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Edition October 16, 2017 - Crédit Agricole S.A.
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  • Edition October 16, 2017

    France – Labour market reform: Towards greater flexibility

    The long-term trend in the French labour market is a rising unemployment rate and the development of "mass unemployment". Despite going into reverse in the second half of 2015, the unemployment rate remains high. In view of this, the provisions in the reform of the French labour code are designed to make the labour market more flexible while guaranteeing workers some protection.

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  • Content:

    - Unemployment rate still high and easing only slightly
    - Key points in the reform
    - This reform underpins the ongoing recovery but its short-term impact will be gradual
    - Mid-term: greater flexibility and predictability in labour market management

  • Extract:

    The reform encourages a shift towards the decentralisation of collective bargaining to company level. It simplifies the arrangements for this and broadens the scope for reaching agreements at individual companies, especially as regards working hours in the event of economic difficulties. Although the role of individual companies will be increased, industry sectors retain some jurisdiction and are to be granted new reserved areas. It is also worth emphasising that some provisions will ensure less rigid arrangements for terminating employment contracts, delivering greater flexibility and less legal uncertainty. Other measures should facilitate social dialogue, while another plank of the reform aims to secure career tracks.

  • France: Wages and productivity per capita

    Decentralising negotiations is that wages will move more in line with productivity gains. As was observed in the wake of the 2008 crisis, real wages continued to grow faster than productivity gains, partly due to a labour market where negotiations gave scant regard to businesses, delaying their adjustment to economic conditions.

    France: Wages and productivity per capita
  • Associative topics : Economics | France


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