Le Monde | • Updated | By
- Despite the crisis, the dynamics of real wages can not be denied
End September 2013, the basic monthly salary rose by 1.6% year on year. Thus, one could deduce that initial analysis, as a result of the crisis, wages are under pressure. However, as inflation had been lower, the SMB had increased in real terms by 0.9%.
In other words, the two periods compared, wage dynamics was higher at the end September 2014 by 0.3 points to what it was at the end of September 2013.
In October, in its memo on the economy, INSEE, reasoning on wages means per capita, estimated that those -C in real terms (excluding inflation), expected to grow 1.2% this year after 0.9% in 2013.
The effect of wages is all the more striking that French economy continues to shed jobs. According to figures released this week by INSEE, employment in non-agricultural business sector decreased by 55,200 jobs in the third quarter
Read also:. France: production Industrial back, employment collapses
One of the explanations for the wage rigidity is mechanical. Part of the increase in wages is that job losses mainly affect employees with low skills and low pay, resulting in an increase of the average wage of those who kept their jobs.
French operation of the labor market – which gives preference to the employees working at the expense of hiring – and the reluctance of entrepreneurs to moderate wages also explain the persistent rise
In a published note. in April 2013, the Council of Economic Analysis (CAE) pointed the difficulties faced by the latter to influence their pay practices. “To preserve worker motivation and social climate, two key determinants of productivity, companies prefer to reduce employment than wages” , observes the EAC.
definition of the terms of the social minima with, for example indexing the minimum wage to inflation, are also among the factors explaining the wage dynamics at work.
- A bulwark against deflation and support growth
In a time of widespread weakness in the euro area, the fact that wages do not adjust downward may be seen as a shield against the threat that scares throughout Europe: deflation
The question is whether this rampart last long. prices declined in France in November compared to October (-0.2 %) .dropoff window A point is not a trend and would require that the decline in inflation is here to stay so that we truly speak of a scenario “Japanese” for France.
Read also: Prices are bunched together more than people think the French
At present, the French are not thinking to postpone their purchases because they would anticipate further declines price. They continue to consume. This is fortunate because their spending remains one of the few still on engines of the French economy
Read also:. The mild weather weighs on household consumption
From the point of view of the competitiveness of France, by contrast, it is undoubtedly a handicap in the race with countries such as Spain and Italy, who have committed more frankly lower costs work.
No comments:
Post a Comment