2023-06-07 09:32:20
Margaux Fodéré / Photo credit: IGOR STEVANOVIC / SCIENCE PHOTO / IST / SCIENCE PHOTO LIBRARY VIA AFP
Presented to the Council of Ministers on Wednesday, the bill “for full employment” enacts the creation of France Travail, successor to Pôle emploi. The executive wants to achieve full employment, i.e. an unemployment rate of around 5% in 2027. But what exactly does the term “full employment” mean?
The government presents this Wednesday its bill “for full employment”, which should give birth to France Travail, successor to Pôle emploi. Objective: to achieve full employment by the end of Emmanuel Macron’s mandate. But what does “full employment” mean?
An ideal level of employment in an economy
Achieving full employment does not mean that there will be no more unemployed. The term refers to an ideal level of employment in an economy. It is achieved when a maximum of candidates and companies agree on the skills required, the remuneration, or the geographical area of the position.
An economy without unemployment is not desirable
In France, full employment is around 5% unemployment. It is very difficult to be below this percentage, since there are always employees leaving their posts, companies going bankrupt and therefore individuals without work.
If it may seem surprising, an economy without unemployment is not desirable and would even be dangerous. Because the fewer candidates there are, the more companies raise salaries to attract them. The consequence, an overheated economy, the increase in prices, therefore the return of inflation.
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