Employment is holding firm in the face of the looming crisis. Despite sluggish growth (+0.2%), the French economy created 89,400 additional jobs in the private sector in the third quarter, an increase of 0.4%, twice as strong as activity, according to the provisional figure published by INSEE, Tuesday 8 November. A rhythm which, moreover, does not weaken compared to the first half of the year. Indeed, 93,000 jobs were created in the first quarter (+0.5%) and 88,200 in the second (+0.4%). Over the same period, the gross domestic product fell back very slightly in the first quarter (–0.2%) and rose by 0.5% in the second.
“The slowdown in employment is much less important than the slowdown in activity”, summarizes Vladimir Passeron, head of the employment and earned income department at INSEE. Companies that are recruiting, a dynamic job market: this is what “short-term positive”, adds the expert. In the longer term, however, the situation is less encouraging: it reflects a loss of productivity compared to the pre-crisis (end of 2019) “ two points “, according to calculations by INSEE.
Why does the French economy need more jobs to produce the same thing as before the Covid-19 pandemic? Apprenticeship, which accounts for a third of job creations in 2022, is one avenue. According to INSEE, “ he explains about half of this drop in productivity. “Apprentices, in fact, are by definition beginners, and above all they work part-time for the company, while they are counted as full-time employees in the employment figures”, emphasizes Mr. Passeron.
Companies continue to hire
Among the other avenues explored is absenteeism, which remains high in certain sectors. Another hypothesis, “job laundering”: the health crisis and the establishment of partial unemployment could have led to the declaration of hidden employees, for health reasons as well as administrative and financial ones. INSEE is also wondering about other long-term explanations, such as the impact of “work orders”.
Either way, one thing is certain: companies are continuing to hire. ” We have yet to see a market slowdown, despite the deteriorating economic environment and international tensions”confirms David Beaurepaire, boss of the HelloWork recruitment platform, which still had 620,000 online offers in September, with even an absolute record of 326,000 permanent contracts.
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