Middle East Conflict Drives Up Energy Prices, Threatening 1.3 Million EU High-Energy Jobs

On June 3, European Commissioner for Jobs and Social Rights Roxana Mînzatu warned that energy-intensive sectors in the EU—including automotive, construction, metallurgy, chemicals, and transport—could collectively lose up to 1.3 million jobs this year due to sharply rising energy prices triggered by the Middle East conflict. The warning was issued during the launch of the EU’s Spring 2026 Economic Policy Guidelines. According to European Commission estimates, the automotive sector will be hardest hit, with potential job losses reaching as high as 600,000. Combined job cuts in construction, metallurgy, chemicals, and transport could total 56,000. Employment in battery-related projects faces pressure affecting approximately 85,000 positions, while photovoltaic manufacturing could see 58,852 job losses. The steel industry, grappling with both decarbonization policies and soaring energy costs, is expected to shed an additional 4,500 jobs. Currently, employment in EU manufacturing stands at around 30 million, while service sector employment totals nearly 87 million. Additionally, low-income households in Europe are projected to see their spending on vehicle fuel rise by an extra 1.4% of household income. Mînzatu urged EU member states to implement targeted support measures to cushion the impact of rising energy costs on vulnerable groups. An economic forecast report released by the EU in May noted that the Middle East conflict has already had tangible adverse effects on the European economy, dampening growth and driving up inflation.