improved on the employment side, unchanged notes for France, is this the ideal time for the government and its reform?

More than 50,000 jobs were created in France in the private sector in the first quarter. The government highlights these results, slightly better than INSEE’s expectations, as it approaches its unemployment insurance reform and a conference on work.

A rebound in job creation was observed after a small recovery in activity at the start of 2024, with nearly 50,000 additional positions created in the private sector. These figures from INSEE illustrate the improvement in growth in this first quarter, which was also a surprise. GDP, that is to say the wealth created, increased by 0.2%. In detail, it is mainly in the tertiary sector, services and tourism, that these jobs have been created. But employment also increased slightly (+ 0.2%) in industry. On the other hand, there are fewer job creations in construction, a sector that is struggling at the moment, and in agriculture.

For the government, our economy is on the verge of rebound. He also highlights France’s financial rating which was not downgraded by Fitch and Moodys on April 26, and also welcomes the fact that France remains the most attractive country in Europe for foreign investments, according to the EY firm barometer. We are still waiting for future announcements, Monday May 13, from Choose France, this high mass which invites big foreign bosses to set up their factories in France.

The right time to tighten unemployment compensation rules?

It remains to be seen whether this improvement in employment will continue, because 50,000 job creations are good, but they are very small. As in recent months, employment was rather in decline, this small tremor can give cause for optimism.

In any case, the government is preparing to launch its unemployment insurance reform. He plans to present it next week, even if in broad terms we know it. The reform aims to tighten unemployment compensation rules by having to work longer to receive compensation. You should also expect an extended waiting period before you can receive an allowance. The specific system for senior job seekers also promises to be postponed, to align with the pension reform.

In addition, the government is also preparing a major conference on labor. The week from Monday May 13 to Sunday May 19 also, he wishes to address new working arrangements such as the four-day week, or the alternating work week for divorced parents. So many measures, presented as modern, positive, which should appear in a second act of the labor law that the government wants to present in the fall.