Why is the unemployment rate so high in France?

The reason for the simultaneous high unemployment and lack of workers is a massive skills mismatch. France simply does not produce enough of the skilled workers it now needs. “There’s a real skills deficit because many young people have turned their back on the industrial sector,” said Guinard.

Does France have high unemployment?

On a national level, France had an unemployment rate of 8.62 percent in 2020, a number which has been declining overall in recent years.

What causes high rate of unemployment?

Inadequate education and lack of productivity is costing jobs. Unemployment increases progressively with decreased educational levels; and the education system is not producing the skills for the labour market. Labour supply is affected by the increase in the number of job seekers over the years.

Does France have a labor shortage?

France looks set for an overall labour shortage of roughly 3.9 million by 2050. France’s working age population (20-64) is expected to decline by approximately 1.5 million by 2050, according to the United Nations. Cedefop predicts France will have Europe’s second-highest total amount of job openings in 2021-2030.

Does France have a strong economy?

With a GDP of approximately $2.6 trillion in 2020 (down 8.2\% in 2020, +1.5\% y-o-y growth in 2019), France is the world’s fifth-largest economy and Europe’s third-largest economy after Germany and the UK. It has substantial agricultural resources and maintains a strong manufacturing sector, despite a recent decline.

What is the unemployment rate in France?

The unemployment rate edged up to 8.1\% in the third quarter – the same rate seen at the end of 2019 – up from 8.0\% in the previous three months, the INSEE statistics agency said. Analysts polled by Reuters had forecast an unemployment rate of 7.8\% for the third quarter.

What is the real unemployment rate in France?

In Q2 2021, the number of unemployed people in France (excluding Mayotte) reached 2.4 million, down by 16,000 over the quarter. As in the previous quarter, the ILO unemployment rate was virtually stable (–0.1 points) at 8.0\% of active population, after a year of strong fluctuations in 2020.

What is France’s unemployment rate?

8.62 percent
This statistic shows the unemployment rate in France from 1991 to 2020. In 2020, the unemployment rate in France was around 8.62 percent….France: Unemployment rate from 1991 to 2020.

What could be the results of unemployment in any country?

For the individual, unemployment can cause psychological distress, which can lead to a decline in life satisfaction. It can also lead to mood disorders and substance abuse. The national average belies the deepness of unemployment in certain parts of the country. In some communities, it is as high as 60\%.

Is unemployment the biggest problem facing France’s economy?

“Unemployment is our biggest economic problem, along with the trade deficit and the high public debt,” explains Paris-based economist Philippe Crevel. “In France, it is higher than the European average. We are as badly affected by it as Italy, Spain, or Greece.”

Why is the cost of labour so high in France?

The cost of labour to employers in France also includes social security contributions that are higher than in most other countries. There is a catalogue of other issues, including welfare, that is alleged to discourage people taking low-paid work, and extensive regulation of business. The result, it is argued, is a persistent unemployment problem.

How many people in France don’t have a job?

Almost 10 percent of all French adults don’t have a job. For those who are under 25, that figure rises to almost 25 percent. “For the last 15 years, there have been attempts at improving the labor market situation.

How can Macron reduce unemployment in France?

In order to reduce France’s unemployment sustainably, the economist has proposed a series of reforms: lower social security contributions, better education, more investment and more expertise. Crevel believes that Macron’s chances are good: “He is young, energetic and does not belong to any of France’s traditional political parties.”