Europe’s economy in flux: Companies cut jobs as inflation and trade friction with China bites

Europe is currently struggling with high inflation and trade friction with China. This has affected Europe’s job market, with layoff announcements across industries.

Since the start of April, TSB, the British Bank owned by Spain’s Sabadell, is seeking 250 job cuts. Beyond Banking, the French supermarket chain CASINO said it would cut over 3000 jobs to address financial woes. Ted Baker, another retailer, announced the closure of 15 stories in Britain and 250 job cuts. Similar layoffs have been announced in the tech and mining sectors.

This comes amid the European Union’s tussle with China over its trade surplus. The EU levied tariffs up to 38 per cent on certain Chinese EVs. The commission defended the move, saying it was to protect domestic industries from cheap Chinese goods. However, major European economies have voiced concerns over the potential economic threats lurking in going after the largest car market in the world.

China’s retaliatory probe on EU pork imports further complicates matters. EU farmers are currently in the crossfire. China is the largest pork consumer in the world, with four major EU nations as top exporters to China. Rising energy costs further threaten farmer profits, prompting processors to cut jobs.

Europe’s economic woes are highlighted in the soaring housing costs. Barcelona, a popular tourist destination, announced plans to shut all holiday apartments by 2028. This ‘drastic’ move aims to counter the soaring home prices. The country’s growth rate was recently revised downward to an average of 1 per cent.