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European Edition
19th December 2025
 
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THE HOT STORY

Wealthy nations curb labour migration amid surging demand

Anti-immigration policies are reshaping migration flows to high-income countries, despite urgent labour shortages. The Organisation for Economic Cooperation and Development (OECD) reported a 21% drop in work-related migration to its member states last year. The decline is attributed to rising political opposition and tighter visa regimes, particularly in the UK and New Zealand. Ana Damas de Matos, a senior policy analyst at the OECD, noted that the UK's reforms could exacerbate labour shortages. Across the European Union, around two‑thirds of jobs created between 2019 and 2023 were filled by non‑EU citizens, according to the International Monetary Fund.
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WEBINAR

Economic outlook 2026 for workforce and reward planning

2025 delivered volatility, disruption and cost pressure. For senior HR leaders, the economic outlook for 2026 will shape workforce strategy, pay decisions and long-term planning.

This on-demand webinar from Euromonitor International brings together global forecasts, GDP projections and inflation trends, with a clear view of the risks and growth drivers ahead. Hear directly from Euromonitor’s research experts on how prolonged market volatility, trade tensions and geopolitical pressures are expected to affect income growth, consumer confidence and business conditions into 2026.

Designed for senior decision-makers, the session helps HR leaders understand the macroeconomic forces influencing labour markets, reward affordability and organisational resilience, so you can anticipate change and support informed leadership decisions.

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STRATEGY

VW management to continue cost cutting

Volkswagen CEO Oliver Blume has said Europe's largest carmaker will continue to cut costs as the company seeks to remain competitive in the face of sector-wide challenges. "The task now is to continue to consistently reduce our costs in order to remain competitive in the long term," Blume said. Volkswagen CFO Arno Antlitz said the German automaker must generate more revenue with fewer resources. "This requires even stricter cost management and investment discipline . . . We need more Group synergies, less complexity and a strengthening of our market position in the USA and other regions outside Europe," Antlitz said.

UK government funding package to protect Ineos jobs

The UK government is investing £120m (€137m) in a support package for the Grangemouth industrial complex in Scotland. Owners Ineos will contribute £30m to the joint investment deal. The complex uses shale gas brought in by ship from the United States to produce ethylene, a key ingredient in plastics used in advanced manufacturing and the automotive and aerospace industries. The site, the UK's last ethylene plant, employs about 500 people. The UK government has warned high energy costs have caused problems for the chemicals industry across Europe.
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WORKFORCE

Dutch workers to see higher net pay next year

Workers in the Netherlands will experience a net pay increase in 2026 due to new tax measures and wage adjustments, according to ADP. An employee earning a modal gross salary of €3,704 will see a net gain of €26 monthly, while minimum-wage workers will benefit the most with a €51 increase. The first income tax bracket will have a lower rate, and the threshold for the 442-euro bracket will rise.

Portugal's foreign worker influx declines

The Bank of Portugal has reported a decline in foreign workers entering the country, with numbers dropping to 12,000. Immigration has sharply slowed since a peak in 2022-2023. In the first eight months of 2025, entries decreased by 35% compared to 2024. Meanwhile, departures of foreign workers have surged, increasing by nearly 40% in 2024 and doubling since 2022. The trend poses a structural challenge for Portugal's economy, which relies on immigration to address an ageing population and labour market needs.

Luxembourg's labour costs surge 4.6% in third quarter

Luxembourg's hourly labour costs increased by 4.6% in Q3 2025, the highest growth this year, according to Eurostat data. The rise reflects escalating expenses for companies, including salaries and social contributions. Previous quarters saw increases of 3.6% and 2.8%.  Luxembourg ranked 13th in the EU for annual labour cost growth, with Bulgaria leading at +12.4%.

EU steps in to aid Northvolt workers

The European Union has approved compensation for over 5,000 individuals who lost their jobs following the bankruptcy of Northvolt, the Swedish electric battery manufacturer, in March. In total, laid-off workers are to receive an estimated €14.2m in support from both the EU and Swedish authorities
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LEGAL

University of Luxembourg faces bullying claims

Staff at the University of Luxembourg's Faculty of Law, Economics and Finance have reported a toxic work environment amid allegations of bullying and mismanagement. Ongoing court cases highlight such issues, including claims of discrimination in promotion procedures. An assistant professor said that evaluation criteria for promotions were changed post-factum, leading to confusion and frustration. Concerns have also emerged regarding recruitment practices, with claims of bias in candidate selection. The university says it is working to improve internal HR practices and address ongoing concerns.
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INTERNATIONAL

Delayed US jobs report reveals hiring slowdown in November

US job growth slowed sharply in November, with only 64,000 jobs added and the unemployment rate rising from 4.4% in September to 4.6%, the highest in over four years. The Labor Department report, the publication of which was delayed due to the six-week federal government shutdown, also showed a net loss of 105,000 jobs in October, primarily due to federal workforce reductions. “The US economy is in a jobs recession,” said Heather Long, chief economist at Navy Federal Credit Union. “The nation has added a mere 100,000 in the past six months. The bulk of those jobs were in healthcare, an industry that is almost always hiring due to America’s aging population.”

Mass layoffs at Guinea's Simandou mega mine

Guinea's Simandou mining project, touted by the country's military government as key to local economic transformation, is laying off thousands of workers just as it begins iron ore exports. Employment peaked at over 60,000 during construction, but only about 15,000 workers will be needed for operations. Chris Aitchison, managing director at Rio Tinto-Simfer, which runs the mine, said he was concerned about the risks raised by sudden job losses, which the industry refers to as demobilisation. "It's the what's next?" he said. "In other jurisdictions when we demobilise there's a pathway for employees or people that have been engaged in execution to move to other projects." The government has promised future employment through infrastructure initiatives, but many remain sceptical about the project's ability to deliver prosperity.

Illegally sacked Qantas workers to get millions

More than 1,700 Qantas ground staff who were unlawfully dismissed during the Covid pandemic will share a A$40m payout. The Federal Court found that Qantas acted against the Fair Work Act by replacing staff with outsourced contractors. Justice Michael Lee said: "To deprive someone of work illegally is to deprive a person of an aspect of their human dignity." The airline was ordered to pay $120m in compensation and an additional $90m penalty, of which $50m goes to the Transport Workers' Union. TWU national secretary Michael Kaine described the case as a "David and Goliath" battle. “Illegally outsourced Qantas workers can now finally begin to move on,” he said. “These workers loved their jobs, and this . . . A$40m from the largest-ever penalty on an employer will go a long way towards compensating them for the damage Qantas inflicted on their lives.”

Labour codes set to empower women in India

The All India Organisation of Employers (AIOE) has released a white paper titled "Breaking the Glass Ceiling: How the Labour Codes Boost Women's Participation in India's Workforce." It highlights that the new labour codes, effective from November 21, 2025, aim to enhance women's workforce participation by making employment safer and more accessible. The female labour force participation rate has risen from 23.3% in 2017-18 to 41.7% in 2023-24. The paper emphasises that while the reforms are promising, their success relies on effective implementation by employers and supportive institutions, not just legislation.
 
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