France To Increase Layoff Fines As Unemployment Hits 10 Percent
The jobless rate is the highest the country has faced in more than 12 years.
This is the highest rate since 1999, The Wall Street Journal reported, and is up from 9.3 percent in the final quarter of last year.
The government has tight regulations for French companies making layoffs, Reuters reported, and it is often costly for employers.
“The main idea is to make layoffs so expensive for companies that it’s not worth it,” Labour Minister Michel Sapin said during an interview with France Info radio. “It is not a question of sanctions, but workers have to have compensation at the right level.”
According to the Associated Press, high unemployment and sluggish economic growth were seen as important factors behind last month’s French presidential election. Socialist Francois Hollande was elected over conservative Nicolas Sarkozy, and promised to tackle the unemployment rate.
Reach Executive Producer Agnus Dei Farrant here.