Monday, November 28, 2016

Unemployment is expected to continue its slow decrease in France, according to the OECD – Europe1

The unemployment rate is expected to continue its slow decrease, reaching in 2018 to 9.3% in france and 9.6% in France, according to the latest OECD economic outlook published Monday. The indicator amounted in the third quarter to 9.7% in metropolitan france (10% in France), according to Insee. The Organization for economic cooperation and development (OECD) predicts that the rate ended the year at 9.6 per cent (9.9 per cent), before declining to 9.4% (9.7%) in 2017, and then to 9.3 per cent (9.6 per cent) in 2018.

Uncertainty of the presidential election. This “gradual decrease” is a result of the “modest recovery growth, combined with continued reductions of taxes and new recruitment premiums”, according to the OECD, which emphasises, however, “considerable uncertainty” posed by the presidential election in 2017.

New reductions of expenses needed. “tax cuts and social security contributions” have already “reduced the cost of labour and improved the business climate,” according to the international organization, but “new reductions” are necessary to “stimulate the economy and reduce unemployment more quickly”. France maintains a “heavy tax burden, which adversely affects employment, and investment,” she insists.

Revise the unemployment insurance. The OECD also recommends “to align the unemployment insurance scheme for senior citizens on the of young workers”, while the unemployed over 50 years of age can now be compensated for a maximum duration of 36 months compared with 24 months for the other. Such a measure “would exempt from the margin to better support children and young adults, who are too often affected by high unemployment and poverty.”


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