Macron’s Uphill Battle Against France’s Labor Law
Emmanuel Macron may have his work cut out for him. Photographer: Christophe Morin/Bloomberg
Are France’s strict labor regulations responsible for the country’s persistently high unemployment rate? Emmanuel Macron repeatedly said so during his successful presidential campaign, and he set to work on liberalizing French labor law almost as soon as he was sworn in on May 14. The last three presidents also tried to loosen labor regulations, and had to partially backtrack in the face of opposition. Will Macron succeed where others failed?
France’s unemployment rate is 9.6 percent -- about double the rates in Germany, the Netherlands, the U.S. and the U.K., though lower than in Spain or Italy. France’s labor code runs to 3,000 pages and covers everything from wage negotiations to standards for ventilating offices. Pierre Gattaz, the head of France’s main business lobby, has spoken of 1 million jobs being created if France reduces payroll taxes to make its companies more competitive and cuts job protections that Gattaz say make companies afraid to hire.