Randy McDonald (rfmcdpei) wrote,
Randy McDonald
rfmcdpei

[LINK] Is France an economic dynamo?

Jerome a Paris's recent post at the European Tribune, "Rebuilding confidence in our economy," suggests the French economy is wrongly criticized as underperforming, as (for instance) being unable to create jobs quickly.

Hardly a day goes by without its elogy of the British employment model. Indeed, the British jobless rate of 4.6% (2nd quarter 2004) is enough to make the French dream. Ten years ago, in 1994, the two countries showed similar, poor performance: 12% for France, 9.7% for the UK. So France should be red-faced today.

Not so sure. Over the same ten years, the number of jobs in the UK increased by 11%. In France, by... 14%. That's because of a rise in the number of government employees, reply the free-marketers. Well, no, because the UK is clear ahead of France in this race: since 1997, 45% of newly-created jobs (861,000 out of a total of 1.92 million), are public-sector, while in France, the number of new non-private-sector jobs (including public sector plus ONGs, trade unions, religious bodies) increased by 300,000 during the same period. Doctors, teachers, policemen, nurses... These are the jobs that have been created on the other side of the Channel. Not surprising, since public services were particularly badly treated by the ultra-free-market governments of the '80s and '90s.

If job creation in France has been superior, how come the unemployment level remains stuck so high, while it keeps going down in Britain? Quite simply because of the increase in the active (working-age) population. The number of job-seekers rose by 12% in France over ten years, as against 6% in the UK. So France needs to create two jobs to Britain's one to bring the unemployment statistics down.


If the author's correct, it isn't French economic policies which are responsible for high unemployment in France so much as it is France's high rate of population growth. Is he correct? I turn to my readers.
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