EU faces 1.3 million job losses over war-driven energy surge
The European Union could lose up to 1.3 million jobs this year as a direct result of skyrocketing energy prices triggered by the ongoing U.S.-Iran conflict, the European Commission warned on Wednesday.
The crisis is taking a devastating toll on Europe's energy-intensive industries, threatening major layoffs across critical manufacturing, infrastructure, and green technology sectors, News.Az reports, citing Reuters.
"Due to the war in the Middle East, up to 1.3 million jobs are at risk, and we are talking about jobs in energy-intensive industry, particularly," EU Labour Commissioner Roxana Minzatu announced during a Brussels press conference.
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According to official European Commission estimates, the economic fallout will hit the continent's heavy industries and green initiatives disproportionately:
Automotive Industry: Facing the most severe impact, with up to 600,000 potential job losses.
Heavy Industry & Logistics: Around 56,000 jobs are at risk across the construction, metals, chemicals, and transport sectors.
Green Tech & Renewables: The energy shock is stalling Europe's green transition, endangering 85,000 jobs in battery projects and nearly 59,000 positions in solar manufacturing.
Steel Sector: An additional 4,500 jobs could be eliminated as the sector struggles to balance high power costs with mandatory low-carbon measures.
Household Budgets Under Pressure
Beyond the threat of mass unemployment, the energy crunch is hitting everyday citizens directly at the pump. The Commission projects that low-income households will be forced to spend an additional 1.4% of their total income just to cover rising transport fuel costs.
The looming wave of layoffs poses a significant challenge to the bloc's economic stability. Currently, the EU manufacturing sector employs roughly 30 million people, while the broader services industry provides nearly 87 million jobs across the member states.
By Aysel Mammadzada
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