Can France reform its labor market?

French unions and students demonstrate against new draft labor law
May 26, 2016: Thousands of French union members and students took to the streets of Lyon to demand that the government abandon its labor market reform (source: dpa)
  • France wants to let companies and employees negotiate work hours directly
  • Proposal would invert collective bargaining hierarchy that benefits big unions
  • Popular anger at the diluted reform package has strengthened radical unions and may force a government climb-down

France has 3.5 million jobless and a rocketing youth unemployment rate of 25 percent. It was time for the government to do something about it – especially as President Francois Hollande won election in 2012 by promising to “reverse the unemployment trend.” Institutionalized rigidities have created a two-track job market, with “insiders” enjoying a high degree of job security through long-term contracts, while “outsiders,” whose numbers are growing, subsist on precarious short-term contracts or have no jobs at all.

Not a subscriber yet?

Subscribe now and get the latest in-depth geopolitical analysis and forecasts from GIS’s unrivaled cadre of experts.

Learn more about our subscription plans.

You can also buy this report for €8.99 Buy

Add your comment