Will France follow the same path as Germany and the United Kingdom, but 10 years later? Achieving full employment is in any case the objective of the Government and the cornerstone of all the economic policies implemented by the Head of State since 2017.
While Europe has been split in two for two decades, with countries like Spain and Italy to the south that have never managed to lower their unemployment below 5% of the active population and to the north economies that have rates worthy of “glorious 30”.
This is the case of our two great neighbors: Germany fell below 5% according to Destatis, therefore to “full employment” pointed out by Emmanuel Macron, in 2014. Since then, this rate has even dropped to 2.9% at the beginning of year. . The UK followed suit with its own achievement of “full employment” in 2015 and a rate that has since continued to decline to reach 3.8% in 2023.
France, with an unemployment rate of 7%, falls in the middle. Between 8-12% unemployment in southern Europe and 3-4% in northern Europe. But when you zoom in on the map of France, you quickly realize that unemployment is far from evenly distributed throughout the territory.
At the departmental level, the differences in unemployment rates range from single to triple. From 4.1% in Cantal to 11.7% in Pyrénées-Orientales, passing through 5.6% in Paris, 8.6% in Bouches-du-Rhône, 6.2% in Rhône or even 10 .3% in Aisne. The France of employment and unemployment reflects a wide variety of situations.
A staggering unemployment rate
While some territories are already or almost at full employment, such as those located on the North Atlantic coast, in the Alps or even the southern departments of the Massif Central, others are still plagued by mass unemployment, such as those in the eastern Mediterranean. edge where the rate is above 10% or even the old industrial regions of the north.
A map of France in good economic health seems to be taking shape before our eyes, of which, however, we must be careful.
This is especially the case in Cantal and Lozère which, with unemployment of 4.1% and 4.6% respectively of the active population, appear to be the most dynamic departments in France. The reality is very different: an aging population, a constantly decreasing number of workers (60,000 for Cantal, 33,000 for Lozère), an average standard of living below the national average (less than 21,000 euros/year). They can hardly be taken as a reference in the framework of an employment policy.
“I do not believe in the fatality of unemployment at 7%”
3 questions to Thibaut Guilluy, High Commissioner for Employment
BFM Business: How do you explain these differences in unemployment rates?
SG: There are historical explanations. When you look at the Vendée, there is an organization of the local economy based on ETIs and SMEs that serve as traction in this territory. In Vitré, in Brittany, there is a culture of cooperation between the Department, the Region, the employment services… When a company wants to develop, it has a single interlocutor and does not have to knock on 50 doors. It changes everything. It’s a France Travail committee ahead of time!
BFM Business: Some think that France is already at “full employment” and will not go any lower…
SG: I do not believe in the inevitability of unemployment at 6-7%. Look at Les Herbiers, they are at 3%! Solving the unemployment problem requires full order books and activity. But there we realize that there is a gap and tensions in terms of employment. When you have 400,000 unfilled jobs and unemployment is still 7%, that’s not normal. We need a more efficient employment service that allows each person to find their way back to work and each company to recruit the talent it needs. France Travail is like a human resources service for the whole Nation, it will be launched.
BFM Business: France Travail, which is supposed to solve your problems, will however take time to install…
SG: He currently has experience in 18 departments in 18 areas of employment. But we are going to increase quickly. We are going to start by supporting 40,000 RSA beneficiaries in these areas of employment, offering joint support with the social workers of the departments and of Pôle Emploi, which guarantees the lifting of social brakes in particular. We plan to gradually increase to 250,000 for the next year.
On the other hand, some highly populated areas have unemployment rates above the national average but are economically strong nonetheless. We can mention this time Montpellier (9.4% of the unemployed) or Bouches-du-Rhône (8.6%).
More executives, less unemployment
At the local level, both demographic and socioeconomic dimensions are essential explanatory elements for understanding the unemployment rate. Thus, large cities such as Paris, Lyon or Bordeaux have low rates, around 1 point below the national average, because they concentrate a large population of executives.
However, it is this category of wage earners that, at the national level, has the least chance of being unemployed with almost full employment (4% according to INSEE).
However, some less urbanized areas are exceptional successes in terms of employment. This is the case in the northern departments of Auvergne-Rhône-Alpes. Ain, Savoie and Haute-Savoie have unemployment rates among the lowest in the country, around 5%.
Rich and dynamic territories, they benefit in particular from the influence of neighboring Switzerland, which affects economic activity and employment. Wealthier than the national average (25,400 euros average income), the Savoyards also benefit from the very important tourist activity in the region.
However, other less wealthy territories are also near full employment. Departments generally located in the west such as Mayenne, Manche or Vendée which, at 5.1%, has one of the lowest unemployment rates in France. It is in this latter department that the municipality of Les Herbiers is located, to the south of Cholet, which can boast of having the lowest unemployment rate in France (3.3% of the active population).
Vendée’s amazing success
“The dynamism of the Vendée is the result of decades of work, believes Arnaud Ringeard, president of the Vendée CCI. We don’t have very large companies, but we do have a very large number of SMEs and medium-sized companies, we have 30,000 of them. Above all, we have been able to maintain a fabric of industrial companies since they represent 30% of the total compared to 12% at the national level. We are at the level of France 50 years ago!”
From the Bénéteau nautical company to the Gautier furniture manufacturer, including the Briand construction specialist or even the Sodebo and Fleury Michon agri-food groups… The Vendée has a large number of flourishing companies, and this, in very diverse sectors. Employment is not subject to the cycles and ups and downs of this or that sector of activity, as occurred in the north of the country with de-industrialization and the setbacks in the steel industry.
A success in the field of employment, all the more notable since the department has one of the lowest rates of executives in France in its population. They represent only 4.8% of the inhabitants compared to 9.5% nationwide. However, it is the areas with the highest rate of supervision (big cities) that have the least unemployment in general. Unemployment rates for categories that tend to be hardest hit, such as workers, clerks, and intermediate professions, are much lower than elsewhere.
Local actors evoke a “pro business” mood from public actors who facilitate establishments, but also relatively small companies, closer to employees and a general mood focused on work.
“At the chambers of commerce, we organize internships for university students during school holidays, explains the president of the CCI de Vendée. We make 2000 internship agreements a year. Nationally, we are second only to the Lyonnaise metropolis.”
Source: BFM TV
