Report
Patrick Artus

France: working less, more, better?

The discussion on labour and employment in France has led to three dramatically different approaches: Some suggest working less (without a loss of wage) to share work and create jobs. As hourly productivity gains are very low, a reduction in the working time could not be one of the ways to use productivity gains, and it would require new government aid, which is very difficult to imagine nowadays to avoid a loss of competitiveness for companies; Others suggest working more to gain more, which in France has now led to tax exemption on overtime. In a situation of high structural unemployment, it is dangerous when it is less costly for companies to let the current employees work more than to hire new employees. Working more to gain less would only translate into a fall in the hourly wage. The best solution is then probably neither to work less nor to work more, but to work better by lifting labour force skills, which should lead to a rise in the employment rate.
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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