EXCLUSIVE TO EUROPE 1 – Labor market: the real estate crisis could lead to an employment crisis

2023-10-12 04:18:25

Margaux Fodéré / Photo credits: GARDEL Bertrand / hemis.fr / hemis.fr / Hemis via AFP
modified to

08:51, October 12, 2023

What if the real estate crisis caused an employment crisis in its wake? Between the rise in rates and the saturation of the rental market, more and more French people are giving up a job in another region due to lack of housing. According to a study by the recruitment platform HelloWork that Europe 1 reveals exclusively, the real estate crisis might reduce job mobility.

“For owners, I don’t even check the first box”

A worrying situation for companies which are beginning to adapt their recruitment. 2.3 million offers were posted on the HelloWork platform in the third quarter. This is a weaker dynamic than at the start of the year and with the real estate crisis, some candidates, like Maxence, 22, are giving up due to a lack of available or accessible housing.

After a business degree in Marseille, he applied last summer for a sales position in tech in Paris. The interview goes well, the offer is for him. Except that a few days before the start of the school year, he still has not found a place to stay, despite a budget of 900 euros per month.

“I am not lucky enough to have a file with parents who have very regular income every month. My dad is an intermittent worker in the entertainment industry and my mother is self-employed, she is merchant. So it’s simple, for the owners, I don’t even check the first box. I had no accommodation, no one to welcome me,” the 22-year-old told Europe 1.

“I wanted to find a job in Paris”

Maxence tries to postpone the contract, the company refuses, so he must give up the position. “I wanted to find a job in Paris given that there are many more job offers, with more diversity, sectors and things that interested me. There is nothing more frustrating than refusing offers because we are held back by a banality: finding accommodation,” reported Maxence. Like the latter, more and more employees are having to draw a line on professional opportunities due to lack of housing.

Gradually, the real estate crisis is affecting the job market, explains David Beaurepaire, deputy director at HelloWork: “This freezing of the real estate market by rebound can have an impact on the job market because this less geographical mobility and therefore professional of the candidates will limit the number of positions which will open”. But in order not to abandon their project, some candidates are ready to make sacrifices.

After a few months with his father, Maxence found a job in Paris, finally opting for shared accommodation. Moreover, many young professionals, like him, now go through shared accommodation to find accommodation, helped by platforms like Wellow, Cooloc or Roomlala.

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