Hiring declarations leveled off in July

After the rebound, the status quo. According to the economic barometer published by Acoss on Friday, the number of declarations of hiring more than a month (excluding temporary) increased by 2.7% in July, after exploding by 83.2% in June and 78.5% in May.

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This phenomenon was due to the resumption of recruitments at the end of the confinement period. Over one year, this leading economic indicator remains largely in the red, by 7.1%, whereas it has been comfortably sailing in the green since the mid-2010s. The change recorded in July is mainly due to the increase. permanent hires (+ 8.6%) and not, contrary to what one might have thought for the start of the summer period, by the positive trend in fixed-term contracts of more than one month, which show a decrease of 2.2%. According to the score made by Acoss, declarations of recruitment on fixed-term contracts of more than one month decreased by 3.6% over one year, while those under permanent contracts fell by 10.6%.

As a result, the private sector payroll subject to social contributions fell by 15.9% in the second quarter of 2020, after falling by 2.8% in the first. This contraction results in particular from the massive use of partial activity, the compensation of which is not subject to contributions. At the end of June, the wage bill fell by 16.9% over one year.

In July, in the field of companies with 10 or more employees, the shutdown of the economy and the contribution deferral measures put in place by the public authorities still strongly impact the rate of unpaid contributions. However, the situation has improved since June. In July, the rate excluding automatic taxes measured at the end of the month is 4.30%, after 14.46% and 27.51% the previous months. The one at maturity + 30 days reached 15.32% (after 27.53%). The 90-day rate, which reflects the situation for the month of April 2020, is 25.68%.