Report
Patrick Artus

What accounts for the decline in labour productivity in France from end-2019 to end-2021?

In France, employment grew faster than GDP from the end of 2019 to the end of 2021. Productivity has therefore declined, which remains the case even when we take into account short-time working and working time. This is a rather surprising development, given: The corporate digitalisation effort; The presence of hiring difficulties; The rise of working from home, which, according to studies, increases productivity. It can be explained by the fact that the structure of employment has shifted towards jobs in unsophisticated services, where individual productivity is low. This development is consistent with the observation that the strong surge in French demand for relatively sophisticated goods after COVID has led to imports and to an external deficit and not to domestic production; and also with the decline in low-skilled unemployment.
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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