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Unemployment in France

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Ling Ann Ong

on 8 May 2014

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Transcript of Unemployment in France

frictional unemployment
structural unemployment
cyclical unemployment
seasonal unemployment
a strong Euro - makes it hard to export
inefficient and corrupt social security
excessive labour regulation - makes it difficult and expensive to fire someone, and it makes firms reluctant to hire
loss of income
loss of national output
fiscal costs (risk of taxes being increased)
social costs (crime rates increasing, etc.)
Government support
PARE (Programme for Assisting a Return to Employment)
every jobless person has to sign an agreement agreeing to undergo testing of his work skills, participating in any extra training and work in experience programmes offered by the state employment agency
after a year, the unemployed person must accept any form of job
Suggestions for dealing with unemployment
stop giving so many benefits to the unemployed; focus more on training the people currently doing the jobs - provides incentive for people to go back to work
change the part of the law dealing with firing an employee - many companies do not want to fire/employ new workers because they know that if they make a wrong decision, it will have an adverse effect on the company
Causes & Consequences of Unemployment
Unemployment in France
Definition: when a person who is actively searching for employment is unable to find work. The person must be within the legal working age, e.g. 18 to 60, and they must be willing and able to work.
Types of Unemployment
currently has 10.4% unemployment rate
Full transcript