Employment and value added using FIGARO data - pharmaceuticals

Data extracted in July 2026

Planned article update: July 2027

Highlights

In 2024, EU exports from the pharmaceutical industry supported employment for one million people in the EU, corresponding to 0.46% of total EU employment.

EU employment linked to pharmaceutical exports to the United States more than doubled between 2010 and 2024 (from 116 000 to 297 000 workers).

In 2024, the exposure of the EU pharmaceutical industry to potential trade disruptions towards the United States, Switzerland, and China reached €58.6, €16.4 and €13.3 billion, respectively, in terms of EU gross value added.

Employment (in all industries) supported by exports of the pharmaceutical industry, by importing country, EU, 2010-2024

The pharmaceutical sector is a significant contributor to the economy of the European Union (EU), as highlighted in the Draghi Report. Combining cutting-edge research with strategic manufacturing to develop vital medications and therapies, this sector is one of the most dynamic in Europe. The European pharmaceutical industry is crucial for economic growth, contributing significantly to job creation and export revenues. However, it faces several challenges, including global competition and market fragmentation.

To provide more insights into this sector, this article analyses the gross value added and employment associated with its global value chains (GVCs). Analysing the GVCs can offer a deeper understanding of international trade relations than conventional trade statistics, which typically report the total value of a product at the point of trade.

The article focuses on NACE industry C21, which includes the manufacture of basic pharmaceutical products and pharmaceutical preparations. For simplicity, the terms "pharmaceutical industry" and "pharmaceutical sector" are used interchangeably.

EU employment linked to foreign final use

In 2024, total employment in the EU manufacturing industry, which includes the pharmaceutical industry, reached 30 million people. Although EU manufacturing employment fell between 1995 and 2014, it rose by 3.28% between 2010 (the first year of the FIGARO data) and 2024. Employment in the EU pharmaceutical industry supported by the final use of goods and services in non-EU countries has also increased since 2010, but much more sharply, by 101.03%. In 2024, the final use of products by consumers outside the EU supported the employment of 351 730 people in the EU pharmaceutical industry, twice the number recorded in 2010 (174 962 workers) (see Figure 1a).

The share of EU pharmaceutical employment linked to foreign final use of products in total EU manufacturing employment was 0.60% in 2010 and reached 1.17% in 2024 (see Figure 1b). This means that the foreign-final-use component of the EU pharmaceutical employment grew much faster than overall EU manufacturing employment during this period.

Consequently, employment in the EU pharmaceutical industry supported by final consumption outside the EU rose sharply and steadily between 2010 and 2024, showing both the expansion of the EU pharmaceutical workforce and its growing dependence on external demand.

A detailed evolution of the EU employment in the pharmaceutical industry driven by non-EU final use, broken down by partner country, is provided for the period 2010 to 2024 in the interactive Figure 2. The United States stands out as the dominant market, with particularly strong growth from 2014 onwards. In 2010, about 45 000 people were employed in the EU pharmaceutical industry to meet the final use of products by US consumers. In 2015, the market demand from the United States supported 66 000 EU pharmaceutical workers, with this number reaching more than 114 000 by 2024. The number of people employed in the EU pharmaceutical sector due to the US demand consequently more than doubled between 2010 and 2024.

China was the second-largest contributor to the EU pharmaceutical employment in 2024, with more than 30 000 people employed thanks to the Chinese consumers. The number of EU workers supported by the Chinese final use of products sharply increased from 6 000 in 2010. The third-largest contributor was the United Kingdom, with more than 26 000 EU workers; however, the highest value for this country was reached in 2015 (with 27 700 people). Switzerland and Japan, the fourth and fifth highest contributors, respectively, also represented major markets for the EU pharmaceutical industry, with more than 19 000 and 13 000 people, respectively whose employment was supported by the Swiss and Japanese consumers (up from 6 600 and 8 100 persons in 2010).

Figure 2

EU employment linked to exports

While the previous section outlined the employment in the EU pharmaceutical industry supported by the final use of goods and services from all industries in non-EU countries, this section analyses the employment across all EU industries linked to the EU exports of pharmaceutical products to non-EU countries. These 2 approaches differ but, together, provide a broader and more comprehensive picture of the global value chains of the EU pharmaceutical sector, including its dependencies and vulnerabilities.

In 2024, EU exports of pharmaceutical products to non-EU countries supported the employment of 1 million people in the EU, representing 4.6‰ (per mille) of total EU employment (219.4 million people). Data from 2010 onwards show that the number of EU workers across all industries supported by these exports rose steadily from 467 000. This growth included a sharp increase in 2015, followed by a slight decline in 2016 and a resumed upward trajectory from 2018.

Overall, EU employment generated by pharmaceutical exports nearly doubled between 2010 and 2024 (from 467 000 to 1 005 000 workers). Additionally, the share of employment per thousand workers grew significantly during this period, increasing from 2.4‰ in 2010 to 4.6‰ in 2024. Both the number of workers and their share of total employment reached their highest levels in 2024, indicating a strengthening contribution of pharmaceutical exports to EU-wide employment over time.

Interactive Figure 4 illustrates the involvement of the EU main trading partners in the EU pharmaceutical exports over time. The United States generated by far the highest employment in the EU through its imports from the pharmaceutical industry. After a slight decline from 116 000 workers in 2010 to 112 000 in 2013, EU employment linked to pharmaceutical exports to the United States rose sharply to 178 000 in 2015. It then decreased slightly to 163 000 in 2016 before climbing steadily to 297 000 by 2024.

Switzerland and China had the second and third highest employment, with respectively 175 000 and 74 000 EU people employed due to their imports from the EU pharmaceutical sector. Switzerland began at 62 000 in 2010 and exceeded 175 000 in 2024, indicating steady long-term growth. China, meanwhile, exhibited strong growth, starting at just 11 000 in 2010 and peaking at 76 000 in 2023 before stabilising at 74 000 in 2024.

The United Kingdom and Japan followed, with 66 000 and 31 000 EU workers, respectively. The EU employment figures supported by exports to the United Kingdom rose from 43 000 in 2010 to a peak of 75 000 in 2014, then generally declined to 61 000 by 2022, before rising again to 66 000 in 2024. Japan, by contrast, grew slowly but steadily from 19 000 in 2010 to 42 000 in 2022, before falling to 31 000 in 2023 and stabilising in 2024.

Overall, Figure 4 demonstrates that EU pharmaceutical exports are generating increasing employment in the EU over time. This rise is driven by nearly all the EU major trade partners, with the sharpest growth coming from the United States, Switzerland and China, followed by moderate growth from Japan, and a mid-period rise but subsequent decline from the United Kingdom. Throughout this period, the United States consistently remained the largest source of EU employment linked to pharmaceutical exports.

Figure 4

Direct and indirect effects of EU exports on employment

The employment supported by the EU exports from the pharmaceutical industry, discussed in the previous section, can arise either within the pharmaceutical industry itself or in other industries. The former represents the direct effect of EU exports on employment, while the latter reflects the indirect effect, effectively an industry spillover within the EU. This indirect effect captures employment in one industry that is sustained by exports from another industry in the EU.

Figure 5 compares the direct and indirect employment effects of pharmaceutical exports within the EU. It shows both the employment within the pharmaceutical industry supported by exports from all industries and the employment in other industries supported by exports from the pharmaceutical industry. Please note that the industries are presented according to the NACE Rev. 2 activity classification.

The data reveal that the direct effect is by far more significant than the indirect effect. In 2024, 341 400 people were employed in the EU pharmaceutical industry thanks to its own exports to non-EU countries. By contrast, EU exports from all other industries supported employment for only 27 400 people in the pharmaceutical sector. Meanwhile, EU pharmaceutical exports sustained 663 600 workers across other industries, confirming the role of the pharmaceutical industry as a net contributor to broader EU employment through its exports to non-EU countries.

In terms of percentages, the spillover effects from the EU exports of the pharmaceutical industry accounted for 66.0% (663 600 / 1 005 000) of the EU employment supported by pharmaceutical exports, whereas the spillover effects from the EU exports from other industries only contributed to 7.44% (27 400 / 368 800) of employment in the pharmaceutical sector linked to EU exports.

Industries where the EU pharmaceutical exports supported the largest numbers of workers in 2024 were ‘wholesale trade’ (G46), with 71 900 workers, and ‘legal and accounting activities; activities of head offices; management consultancy activities’ (M69_70), with 58 300 workers. Two categories of administrative and support service activities, specifically ‘security and investigation, service and landscape, office administrative and support activities’ (N80T82) and ‘employment activities’ (N78) also significantly benefited from EU exports of the pharmaceutical industry, with 63 600 and 38 400 workers, respectively. With 45 800 workers, ‘retail trade’ (G47) was also among the 5 largest beneficiary industry from the EU pharmaceutical exports, .

Conversely, EU exports from other industries contributed relatively little to pharmaceutical-sector employment, usually just a few thousand or hundred per industry. The most notable, though still modest, contributions to employment in the pharmaceutical industry in 2024 came from the ‘manufacture of chemicals and chemical products’ (C20) with 3 400 workers, ‘wholesale trade’ (G46) with 3 300 workers, and the ‘manufacture of food products; beverages and tobacco products’ (C10T12) with 2 300 workers.

Consequently, the indirect effect of EU exports on employment is strongly asymmetric for the pharmaceutical industry: its employment depends primarily on its own exports rather than on exports from other sectors, while it acts through its exports as a generator of employment across the wider EU economy.

Exposure to trade disruptions

As demonstrated in the previous sections, the EU pharmaceutical industry maintains strong bilateral trade relationships with the United States, China, and Switzerland, as well as with Japan, and the United Kingdom. The analysis examined 2 key perspectives: first, EU employment in the pharmaceuticals industry linked to foreign final use and second, EU employment supported by pharmaceutical exports. A similar analytical framework can be applied to value added (references to value added should be understood as gross value added (GVA) throughout this article), distinguishing between: EU value added in the pharmaceutical industry incorporated into foreign final use, and EU value added embedded in pharmaceutical exports. When combined, these 2 indicators provide a comprehensive measure of the overall exposure to potential trade disruptions.

The exposure indicator offers an exhaustive view of all linkages between the EU and a target partner country. For instance, in 2024, the EU exposure of the pharmaceutical industry towards the United States reached €58.6 billion (see interactive Figure 6). This number represents the sum of the EU value added in various categories, including:

final pharmaceutical exports
intermediate exports of pharmaceutical products to the United States ending up in its final use, or in a third country’s final use
intermediate exports of pharmaceutical products to a third country ending up in the United States.

Figure 6

The United States remained the dominant EU pharmaceutical trade partner throughout 2010–2024, with the EU exposure rising sharply from €11.6 billion in 2010 to €58.6 billion in 2024. This growth was particularly pronounced in 2 distinct phases: first, a steep increase from €11.6 billion in 2014 to €17.2 billion in 2015, followed by a second surge from €33.0 billion in 2021 to €44.4 billion in 2022. Overall, the United States accounted for the highest absolute growth, with increase becoming especially marked after 2014.

Meanwhile, China emerged as the fastest-growing trade partner in relative terms, with EU exposure expanding tenfold from €1.3 billion in 2010 to €13.3 billion in 2024. By 2019, it had overtaken both the United Kingdom and Japan. However, the EU trade exposure to China constantly remained below that of Switzerland, which is characterised by a stable upward trend from €4.3 billion in 2010 to €16.4 billion in 2024. This growth was consistent and free of major fluctuations, reflecting the role of Switzerland as a reliable and expanding trade partner. Switzerland and China established themselves as the second- and third-largest EU pharmaceutical trade partners by 2024. However, the EU exposure to these 2 countries remained far below that of the United States.

For the United Kingdom, the EU trade exposure rose gradually from €3.8 billion in 2010 to €6.1 billion in 2016. This rise stalled in subsequent years, leaving the figure at just €6.3 billion by 2021, but rose again subsequently to €8.8 billion in 2024. By contrast, Japan demonstrated near-linear growth from €1.8 billion in 2010 to €5.6 billion in 2022, followed by a decrease to €5.1 billion in 2024.

Figure 7

The exposure indicator can also be analysed from the perspective of the pharmaceutical industry of the EU trade partners. Interactive Figure 7 illustrates how trade exposure of key EU partners to the EU evolved between 2010 and 2024 for the pharmaceutical industry. During this period, the United States and Switzerland recorded the highest exposure levels, which gradually grew. The United Kingdom, India and China also experienced steady growth, but starting from significantly lower baselines.

A comparison of Figures 6 and 7 reveals asymmetries in exposure levels. For instance, in 2024, the exposure of the United States to the EU stood at €15.5 billion, which is far below the EU exposure to the United States (€58.6 billion). A similar imbalance existed for China (€1.1 billion versus €13.3 billion) as well as for the United Kingdom, although less pronounced (€6.1 billion versus €8.8 billion). Conversely, Switzerland displayed greater exposure to the EU than the EU did to them: €18.1 billion versus €16.4 billion. However, the 2 exposure levels are similar for India for 2024: €1.6 billion.

The rising exposure of the United States and Switzerland (as well as the United Kingdom, India and China) to the EU reflects the deepening integration of their pharmaceutical industries into the final exports to EU consumers, but also the intermediate exports to third countries ending up in the EU, and the intermediate exports to the EU for further processing and re-export to third-country markets.

Likewise, the high and increasing level of EU exposure to the United States, Switzerland and China underscores the growing embeddedness of the EU pharmaceutical sector in multiple dimensions. This includes not only direct and indirect supply chains serving US, Swiss, and Chinese consumers, but also supply-chain dynamics with third-country final use where US, Swiss, and Chinese production incorporates EU pharmaceutical inputs.

Figure 8

Detailed data by EU country (see interactive Figure 8) shows that Ireland dominated the EU pharmaceutical trade exposure to the United States, accounting for €36.1 billion of the EU total €58.6 billion exposure to the US in 2024. Germany (€5.5 billion), Denmark (€4.3 billion), Belgium (€3.3 billion), France (€1.9 billion), and Italy and the Netherlands (both €1.8 billion) followed.

Similarly, Ireland emerged as the leading EU country in pharmaceutical trade exposure to non-EU countries (with €60.9 billion in 2024). The second and third largest contributors among the EU countries in 2024 were Denmark (€22.7 billion) and Germany (€19.6 billion). Belgium also played a major role relative to its size (€8.8 billion).

Data align with structural characteristics of the EU pharmaceutical sector. The industry is highly concentrated, dominated by multinational corporations that operate across the entire value chain, from clinical research and development to large-scale manufacturing. More information on the pharmaceutical sector can be found in the Context section.

Source data for tables and graphs

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Data sources

Concept and definitions

Macroeconomic globalisation indicators presented in this article are computed using the FIGARO tables (Full International and Global Accounts for Research in Input-Output Analysis), through the application of the Leontief quantity model (Miller and Blair, 2022). This model relies on the interdependencies between industries and countries, represented mathematically in the form of technical coefficient matrices. The Leontief inverse matrix is derived, which captures the total direct and indirect effects of changes in final use across countries and industries.

The FIGARO tables are a statistical product of the integrated global accounts for economic modelling. They are constructed by combining multiple data sources, including National Accounts Main Aggregates (NAMA), Supply and Use Tables (SUTs), Balance of Payments (BoP), and trade statistics for goods and services. Meeting standards from the European system of national and regional accounts (ESA 2010), the methodology ensures alignment with national accounts concepts, and integrates adjustments for trade asymmetries and valuation differences.

The FIGARO tables link national accounts and data on business, trade and employment for the 27 EU Member States (Belgium, Bulgaria, Czechia, Denmark, Germany, Estonia, Ireland, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Luxembourg, Hungary, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Slovenia, Slovakia, Finland, and Sweden), 2 EFTA countries (Norway and Switzerland), 5 EU candidate countries (Albania, Montenegro, North Macedonia, Serbia, and Türkiye), and 15 main EU trading partners (Argentina, Australia, Brazil, Canada, China, India, Indonesia, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, the United Kingdom, and the United States). A 'rest of the world' region completes the FIGARO tables.

The FIGARO tables present the relationship between economies at a detailed level of 64 industries and 64 products, following the NACE and CPA classifications, as defined in the ESA 2010 national accounts transmission programme.

Key steps in the FIGARO process involve harmonising classifications, estimating trade margins, and balancing bilateral trade flows between countries, aligned with national accounts. This process generates inter-country supply, use and input-output tables that detail the flows of goods and services across industries and countries, enabling comprehensive analysis of global value chains, production, and environmental impacts.

The following main applications are produced based on the FIGARO tables:

macroeconomic globalisation indicators,
greenhouse gas footprints linked to final consumption and investment in the EU.

What are global value chains

The production of goods and services relies on inputs, which can be sourced locally or globally. The final value of a product reflects the value that has been added in the different stages of the production chain, through the combination of factors of production, including employment. Gross value added may be generated, and employment may be located, in multiple countries. This phenomenon is commonly referred to as global value chains (GVCs), which have significantly transformed international trade over the past few decades. GVCs have driven economic growth, innovation, and shaped global production networks, fostering a complex and interconnected world.

By fragmenting production across borders, GVCs have capitalised on lower transportation costs and digital infrastructure. However, recent geopolitical events have disrupted the value chains, reshaping the global landscape. In response, countries are adopting policy measures, such as tariffs and export controls, to safeguard their economic security. Under the political guidelines 2024-2029 of the European Commission's President von der Leyen, resilient and strategically managed GVCs will become increasingly crucial for navigating global trade and maintaining economic stability.

Indicators

This article focuses on the following macroeconomic globalisation indicators:

Domestic value added in exports - EU perspective = the gross value added generated in a EU economy (origin) by the exports of a EU economy (exporting) to non-EU economies. It corresponds to the value added created, along the value chain, by the direct and indirect production of goods and services for extra-EU exports. The indicator is broken down by exporting industry, classified according to NACE Rev. 2. It is measured in thousand euro, and as percentage of extra-EU exports.

Domestic value added in foreign final use = the gross value added generated, in the selected EU economy, along the value chain, by the production of goods and services that are purchased by users abroad (in the other EU and non-EU economies) for final consumption or investment purposes. The indicator is measured in thousand euro, and as a percentage of Gross Domestic Product (GDP) and percentage of gross value added.

Trading partner exposure = the domestic gross value added generated by the exports of an economy to a trade partner directly and indirectly through third countries. This indicator is built up on domestic value added in exports and domestic value added in foreign final use, and enables a more comprehensive assessment of the dependencies and potential vulnerabilities between the EU and its trade partners. It is measured in thousand euros.

Domestic employment in exports - EU perspective = the employment supported in a EU economy (origin) by the exports of a EU economy (exporting) to non-EU economies. It corresponds to the employment supported, along the value chain, by the direct and indirect production of goods and services for extra-EU exports. The indicator is broken down by exporting industry, classified according to NACE Rev. 2. It is measured in number of persons, and as percentage of total employment.

Domestic employment in foreign final use = the employment in the selected EU economy supported, along the value chain, by the production of goods and services that are purchased by users abroad (in the other EU and non-EU economies) for final consumption or investment purposes. The indicator is measured in number of persons and as a percentage of total employment.

See Metadata on all available macroeconomic economic globalisation indicators for further details.

Detailed information on the indicators, their definition and use can be found in the Statistical Working Paper Macroeconomic globalisation indicators based on FIGARO. Insights into the measurement of value added and employment in the EU.

It is worth mentioning that the macroeconomic globalisation indicators provide results in values (not differentiating between prices and volumes). Hence, results and conclusions about dependence in global value chains must be carefully considered.

Additionally, throughout this article, all references to value added should be understood as gross value added (GVA).

Frequency and availability

The FIGARO tables and applications, including the macroeconomic globalisation indicators, are produced and updated annually (generally in summer). In July 2026, the time series from 2010 to 2024 has been published (period T-24 months, T being the year of release). The time series is in line with the latest macroeconomic aggregates.

More information

For more information, please refer to the thematic section for the supply, use, input-output and FIGARO tables.

Context

Pharmaceutical industry

The European pharmaceutical sector, known for its substantial R&D investments and innovation in drug development, exerts a strong economic impact despite encountering challenges such as global competition and regulatory complexities, as outlined in the Draghi Report.

The Draghi Report presents a thorough strategy for the EU to regain its competitive edge in the pharmaceutical industry. It underscores the sector’s crucial role in the EU economy, significantly contributing to research and development as well as trade balance. The report identifies challenges including reduced public and private R&D investment, approval delays, and market fragmentation and proposes strategies to overcome these obstacles. Its recommendations include sustained investment in R&D, streamlined regulatory processes, and the utilisation of digital health data to boost innovation efficiency. Additionally, it advocates for targeted public investment in gene therapies and the integration of AI throughout the lifecycle of medicines to preserve the EU healthcare strengths. These recommendations aim to guide the EU in maintaining its leadership in the global pharmaceutical industry and ensuring sustainable growth for the future.

Europe hosts several leading hubs of excellence for pharmaceutical companies, renowned for their innovation, research and development (R&D), manufacturing, and regulatory expertise:

Germany contains the headquarters of major pharmaceutical enterprises, such as Bayer, Boehringer Ingelheim, and Merck KGaA.
France is home to Sanofi, Servier, and Ipsen, with a strong public-private research ecosystem.
Denmark is a biotechnology powerhouse with Novo Nordisk (world leader in diabetes care) and Lundbeck (neuroscience).
Belgium is a logistics and manufacturing hub for pharma, hosting Pfizer, Johnson & Johnson, and UCB.
The Netherlands is a logistics and innovation hub, with MSD (Merck), AbbVie, and Philips Healthcare.
Ireland benefits from the significant presence of many leading pharmaceutical companies (Pfizer, Johnson & Johnson, Roche, AbbVie, AstraZeneca, etc.)
Italy is strong in generics, vaccines, and biotech, with Chiesi, Menarini, and Dompé.
Sweden is a biotech innovation leader, home to AstraZeneca (originated in Sweden) and Sobi.
Switzerland is hosting global pharmaceutical giants like Novartis, Roche, and Lonza.
United Kingdom is a global leader in biotechnology and life sciences, with AstraZeneca, GlaxoSmithKline (GSK), and emerging biotechs.

Additionally, hubs are emerging in Spain (Barcelona’s bioregion, Grifols), Austria (Vienna’s Boehringer Ingelheim hub), and Portugal (Lisbon’s growing biotech scene).

Purpose

The FIGARO tables offer the first official set of inter-country supply, use, and input-output data for the EU, serving as a crucial analytical tool. They enable comprehensive analyses of the social, economic, and environmental effects of globalisation, particularly relevant for studies on competitiveness, growth, productivity, employment, environmental impact, international trade, and global value chains. Used to evaluate EU policies, these tables also assess the economic interdependencies within the EU (or euro area or individual member countries) in the context of an increasingly globalised world.

Partners

The FIGARO tables are the result of a long-term collaboration between Eurostat and the European Commission's Joint Research Centre. Both partners also collaborate within the GIANT initiative (Global Input-Output Accounts), which is an global inter-agency network comprising the Asian Development Bank (ADB), the International Labour Organisation (ILO), the International Monetary Fund (IMF), the Organisation for Economic Co-operation and Development (OECD), the United Nations Economic Commission for Latin America and the Caribbean (UN-ECLAC), the United Nations Economic Commission for Africa (UN-ECA), and the World Trade Organisation (WTO), which aims to explore synergies and common action among the various initiatives on the compilation of multi-country (extended) supply, use, and input-output tables.

Explore further

Database

Data can be accessed through the thematic section and are stored in Circabc. Files containing the macroeconomic globalisation indicators are released in Excel format (for summary tables) and parquet file format (for detailed tables).

Data are also available from the Eurostat dissemination database in the folder "Macroeconomic globalisation indicators based on FIGARO (naio_10_fg)".

Additional data on the pharmaceutical sector is available through the detailed datasets on health care expenditure (SHA 2011) (data code: hlth_sha11), and in particular health care expenditure by function health care expenditure by function (data code: hlth_sha11_hc).

Thematic section

Supply, use and input-output tables (SUIOTs) and FIGARO tables

Publications

Visualisation

Eurostat globalisation dashboard

Methodology

External links