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“Historic” drop in second-quarter recruitments in France

2020-07-23T09:53:11.265Z


After several months of spectacular decline, hiring resumed in May and June. The results of the quarter remain worrying.


The coronavirus effect on the economy continues to be felt. In a report published on Wednesday, Acoss (Central Agency for Social Security Bodies) reports a “ historic drop ” in hiring of more than a month in recent weeks. Concretely, excluding temporary work, these hires collapsed by 40.1% in the second quarter of 2020, a more marked drop on permanent contracts of more than one month (-43.7%) than on fixed-term contracts (-36.6% ).

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Over one year, the drop is just as remarkable: declarations of hiring in the second quarter fell by 43.5%, of which 45.7% in CDI and 41.3% in CDD. These declines have accelerated, after an already weak first quarter which had seen the number of declarations fall by 6.5% (-8.1% in CDD and -5% in CDI).

They are mainly due to the month of April, which recorded spectacular drops in hiring, in full confinement. Conversely, the months of May and June saw a sharp rebound in hiring.

Change in the number of declarations of hiring for more than one month, excluding temporary staff (in%) Le Figaro with Acoss

In addition, the declines concern all company sizes, whether they are very small businesses (-36.1%) or companies with 20 or more employees (-42.8%). They increased, again, compared to the first quarter.

A significant decline everywhere in France

All sectors are also affected, whether it is construction (-27.1%), industry (-37.2%) or tertiary (-42.1%). In retail, refining and coking, metallurgy and electrical equipment manufacturing were among the areas registering the largest declines in the second quarter. The podium is occupied, unsurprisingly, by accommodation and food services, the manufacture of transport equipment and the arts, shows and other recreational activities. Conversely, the declines are more limited in the pharmaceutical industry, agriculture and activities for human health.

All regions of France are also affected. However, the western part of the country (Brittany, Pays de la Loire, Limousin, Poitou-Charentes, Normandy) recorded a more moderate decrease over one year, less than 40%. Conversely, Île-de-France (-50.6%), Corsica (-49.8%) and Alsace (-47%) feel the explosion in hiring hardest.

There is therefore good news behind the spectacular decline in the second quarter, with a rebound in hiring confirmed in May and June, particularly in industry and for permanent contract hires. However, these trends will have to continue in the coming months to offset the sharp declines recorded in recent times. For now, Bercy forecasts a "strong" contraction in employment this year, when Unédic expects the destruction of 900,000 salaried jobs by the end of the year, which would cause unemployment to jump to 11 %. The Banque de France, for its part, forecasts a rate of 11.7% in 2021, before a gradual decline to 10.4% the following year.

Source: lefigaro

All life articles on 2020-07-23

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