Unemployment at 7%: Macron’s Bet is Moving Further

The unemployment rate continued to decline in the second quarter to reach 7.1%. This deception of the eye, as INSEE explains, should not obscure the rapid and brutal deterioration of the labor market.

The presidential promise of lower unemployment is seriously complicated. During his presidential campaign, the candidate of En Marche had explained that unemployment should fall below the symbolic bar of 7%. More than three years after this announcement, the economic situation has seriously deteriorated. The shock wave caused by the global pandemic continues to shake the French economy. If the latest figures from INSEE published this Thursday, August 13 indicate a trompe l’oeil drop in unemployment during confinement, other indicators (underemployment, halo, employment rate) reveal the colossal damage of this infectious disease in the labor market.

The presidential promise of lower unemployment is seriously complicated. During his presidential campaign, the candidate of En Marche explained that unemployment should fall below the symbolic mark of 7%. More than three years after this announcement, the economic situation has seriously deteriorated. The shock wave caused by the global pandemic continues to shake the French economy. If the latest figures from INSEE published this Thursday, August 13 indicate a trompe l’oeil drop in unemployment during confinement, other indicators (underemployment, halo, employment rate) reveal the colossal damage of this infectious disease in the labor market.

Airbus, Renault, Air France … since the spring, the list of layoffs and restructuring plans has continued to grow on French territory. While partial unemployment and loans guaranteed by the State (PGE) made it possible to initially limit the economic and social damage, deconfinement measures and the reduced support for partial unemployment by the State and Unedic have plunged many companies into torpor. According to a recent count by the statistical research directorate of the Ministry of Labor (Dares), more than 275 job protection plans were registered by the administration between March 1 and July 19.

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Unemployment at 7%: Macron's Bet is Moving Further - /10

Summary

The unemployment rate continued to decline in the second quarter to reach 7.1%. This deception of the eye, as INSEE explains, should not obscure the rapid and brutal deterioration of the labor market.

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