The steel sector is a major contributor to EU economy
According to Oxford Economics, a firm of consultants, the steel-making sector is a major contributor to the European economy, bringing jobs, investments, consumer spending and taxes to most EU member states.
Steel manufacturers have a significant presence in 22 of the 28 EU countries, directly employing 320,000 workers and making a €20.7 contribution to GDP. But much more significantly, they purchase €103 billion worth of supplies from other industries, supporting a large amount of ‘indirect’ GDP and jobs in their EU-based supply chain. Taking into account activity ‘induced’ by the wage-funded spending of those working in the industry and in its supply chain too, some 2.5 million jobs are supported in total through the direct, indirect and induced channels of economic impact. This generates €128 billion of GDP across the EU-28, which is more than the GDP of the state of Berlin. The so-called ‘multipliers’ for GDP and jobs – the ratios of total activity to direct activity alone – are therefore unusually high, at 6.2 and 7.7 respectively.
In the Czech Republic, steelmakers account for 85,000 direct and indirect jobs with a gross added value of € 35 094 per person. The steel sector therefore has higher added value per person than other sectors and contributes significantly to the Czech economy.
To read the full study, please go here.