one.”
The research shows the extent to which outsourcing of services has had a positive impact on certain areas of the EU, including South-Eastern Europe, Central Europe, Central and Eastern Europe and the Baltics, which all reported growth of between six and 15 per cent, albeit off a low base. The report also highlights that the UK & Ireland have seen significant growth in office-based employment in the last 10 years, reporting a 9.8 per cent increase between 2005 and 2015.
Damian Harrington, Head of EMEA Research, said: “This growth has been driven by the ability of these liberal economies to react to change, re-balance and attract private sector investment. It also reflects their more flexible approach to employment, with both contractual and self-employment increasing post global financial crisis in order to help spark an increase in employment. There has also been positive growth in the Nordics for similar reasons, with the tech sector playing a major part in the transformation of these markets.”
However, the report clearly shows that there are winners and losers in the EU when it comes to employment growth. In Western Europe for example, growth has been far more muted, showing only a 1.8 per cent increase in office-based employment. And in Southern Europe, there has been negative office-based jobs growth since 2005, with a decrease of 4.6 per cent.
Harrington added: “Germany has recovered but has been held back by a lack of capacity in the labour force. Whilst, France is in a similar muted growth position, but has been held back further by an inability to increase flexibility into employment.
“In Southern Europe, jobs growth has been more problematic. Spain and Italy have been hamstrung by restrictive and inflexible labour laws and both of these major economies, alongside smaller economies of Portugal and Greece have unwanted youth unemployment rates above 40 per cent. The good news however is that, due to regulatory reforms making it easier for firms to operate more flexibly, a turnaround for these Southern European counties is in the offing.”
Colliers International’s report concludes that flexibility, collaboration and an ability to embrace new ways of working cultures in the workplace is key to the growth potential of EU countries. Guy Douetil concludes: “As more mobile and technologically savvy employees come into the workforce we expect that the orientation towards new ways of working will continually improve across Europe.”