France: The fact that unemployment remains at a high level is due to a mix of demand problems and supply problems in the labour market

Unemployment remains high in France, but this high level of unemployment cannot be blamed only on demand problems or only on supply problems , as the two types of problems combine: Labour demand is weakened by the cyclical slowdown, mainly due to the rise in inflation that eliminates real wage growth; by the high level of low-skilled labour costs, which reduces demand for low-skilled labour; and for skilled jobs by the fall in the level of product sophistication in t he French economy; But employment is also reduced by labour supply problems that prevent job seekers from returning to employment: weak labour force skills, particularly among those with the lowest level of education; shortfall in the number of those with skill s in scientific subjects; a rejection of arduous jobs. All these factors explain the high level of recruitment difficulties. It must be admitted that it is possible to have weak demand for labour from companies, for low-skilled as for high-skilled workers , and many job vacancies for both low-skilled and high-skilled workers .