Report
Patrick Artus

France: If unemployment returns to the structural unemployment level, in light of the budget commitments, what surplus will remain to be distributed?

The sharp increase in companies' recruitment difficulties in France could give grounds for thinking that unemployment is returning to the structural unemployment level, and therefore that growth will return to the level of potential growth and that the structural fiscal deficit is closer to the actual fiscal deficit than what is suggested by the customary measurement. In light of France's budget commitments, what then is the additional real per capita wage after taxes and government transfer payments which French wage-earners (workers) could enjoy at best by 2022? It is approximately 0.7% per year (i.e. 0.2% on a per capita basis) , which is likely to fuel the debate concerning weak purchasing power.
Provider
Natixis
Natixis

Based across the world’s leading financial centers, Natixis CIB Research offers an integrated view of the markets. The team provides support to inform Natixis clients’ investment and hedging decisions across all asset classes.

 

Analysts
Patrick Artus

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