Overall Score

5.5 in 2015 5.3
0 2.5 5 7.5 10

Key Finding

Labour market flexibility will continue to be the main issue for French employers. The country’s high and growing rate of long-term unemployment will increase the difficulty of recruiting the skilled personnel firms require.

BREAKDOWN OF SEVEN INDICATOR SCORES

Scores
0 2.5 5 7.5 10
Education
flexibility
3.8
Labour market
participation
5.0
Labour market
flexibility
8.2
Talent
mismatch
6.7
Overall wage
pressure
5.3
Wage pressure in
high-skill industries
5.5
Wage pressure in
high-skill occupations
3.9

COUNTRY OVERVIEW

View from the ground

France experienced vigorous economic activity in the first quarter of 2016 and growth is expected to be 1.4 per cent this year. Labour market reforms are providing businesses with more flexibility, which in turn could then be encouraged to hire more workers and increase their output. The labour market is already taking advantage of recent Government support for the employment market, including easier access to regulated professions and reduced labour costs, which will likely result in a beneficial competitive environment. The forecast unemployment rate is under 10 per cent for the end of the year. The region, therefore, could resist the current economic uncertainty witnessed internationally.

Tina Ling, Managing Director, Hays France & Benelux

Tina Ling, Managing Director, Hays France & Luxembourg

Country Profile

Household consumption is rebounding in France, fuelled by the lack of inflationary pressures and a slowly recovering labour market.

The country’s labour laws continue to cause controversy and stir public debate, although it is expected to support more sustained job creation in the private sector.

Tina Ling, Managing Director, Hays France & Luxembourg

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