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EU faces risk of 1.3 million job losses amid energy price surge linked to Iran conflict
The Commission further noted that low-income households may face increased financial pressure, with transport fuel costs potentially rising by an additional 1.4% of income.
The European Union could lose up to 1.3 million jobs across key industrial sectors this year due to a sharp rise in energy prices triggered by the ongoing U.S.-Iran conflict, according to European Commission officials cited by Reuters.
EU Labour Commissioner Roxana Minzatu warned that energy-intensive industries are under severe pressure as geopolitical tensions in the Middle East continue to drive up global energy costs.
“Due to the war in the Middle East, up to 1.3 million jobs are at risk, particularly in energy-intensive industries,” Minzatu said during a press briefing.
According to Commission estimates, the automotive sector could be the hardest hit, with up to 600,000 jobs potentially affected. Other sectors at risk include construction, metals, chemicals, and transport, which could collectively lose around 56,000 jobs.
The report also highlights risks to emerging and green industries, with approximately 85,000 jobs in battery projects and nearly 58,852 jobs in solar manufacturing potentially affected. In the steel sector, an additional 4,500 jobs could be lost due to low-carbon transition measures.
The Commission further noted that low-income households may face increased financial pressure, with transport fuel costs potentially rising by an additional 1.4% of income.
The EU manufacturing sector currently employs around 30 million people, while services account for nearly 87 million jobs, underscoring the potential scale of economic impact.
The developments come amid heightened global concern over energy security and industrial stability as tensions between Washington and Tehran continue.