France can least afford an increase in low-skilled labour costs

In France, the Citizens’ Convention for the Climate has proposed reducing working time for those on low wages by 20% without a loss of income; in other words, they have proposed a 20% increase in low-skilled labour costs. The low-skilled unemployment rate is abnormally high in France, even during peaks in the cycle when activity is at its strongest. Low-skilled unemployment is therefore primarily a supply-side problem: the cost of low-skilled labour is high relative to the value added produced by low-skilled workers. Whatever the economic policy objective (to increase low incomes, boost consumption, reduce inequalities, reduce working time), an increase in low-skilled labour costs must be rejected.