France: The level of potential GDP and potential growth should not be confused

France is succeeding in creating numerous jobs for low-skilled workers and in driving down the low-skilled unemployment rate. It is important to note that this: Increases the level of France’s potential GDP, thanks to the rise in the employment rate; Reduces labour productivity growth, since the new jobs are low-productivity jobs in which productivity growth is also low. This reduces potential growth; Altogether, the level of potential GDP is higher and grows less fast, but what matters is that its level is higher, which is a good thing.