French companies are struggling to hire because of low wages

Nearly one in four companies is trying to hire in France right now, and sometimes in vain. Difficulties in hiring which have serious consequences.

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Companies in France that would like to hire right now are particularly in the industry sector: a third of this sector is currently in the recruitment phase. They are also in the construction and trade sectors, both above the national average. Only then, a large majority of companies that recruit – they are 22% to be in the hiring phase at the national level – do not succeed or encounter difficulties, as revealed by a study conducted by Opinionway for CCI France, La Tribune and LCI. 16% of all French managers admit that they cannot hire as many as they would like.

Difficulties which can have very serious consequences, because almost all of these companies in need of manpower recognize that these shortages of personnel have consequences which can be disastrous. The main problem concerns disruptions in logistics. Then come the rejection of new customers or the loss of existing customers. This is the case for nearly 20% of companies that cannot hire as many as they would like. Another possible consequence: the punctual cessation of certain activities and the overload of work for the rest of the staff. Finally, these shortages cause serious disturbances in the management of human resources in the companies concerned.

This situation should also last while more than three million people are registered with Pôle Emploi. According to the latest INSEE forecasts, the unemployment rate should remain at 7.4% by the end of the year. According to this survey, this shortage of candidates is explained by salaries deemed too low in the face of a rise in prices, which is soaring.

So the solution would be to raise wages? This is what a third of the managers questioned decided to do. Especially in larger companies. Less than ten employees, they are struggling to raise wages. In total, one in five companies is not considering a salary increase because their financial health does not allow them. To a large extent, the repayment of state-guaranteed loans poses a threat that may explain this reluctance.


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