Unemployment levels have dropped in March and April in France, according to the latest survey carried by the National Institute of Statistics and Economic Studies (INSEE). These were the first two consecutive months when the unemployment level has decreased since the economic crisis began. France is also about the change its Labor Law in order to help employment go up.
According to INSEE, and also to separate announcements made by the President and the Labor Ministry, the first quarter of 2016 has brought a slight decrease in unemployment levels in France. March and April were the two months when these levels have dropped the most. While in March, the numbers show a decrease of 0.5%, April has brought another 0.6% drop. This was also the first time since 2008 when France had a period of two consecutive months with unemployment levels on a descending slope. According to analysts, the slowdown is mainly due to the incentives granted by the Government to French companies.
The employment level has maintained stable with figures showing that employment in the ranks of active population aged 15 to 64 years was 64.6% in the first quarter of the year.
On a year-to-year basis, statistics show a slight increase in employment level. Compared to the last quarter of 2015, the beginning of 2016 brought a 0.2% rise, while on an annual basis the employment rate increased by 0.5%. The same 0.5% growth was registered among French citizens with ages between 50 and 64.
Good news was also received in terms of full time employment which stood at nearly 60% in the first quarter of the year. Permanent employment in the ranks of young people was at the rate of 48.9% in the first quarter, 0.2% higher than in the last quarter of 2015. Temporary and fixed-term employment levels dropped by 0.2% over the year and were at 7.3%.
The indicators seem to be influenced by the Government’s decision to modify the labor legislation which would make it easier for French companies to hire and fire workers.
For more information on the new employment legislation and its content, we invite you to contact our French law firm.
There are no comments