Report
Patrick Artus

Why has Germany not created more jobs than France?

Despite France’s drawbacks (low labour force skills, high production costs for a low level of product sophistication, export market share losses, deindustrialisation, tax system that discourages employment), employment growth in France and Germany has been identical in the past 20 years. What accounts for this situation? When we look at gross domestic product and per capita productivity, we see th at they have increased in a similar manner in France and Germany; When we look at trends in employment by business sector, we see that while Germany has had faster employment growth in industry and business services, it is counterbalanced by faster growth in employment in services to households and construction in France; Is it possible that production and employment have been limited in Germany by the current situation of full employment caused by population ageing? This has not been seen before 2018; Does Germany have hidden drawbacks (weak domestic demand due to the savings glut, ageing of the labour force that makes it less productive)? Yes, they have curbed production, and therefore employment .
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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