The employment rate should be the economic policy objective, not the unemployment rate

There is debate in the context of France’s presidential campaign about the possibility of getting France to full employment, which would correspond to an unemployment rate of 4 or 5% (compared with 7.4% today). In reality, however, the employment rate is the right economic policy objective, not the unemployment rate. This is because: A low unemployment rate can coincide with a declining employment rate if participation declines, like in the United States. Conversely, a high unemployment rate can coincide with a high employment rate, like in Sweden; It is a low employment rate that is associated with high income inequality (before redistribution), low tax revenues and therefore public finance problems. The objective must therefore concern the employment rate. In France, for example, it could be to raise the employment rate to Germany’s level.