EU Science Hub

EU Exports to the EU: Effects on Employment and Income

Abstract: 
The European Commission identified trade policy as a core component of the European Union’s 2020 Strategy. The fast changing global economy, characterised by the dynamic creation of business opportunities and increasingly complex production chains, means that it is now even more important to fully understand how trade flows affect employment in the EU economy. Gathering comprehensive, reliable and comparable information on this is crucial to support evidence-based policymaking. Guided by that objective, the European Commission’s Joint Research Centre (JRC) produced this publication. It aims to be a valuable tool for EU policymakers covering trade policy, industrial policy, employment policy and the European Semester. Following up Arto et al. (2015), this report features a series of indicators to illustrate in detail the relationship between international trade, income and employment for the EU as a whole and for each EU Member State using the World Input-Output Database (WIOD), 2016 release (Timmer et al., 2015, 2016), as the main data source. This information has been complemented with labour data by age, skill and gender from other sources such as EUKLEMS. All the indicators relate to the EU exports of goods and services consumed in another EU country or sold as intermediate to another EU country. Effects of intra-EU trade supplying inputs to other EU countries to produce exports of goods and services sold to non-EU countries are not reported here but in other JRC publications: “EU exports to the world: Effects on Employment” (Arto et al., 2018a) and “EU exports to the world: Effects on Income” (Arto et al., 2018b). Most indicators are available as off 2000 but, due to data constraints, the indicators on employment split by skill, gender and age are only available from 2008 to 2014. The geographical breakdown of the data includes the 28 EU Member States. The information presented in this pocketbook is complemented with an electronic version allowing downloads of the tables with the complete time series (2000-2014).