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Anxiety about unemployment, concerns about inflation and fear of crime Findings of the GfK survey, Challenges of Europe 2005 Nuremberg, 25 July 2005 - Unemployment remains top on the list of concerns among European citizens. In six of the nine countries covered by the GfK Challenges of Europe survey, this was the problem most respondents said needed to be solved. There is a significant gap between this major concern and the next most worrying issues which include the stability of prices and purchasing power, crime and the healthcare system. Since 2001, unemployment has been the most important topic for Europeans. In six of nine countries in Europe, this was what most people indicated as the situation requiring most urgent action in their country. Brits are by far the least concerned in this respect with only 4 per cent expressing concerns about unemployment. In the Netherlands, only 8 per cent see the employment situation as a worry and in Russia only 13 per cent. In all of the other countries surveyed, creating jobs is given the highest priority, with Germany in the lead where 81 per cent now see this as urgently requiring action - 4 per cent more than in the previous year. Next is Poland, where 63 per cent of the population expressed their concern, and France with 58 per cent. With 47 per cent in Austria, 41 per cent in Spain and 38 per cent in Italy, unemployment is the situation which people consider to require more urgent action than any other issue by far. Concerns about inflation predominant in Russia Concerns about prices and diminishing purchasing power have increased considerably compared with the previous year. One in five Europeans worries that inflation and lower spending power will have a negative effect on their lives. An above-average proportion of respondents in Russia, a country included in the survey for the first time this year, indicated that price stability and maintaining purchasing power at a good level were considered issues requiring the most urgent action in their country. 32 per cent of Russians said these were top priority, while in France and Italy people were also very anxious about these issues with 29 per cent and 25 per cent respectively. In both of these countries, only 20 per cent considered these to be pressing issues in 2004. In the Netherlands, almost one in five are concerned about these particular issues, which only worry one in ten Germans, Austrians, Spaniards and Poles. In the UK, the price trend and purchasing power were of minor concern with only 3 per cent believing that these require urgent action. By comparison, the demand that action be taken regarding crime has dropped from being the number two concern to the number three, with currently 13 per cent indicating this as a worry. In 2002, the year following the attacks on the former World Trade Center, the issue of crime reached a record level with 28 per cent expressing that this was their major concern. Significant differences emerge in the various countries: 42 per cent of Brits cited this as a major concern requiring urgent action (the survey was carried out before the London attacks), followed by the Dutch with 26 per cent. In France and Italy, a comparatively high number of people also considered crime to be a problem. Healthcare ranks in fourth place of the tasks requiring attention most urgently. In the UK, Poland and Italy, this was given particularly high priority. This issue was named more frequently than in the previous year in these countries. In Germany and the Netherlands, healthcare was not seen as an issue requiring urgent action. The problem area of housing and rent is in fifth place when it comes to action required, thanks, in particular, to the statements made by Russians and Spaniards. Germany: unemployment reaches second highest level in 20 years The list of worries of Germans shortly after the much-debated Hartz IV reform package reflects the widespread uncertainty among Germans with regard to the employment market and economic development. The threat of mass unemployment continues to affect the overall mood in Germany. In this year's survey, the issue of unemployment has made all other problems secondary. With an increase of 4 percentage points to 81 per cent of responses, the number of those who see unemployment as the biggest problem has once again risen considerably, following the increases of 1 per cent in 2003 and 2 per cent in 2004. The proportion of those indicating unemployment as the biggest problem has only been higher once before in 1998 when it stood at 86 per cent. There is growing convergence between the statements made by people living in eastern and western Germany. This applies in particular to concerns about unemployment. While there has been a slight increase in the number of eastern Germans citing this as a problem to 86 per cent, the number of western Germans expressing their concern has risen by a considerable 5 per cent to 80 per cent. The discussion surrounding how to secure sufficient income to live at the top end of the age pyramid is easing off considerably. Although the issue of pensions is seen as the second most pressing problem in Germany, at 12 per cent the urgency has let up compared with 20 per cent in the previous year. Concerns about the general economic development stood at the same level of 12 per cent, with this figure down on the previous year as well. Anxiety about overpricing (11 per cent) has moved up three places in the hierarchy of concerns among Germans, into fourth place, compared with 2004. The survey The results presented here are taken from the "Challenges of Europe" survey. GfK Marktforschung surveyed a total of 11,200 people in Austria, France, Germany, Italy, the Netherlands, Poland, Spain, the UK and, for the first time this year, Russia. The survey is based on a simple, open-ended question which is put in the same way every year: ‘In your opinion, what are the most important issues to be tackled in … (country concerned)?' Those surveyed are not given any restrictive options for their answers and multiple choice answers are also acceptable. GfK-Nürnberg e.V. GfK-Nürnberg e.V. is an association which was established in 1934 for the purposes of promoting market research and consists of more than 600 companies and individuals. The object of the association is to carry out basic research, to promote continued professional development and training of market researchers and to make its regular surveys available to its membership. It has a majority shareholding of 58 per cent in GfK Aktiengesellschaft. The GfK Group The GfK Group, the No. 5 market research organization worldwide, achieved sales of EUR 672 million for financial year 2004 (excluding NOP World) in its five business divisions, Custom Research, Retail and Technology, Consumer Tracking, Media and HealthCare. In addition to 13 German subsidiaries, the company has over 130 subsidiaries and affiliates located in 63 countries. Of a current total of more than 7,000 employees, approx. 1,500 are based in Germany. For further information, visit our website: www.gfk.com. On 1 June 2005, GfK acquired the market research group, NOP World, from British media group, United Business Media. With over 1,500 NOP employees joining GfK, the Group has considerably expanded its team of market research and marketing experts. NOP World and the GfK Group recorded joint sales of almost one billion euros in 2004.
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