The rise of populism across Europe is affecting corporate decision-making, according to a major new study.
Researchers from Glasgow Caledonian University have analysed employment and industrial data from 29 countries as part of a £2.7 million UK Research and Innovation and EU-funded study into the drivers of extremism and the economic forces shaping modern labour markets.
They found some manufacturing firms are bringing production back to domestic markets due to political pressure.
The study reveals that firms are responding to the rise of populist politics and growing instability by reshoring production at great economic cost.
Professor Umut Korkut, of Glasgow Caledonian University, said: “Our analysis shows that reshoring is not always a purely economic decision but is heavily influenced by market dynamics and political pressures.
“These shifts can disrupt global supply chains and contribute to labour market volatility. At the same time, they reflect the powerful role of protectionist narratives in shaping corporate behaviour.”
The study concludes that ensuring workers have secure jobs with upskilling opportunities is key to combating the rise of political extremism across Europe.
The last European Skills and Jobs Survey revealed that 38% of workers fear losing their jobs.
Professor Korkut added: “Policymakers must recognise that labour market volatility, even if subjective, poses a serious threat to social and political stability.
“By fostering stable and secure employment conditions, we can counteract the narratives that lead to protectionist and extremist ideologies.”
Researchers analysed employment trends as part of the Horizon Europe and UKRI-funded OppAttune: Countering Oppositional Political Extremism Through Attuned Dialogue, which brings together 17 universities from 15 countries.
