The manufacture of chemicals, pharmaceuticals, rubber and plastic products in the EU-27 was not only concentrated in the larger Member States, it was also focussed within the large enterprises (employing >250 persons). SMEs (employing <250 persons) accounted for only one third (33.6%) of the value added generated in 2004 (Eurostat, 2007). Within the sub-sector of manufacture of chemicals and chemical products large enterprises dominated even more, accounting for a little over three quarters of the value added generated (75.9%). The importance of large enterprises was particularly marked in Ireland, accounting for over four fifths (85.1%) of all value added in chemicals, pharmaceuticals, rubber and plastic products manufacturing. This share was also over 70% in Belgium, Germany, Denmark, Hungary and Slovenia. In contrast, a majority of value added in the sector was generated by SMEs in Italy (55.5%), in Portugal (62.9%, 2003) and Latvia (67.3%, 2003) (Eurostat, 2007). Despite the industry being dominated by large firms, the large firms, which used to be vertically integrated, have been very active in reconfiguring, restructuring and specialising over the last decade, focussing more on core activities and specific segments to exploit scale advantages.
Figure 4.6 Share of value added by enterprise class, EU-27, 2004
Table 4.7 Share of total enterprises by enterprise size
Shares, 2005 Total share changes, 1999-2005
<50 employees
50-249 employees
>250 employees
<50 employees
50-249 employees
>250 employees
EU 87.8 9.8 2.4 -0.3 0.6 -0.3
EU15 86.5 10.8 2.8 -0.3 0.6 -0.3
NMS 91.3 7.1 1.5 -0.9 1.1 -0.2
Winning 89.0 8.7 2.3 -1.6 1.3 0.2
Losing momentum 78.4 16.8 4.8 -0.2 0.6 -0.4
Upcoming 91.4 7.2 1.4 0.0 0.3 -0.3
Retreating 87.2 10.3 2.6 1.3 -0.2 -1.1
Source: Eurostat/TNO
While the generation of value added is clearly concentrated in large enterprises in the chemicals and chemicals products sector, the share of large enterprises differs between country groups. While large firms (>250 employees) are most concentrated in the EU-15 and more specifically the country group losing momentum (i.e. in employment performance!), it is the winning and upcoming country groups that have an above average share of small enterprises. One interesting trend across country groups is the declining share of small and large enterprises, whereas medium-sized enterprises expand their share.
Gender structure
The share of male workers in the chemicals, pharmaceuticals and rubber and plastic products sector is similar to the overall economy (68% vs 65%). However, the share of males is much higher in rubber and plastic products sector (72%) than in chemicals and pharmaceuticals sectors (64%). Large differences also exist between countries. Shares of male employees are relatively low in Cyprus (50%), Denmark (54%), Slovenia (56%), and high in the Czech Republic (56%), Lithuania (76%) and the Netherlands (80%) (Eurostat, 2007).
Figure 4.7 Labour force characteristics EU-27, 2006
Source: Eurostat, 2007
Employment, part-time work and self-employment by sub-sector
The chemicals, pharmaceuticals and rubber and plastic products sector is characterized by a high degree of full time jobs, with 93% of all employment being classified as full time compared to 86% for the economy as a whole (see Figure 4.7). The low share of part time work – often associated with lower pay – is complemented with high average pay for the overall sector (€39k, 2004) compared to the economy average (Eurostat, 2007).
The high average pay is sustained by high labour productivity levels in the different sub-sectors. Pay levels differ substantially between sub-sectors, with the pharmaceuticals sector paying € 53k per worker being highest and the plastic products sector with € 29k being lowest in rank (Eurostat, 2007). Furthermore, the sector has very low levels of entrepreneurial and self-employed activity with 6% of the workforce self-employed in the chemicals and pharmaceuticals sector (NACE 24) and 8% in the rubber and plastic products sector (NACE 25) (see Table 4.8 and Table 4.9 respectively). This can be explained by the maturity of the sector, where employment is concentrated in large and medium sized enterprises. For detailed data of the sub-sectors, see the Tables xx 2.5.1 and 2.5.2 in the data annex.
Table 4.8 Employment and share of self-employed and part-time work in chemicals and
Source: Eurostat/TNO. Note: Due to statistical differences, the sum of employment the categories winning, etc is slightly different from the employment numbers stated for the EU as a whole.
Table 4.9 Employment and share of self-employed and part-time work in rubber and plastic products, 2006
Source: Eurostat/TNO. See note table 3.8.
Age structure of industry and changes in age structure by job function
Compared to the age structure of the overall economy, the chemicals, pharmaceuticals and rubber and plastic products sector has a below average share of younger employees (15-29 years) of 20% compared to 24% in the overall economy (see Figure 3.7). However, large differences between sub-sectors exist. While only 18% of the employees in the chemicals and pharmaceuticals sector fall in the 15-29 years category this applies to 24% in the rubber and plastic products sector (Eurostat, 2007). Consequently, the overall sector had a correspondingly higher proportion aged between 30 and 49 years (58.2%) compared to overall economy (54.2%).
Interesting patterns can also be observed when we look at the age structure of different job functions. Firstly, large differences exist between the old and new Member States. In the new Member States (EU-12) the age segment 15-39 years (y) shows the highest growth across job functions. This can largely be attributed to the restructuring dynamics since 1990 that has created opportunities for younger people to take on job functions, particularly in management,
that in the EU-15 are occupied by more senior age groups. In the EU-15 a shift in the high professional job functions from the 15-39y to the 40-49y segment can be observed, whereas in manual and technical functions a shift to the 50-65y and 40-49y segment has occurred. This is indication that the EU-15 workforce in the sector is structurally older. This is likely to have been caused by the restructuring over the last decade that led to a negative employment growth, limiting the demand for young people moving in the industry. As many technical functions require tacit knowledge, this potentially poses a skills gap when the older generation is retiring over the coming years.