FRANCE'S UNEMPLOYMENT RATE SET TO RISE?
Under sunny skies, life in Paris can seem pretty idyllic. Cafes are teeming with life. But the calm mood on display belies a more troubling truth.
Analysts are increasingly sounding an alarm about the impact slow growth amid a wider debt crisis may have on the job market in France.
Mathieu Plane is an economist with the French Economic Observatory.Economist at French Economic Observatroy (OFCE) Mathiue Plane:"The current context is bad, the economic situation has worsened in France but also in Europe. And in this context, there is not enough growth to create jobs. One has to know that in France we are able to create jobs roughly when we reach a one percent growth. Even with the most optimistic projections for 2012, we will not reach this rate."
Compared to Greece, Spain and Portugal, France has been relatively unaffected by the global slowdown, but political instability and uncertainty over the future of the single currency is beginning to change that.
Some economists now estimate some 30,000 jobs could be lost in the next few months.Airlines, banks and communication firms could all be hit - as they fall victim to rising competition, squeezed margins and weak demand.
Unions fear other sectors could be hit too.Leader of the Force Ouvriere Union Jean-Claude Mailly: "My friends in the supermarket sector fear that in big supermarkets chains, some 10 000 jobs could be cut in the coming weeks or months. There are also the car and nuclear industries which could be directly affected due to changes in consumption or relocation."
PSA Peugeot Citreon is said to be considering shutting one of its plants north of Paris but has so far denied it's planning to cut jobs.
The feared shutdowns would compound the economic woes facing new French President, Francois Hollonde.He's pledged to temper austerity in Europe and create 150,000 public sector jobs.
But with no defintive solution to the euro zone crisis in sight, some will surely question whether France can avoid shedding jobs.
(Hayley Platt/ Reuters)
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