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Popular PDF

Employment Outlook 2018 - OECD

Contacts St phane Carcillo 33 1 45 24 80 31 stephane carcillo oecd org or Alexandre Georgieff 33 1 85 55 47 85 alexandre georgieff oecd org

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File name: Employment-Outlook-France-EN.pdf


	OECD Employment Outlook 201
© 
OECD 201
OECD Employment Outlook 
publication page
How does FRANCE compare?
Employment Outlook 2018
July 2018
DOI: 10.1787/empl_outlook
201
Labour market developments
France
Note
OECD weighted average (based on 29 OECD countries in Panel B, not 
including Chile, Iceland, Korea, Mexico, New Zealand and Turkey).
Source
OECD calculations based on OECD Ec
onomic Outlook Database (No. 103), June 2018
and quarterly national 
accounts
RECENT 
LABOUR MARKET
TRENDS AND PROSPECTS
Across the OECD countries, labour market conditions 
continue to improve and in the first quarter of 2018, 
the average employment rate was about 
percentage points above its pre
crisis peak. 
OECD
employme
nt and unemployment rates are 
also projected to keep improving in 2018 and 2019. 
However, at 0.6% in the fourth quarter of 2017, the 
year
on
year growth rate of real hourly wages 
remained disappointingly low, almost one 
percentage point lower than before t
he crisis for 
similar levels of unemployment.
The decline in unemployment, which began in 
the second quarter of 2015, is continuing in 
France. At 8.8% in the first quarter of 2018, the 
nemployment rate has 
decreased
by 
0.8
percentage points in one year, 
and by 
1.7
percentage points since the peak reached in 
2015. At 55.7% in the fourth quarter o
f 2017, 
the employment rate
has 
increased
by 
0.8
percentage point in one year.
However, the French recovery is 
not complete
. 
The unemployment rate is 1.6 percentag
e points 
above its lowest level
reached
before the crisis 
in early 2008 and 3.4 percentage points above 
the OECD average. The employment rate also 
remains well below the OECD average (61.7%).
Real hourly wages are growing at a slightly faster 
rate in Franc
e than the OECD average. 
Nevertheless, in a context of persistent 
unemployment, wage growth has remained 
limited since the end of 2012, fluctuating on 
average around 1% year
on
year.
DEVELOPMENTS IN JOB QUALITY AND 
LABOUR 
Collective bargaining is under pressure. Trade union 
membership in the OECD has 
halved since the 1980s. 
Yet, collective bargaining can bring many benefits, 
including lower inequality, higher wages and a better 
work environment. This is especially the case in 
systems that have some macroeconomic element of 
wage co
ordination, but are s
ufficiently 
decentralised so that wages and working conditions 
can respond to what occurs at the firm level.
France
OECD
B. Real hourly wage
Year
year percentage change, trended series
A. Unemployment rate
Percentage of the labour force
Projections
Contact
: Stéphane Carcillo
(+33 1 45 24 80 31; 
[email protected]
Alexandre Georgieff 
(+33 1 85 55 47 85; 
[email protected]
Directorate for Employment, Labour and Social Affairs.
OECD Employment Outlook publication page
OECD 
Employment Outlook 201
© 
OECD 201
, Ch. 1
he unionisation
rate is one of the lowest in 
France
: 11
%, compared to 17% on average in 
the OECD. 
In spite of
this, 98
% of employees are 
covered by 
collective
agreements (compared to 
1/3 in the OECD). This is 
due to
the 
quasi
automatic extension of branch 
agreements.
These extensions may have negative effects 
on 
the labour market if the heterogeneity of 
companies within sectors is not duly taken into 
account.
The new 
ordonnances
can change the 
situation
the extension of an agreement 
is 
now
subject to 
an evaluation
of its 
potential 
economic consequences; 
the agreements 
must 
include
provisions specific to small 
firms
UNEMPLOYMENT BENEFIT
: TOWARDS BETTER 
COVERAGE
Unemployment benefits are one of the principal 
instruments for linking jobless people to 
employment support programmes. But in most 
countries
, fewer than one in three jobseekers 
receive unemployment benefits. Policy initiatives 
during the early stages of the global financial crisis 
made benefits more accessible and extended 
coverage. But, overall, coverage has frequently 
continued the downward 
trend seen before the 
crisis.
In France, 42% of jobseekers receive 
unemployment benefits. This is significantly 
higher than the OECD average (29%) and close 
to the coverage observed in Denmark. This rate 
has not decreased since 2007. This is due to 
generou
s eligibility criteria and a relatively long 
benefit period, especially for 
older benefit 
recipients
. However, 
coverage remains limited 
due to the many
beneficiaries 
who 
work while 
remaining registered unemployed, the high 
share of young unemployed without
any 
entitlement 
to unemployment benefits 
and the 
incidence of long
term unemployment.
The current reform of 
the 
unemployment 
insurance 
system 
at extending
coverage by 
opening rights to self
employed workers and 
those who have resigned. This is welcome in a 
context where career paths are 
increasingly
less 
stable
and self
employment is 
rising
The current reform also aims 
at enhancing
employability 
by 
creating
a training market and 
enhanc
ing quality
Many vacancies are not filled 
due to t
he lack of the required
skills
. Yet
only 
36% of French people receive training, 
compared to more than 60% in the Nordic 
countries. Participation is even lower (17%) 
ong the low skilled.
Mexico: 4.6 USD
Denmark: 29.8 USD
OECD: 16.8 USD
France: 21.9 USD
Earnings quality  (↗)
Greece: 22.7%
Japan: 1.6%
OECD: 4.9%
France: 4.4%
Labour market insecurity  (
Greece: 47.9%
Norway: 13.8%
OECD: 27.5%
France: 25.8%
Job strain  (
Greece: 16%
Czech Rep.: 5.8%
OECD: 10.6%
France: 8.3%
Low
income rate (↘)
Quality
Korea: 61%
Finland: 21.4%
OECD: 38.5%
France: 34.6%
Turkey: 47.1%
Iceland: 9.2%
OECD: 24.9%
France: 27.8%
Gender labour income gap (↘)
Employment
gap for disadvantaged groups
(↘)
Inclusiveness
Bottom performer
Top performer