In May, the business climate in France remains stable but precarious, showing a slight improvement in services, offset by declines in trade and industry. Although activity is showing signs of rebound, economic uncertainty persists and the outlook for production in industry is deteriorating. Some observations, such as that of social inequalities, give us food for thought. Focus on the latest economic news.
Olympic Games 2024 companies demand a “full compensation system”
Companies located in the security zones of the 2024 Olympic Games sites are requesting a “full compensation system” to compensate for potential disruptions to their business. In this regard, the monitoring committee of the Olympic Games social charter has sent a letter to the relevant ministries, stressing the need to compensate companies and employees impacted by security measures related to the Games. They are requesting adaptation mechanisms to cope with changes in the organization of work and the taking of leave.
Companies whose activity will be significantly affected could claim compensation in the event of abnormal damage, such as a significant drop in their turnover. Seine boatmen are thus expressing their concerns about the cessation of their activity, as navigation on the Seine will cease for several days during the Games. They fear that their efforts will be forgotten and hope for adequate compensation for the losses suffered.
A guide to organizing work during the event
In anticipation of the Olympic Games, which will take place from July 26 to August 11, 2024, and the Paralympic Games, which will take place from August 28 to September 8, 2024, the Ministry of Labor has published a guide aimed at helping companies minimize the impact of the 2024 Olympic and Paralympic Games on their business.
This guide proposes several flexibility options that employers can consider. In particular, adapting working hours to peak travel times, such as working in staggered hours, doing the same with working hours taking into account the constraints related to companies participating in the Games, with possibilities such as maximum working hours, exemptions from daily, Sunday and weekly rest. Other solutions proposed: prioritizing the use of paid leave, rest days, and teleworking during this period.
End of aid for professionalization contracts
From May 1, 2024, the aid of up to €6,000 for employers recruiting work-study students is no longer applicable to professionalization contracts concluded since April 30, 2024, according to Decree No. 2024-392. However, contracts signed before this date remain eligible. The conditions for benefiting from this aid include the conclusion of the contract between January 1, 2023, and April 30, 2024, for an employee under 30 years of age, and the inclusion of certain professional qualifications or the “reverse VAE”.
This aid is only paid for the first year of the contract. To benefit from it, the contract must be an apprenticeship contract and the apprentice must be preparing a level 7 diploma or lower.
Increase in industrial job creation
According to the new tool launched by the Directorate General for Enterprises (DGE), the industry began to create jobs earlier and more intensively than INSEE data indicated. In 2022, only 108,000 additional jobs were created in industrial professions. The DGE at Bercy wants to have its instruments to measure the country’s industrial development.
After introducing an indicator at the end of March to measure “the net number of new industrial sites and significant extensions of industrial sites”, it is now launching two new tools. In particular, one to monitor industrial employment, the other to assess the number of factories in the territory.
Self-declaration for “very short-term” work stoppages under study
The government is considering allowing employees to self-declare short-term sick leave without consulting a doctor, in a bid to free up medical time and address a shortage of practitioners. The move, inspired by practices already in place in other countries such as the UK, is controversial. It would require regulatory mechanisms to prevent potential abuses, such as a “public order waiting period” where employees would not be compensated for one or two days.
Businesses and unions have expressed divergent opinions on this, with some concerned about possible abuses and the impact on the most vulnerable, while others see this measure as a way to reduce unnecessary medical consultations. Adjustments may be necessary to limit the financial impact on health insurance and employers, such as a waiting period.
Chain restoration is in full swing!
The French restaurant chain sector is experiencing record growth, surpassing €20 billion in revenue for the first time in 2023, according to a study by Food Service Vision. This performance represents almost double the figure for 2020, a year marked by the COVID-19 pandemic, and an increase of 8% compared to 2022. Fast food is the main driver of this growth, with a 30% increase in revenue between 2019 and 2023, while table service is growing by only 4%.
Among the most popular types of food, hamburgers dominate the market, followed by sandwiches, grills, fried chicken, and pizza. Some emerging segments, such as donuts and tacos, are experiencing significant growth, while others, such as grills and self-service, are struggling due to store closures.
Social origins are still influential
A study by Céreq reveals that social origins continue to influence access to employment and the career paths of young people in France. 55% of children of executive parents obtain a master’s degree, compared to 11% of children from working-class families. In addition, 84% of children of executives choose the general pathway after the 3rd year, compared to 41% of young people from working-class backgrounds. These initial inequalities have repercussions on professional integration, where young people from modest backgrounds have more difficulty obtaining stable employment.
78% of graduates with a Bac+5 qualification from families of executives become executives themselves, compared to 60% of children from working-class families. Thus, young people from families of executives earn an average of €2,400 net/month, compared to €2,100 for those from working-class families.