Logo ecsa group 300x

FRANCE: Positive Signs for the Labour Market, Challenge of Structural Reforms

In 2017, the GDP (+1.9%) recorded its highest growth since 2011. The increase of companies’ investments was crucial together with the households’ consumption and the accelerating exports at the end of 2017. In January, the industrial Purchasing Managers’ Index PMI (58.4) was just under its record of the last 81 months scored in December. Companies are hiring as it has not been the case for the past ten years and the number of open-ended contracts reached a new record. However, the country still suffers from an unemployment rate of over 9% and up to 15% in the age range 15 to 29.

Parliament ratified the government labour law reform. The government is persuaded that a more flexible labour law (softening of the layoff, maximum of repayments) could encourage companies to create new jobs. This reform and the tax reform represent small steps in order to counteract the loss of international competitiveness. Thanks to the reduction of the deductions, since 2012 the percentage increase of the unit wage costs has been lower than in Germany (+5.4% vs. +11.4% in Germany). However, according to a recent study of the research Institute Coe-Rexecode, this trend is not enough to recover the gap accumulated since 2000 (+29% vs. +18.9% in Germany). Furthermore, the part of French exports on the total exports of the countries in the euro zone has decreased from 17% in 2000 to 12.9% in 2017. This development partly explains the increase of the deficit of the current account balance-sheet. The same institute stresses that European importers judge the quality of the French export products, which also suffer of a bad price-quality share, as average.

April 2018

ECSA Chemicals AG
Burgauerstrasse 17
CH-9230 Flawil (Switzerland)

Via Luigi Favre 16
CH-6828 Balerna (Switzerland) 

T. +41582119100
F. +41582119101

ECSA Maintenance AG
Burgauerstrasse 17 
CH-9230 Flawil (Switzerland)

Via Luigi Favre 16 
CH-6828 Balerna (Switzerland)

T. +41582119300
F. +41582119301

ECSA Energy SA
Via Luigi Favre 16 
CH-6828 Balerna (Switzerland)
T. +41582119500
F. +41582119501

con Unico Socio
Via Lavoratori Autobianchi 1 
I-20832 Desio (MB)
(Stabile n. 15 - Polo Tecnologico della Brianza)
T: +39 0362 625 421
F: +39 0362 304 361
P.IVA IT00222470130

Porta Ticino Easy Stop SA
Via San Giorgio 37
CH-6877 Coldrerio
T. +41582119910
F. +41582119911

This website uses cookies to enhance your experience. By continuing, you are agreeing to our Cookie Policy.