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France Pins Hopes on Youth Jobs Plan
Keywords:
France's unemployment rate for youth 15-24 is over 25%. France's president Hollande has a plan to get companies to hire young workers on a permanent contract. The "generation contract" gives small business 4000 euros a year for three years to hire a young person on a permanent contract a the same time committing to keep an employee over 57 years in age. Companies with over 300 employees are required to set targets for hiring younger workers and keeping older workers or face sanctions. The program would cost France $1 billion a year and the government estimate is to generate 500,000 jobs in 5 years. A think tank OFCE sees this as generating about 100,000 jobs, because many companies would have hired anyway. The German approach is focussed on state sponsored apprenticeships and vocational training, which some French companies says is the right direction for France. German youth unemployment is 8.1%, with 2.6 million students at vocational schools, and 1.46 million apprentices. Beginning Jan 2013, Germany will support youth from other eurozone countries with language courses and travel costs to work in these programs in areas of Germany with shortages of workers.
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The saying goes that "the French work to live and the Germans live to work." Alsace has been part of France and of Germany at different times in history. Here one sees the two systems in close proximity, the French more attuned to state control than the German model, with more regulations. Changes were made in Germany with labor reforms during an earlier period of high unemployment, while things have not changed as much in France. The German apprenticeship system works well there but a university degree is favored by French families. The efforts to make the French system work with high unemployment and the active debate in France for improvements.
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Lost generation. High joblesss rate for younger workers in Spain, Italy, France, and other parts of Europe: 2011-2014
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The unemployment rate for younger workers 16-24 in Spain has reached an astounding 42% in 2010, up from 17.5% at the height of the boom 3 years ago. High youth unemployment is a severe problem for the European Union.
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Youth unemployment in the UK reached 22.4% for ages 16-24 by January 2012.
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France Pins Hopes on Youth Jobs Plan
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"Kurzarbeit" and work sharing helped Germany deal with stubborn unemployment in the last decade and after the 2008 financial crisis. France is already looking at cooperation between industry, unions an government to reduce unemployment by adopting some of the actions taken in Germany.
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Wage flexibility by labor unions in France as part of an effort to improve competitiveness and reduce unemployment
10/28/2006
Sarkozy, Hollande and the unions are in agreement on adopting some aspects of what Germany did to reduce high unemployment in the last decade- adjusting wages and benefits in recessionary periods to avert layoffs. The German "kurzarbeit" program is more elaborate and France has to make more progress to adopt that type of arrangement, but the direction is clear and has popular support in France in 2012-2013.
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Wall Street Journal 05/29/2013
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A Proud Nation Ponders How to Halt Its Slow Decline
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Americanized Labor Policy Is Spreading in Europe
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Departing EADS Chief Urges Europe to Recommit to Industry
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Unemployment in Italy
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New York Times 12/10/2011
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Italy the economy: For ever espresso
Economist 06/11/2011
Policy response in Spain and France to increasing temporary workers and high youth unemployment- 2012-2013
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Linked Articles
France Pins Hopes on Youth Jobs Plan
Wall Street Journal 12/25/2012
Spain Approves Changes to Labor Policy
New York Times 02/10/2012
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