France has historically been an important producer of agricultural products.[160] Large tracts of fertile land, the application of modern technology, and EU subsidies have combined to make France the leading agricultural producer and exporter in Europe[161] (representing alone 20% of the EU's agricultural production[162]) and the world's third biggest exporter of agricultural products.[163]
Wheat, poultry, dairy, beef, and pork, as well as an internationally recognized processed foods are the primary French agricultural exports. Rosé wines are primarily consumed within the country, but champagne and Bordeaux wines are major exports, being known worldwide. EU agriculture subsidies to France have decreased for the last years, but still amounted to $8 billion in 2007.[164] This same year, France sold 33.4 billion euros of transformed agricultural products.[165]
Agriculture is thus an important sector of France's economy : 3.5% of the active population is employed in agriculture,[162] whereas the total agri-food industry made up 4.2% of French GDP in 2005.[162]
Labour market
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This section's factual accuracy may be compromised due to out-of-date information. Please update this article to reflect recent events or newly available information. (May 2013)
The French GDP per capita is similar to the GDP per capita of other comparable European countries such as Germany and the United Kingdom.[166] GDP per capita is determined by (i) productivity per hour worked, which in France is the highest of the G8 countries in 2005, according to the OECD,[167] (ii) the number of hours worked, which is one the lowest of developed countries,[168] and (iii) the employment rate. France has one of the lowest 15–64 years employment rates of the OECD countries: in 2004, only 69% of the French population aged 15–64 years were in employment, compared to 80% in Japan, 79% in the UK, 77% in the US, and 71% in Germany.[169]
France's public debt, from 1978 to 2009
This gap is due to the very low employment rates at both age extremes: the employment rate of people aged 55–64 was 38.3% in 2007, compared to 46.6% in the EU15;[170] for the 15–24 years old, the employment rate was 31.5% in 2007, compared to 37.2% in EU25.[171] These low employment rates are explained by the high minimum wages which prevent low productivity workers – such as young people – from easily entering the labour market,[172] ineffective university curricula that fail to prepare students adequately for the labour market,[173] and, concerning the older workers, restrictive legislation on work and incentives for premature retirement.[174][175] It has been argued that French laws that protect full-time workers have the effect of trapping highly educated youth into temporary and informal employment, because of the difficulty and expense of dealing with formal full-time employees.[176]
The unemployment rate decreased from 9% in 2006 to 7% in 2008 but remains one of the highest in Europe.[177][178] In June 2009, the unemployment rate for France was 9.4%.[179] Shorter working hours and the reluctance to reform the labour market are mentioned as weak spots of the French economy in the view of the right, when the left mentions the lack of government policies fostering social justice. Liberal economists have stressed repeatedly over the years that the main issue of the French economy is an issue of structural reforms, in order to increase the size of the working population in the overall population, reduce the taxes' level and the administrative burden.
Keynesian economists have different answers to the unemployment issue, and their theories led to the 35-hour workweek law in the 2000s (decade), which turned out to be a failure in reducing unemployment. Afterwards, between 2004 and 2008, the Government made some supply-oriented reforms to combat unemployment but met with fierce resistance,[180] especially with the contrat nouvelle embauche and the contrat première embauche which both were eventually repealed.[181] The current Government is experiencing the revenu de solidarité active to redress the negative effect of the revenu minimum d'insertion on work incentive.
Wheat, poultry, dairy, beef, and pork, as well as an internationally recognized processed foods are the primary French agricultural exports. Rosé wines are primarily consumed within the country, but champagne and Bordeaux wines are major exports, being known worldwide. EU agriculture subsidies to France have decreased for the last years, but still amounted to $8 billion in 2007.[164] This same year, France sold 33.4 billion euros of transformed agricultural products.[165]
Agriculture is thus an important sector of France's economy : 3.5% of the active population is employed in agriculture,[162] whereas the total agri-food industry made up 4.2% of French GDP in 2005.[162]
Labour market
Gnome globe current event.svg
This section's factual accuracy may be compromised due to out-of-date information. Please update this article to reflect recent events or newly available information. (May 2013)
The French GDP per capita is similar to the GDP per capita of other comparable European countries such as Germany and the United Kingdom.[166] GDP per capita is determined by (i) productivity per hour worked, which in France is the highest of the G8 countries in 2005, according to the OECD,[167] (ii) the number of hours worked, which is one the lowest of developed countries,[168] and (iii) the employment rate. France has one of the lowest 15–64 years employment rates of the OECD countries: in 2004, only 69% of the French population aged 15–64 years were in employment, compared to 80% in Japan, 79% in the UK, 77% in the US, and 71% in Germany.[169]
France's public debt, from 1978 to 2009
This gap is due to the very low employment rates at both age extremes: the employment rate of people aged 55–64 was 38.3% in 2007, compared to 46.6% in the EU15;[170] for the 15–24 years old, the employment rate was 31.5% in 2007, compared to 37.2% in EU25.[171] These low employment rates are explained by the high minimum wages which prevent low productivity workers – such as young people – from easily entering the labour market,[172] ineffective university curricula that fail to prepare students adequately for the labour market,[173] and, concerning the older workers, restrictive legislation on work and incentives for premature retirement.[174][175] It has been argued that French laws that protect full-time workers have the effect of trapping highly educated youth into temporary and informal employment, because of the difficulty and expense of dealing with formal full-time employees.[176]
The unemployment rate decreased from 9% in 2006 to 7% in 2008 but remains one of the highest in Europe.[177][178] In June 2009, the unemployment rate for France was 9.4%.[179] Shorter working hours and the reluctance to reform the labour market are mentioned as weak spots of the French economy in the view of the right, when the left mentions the lack of government policies fostering social justice. Liberal economists have stressed repeatedly over the years that the main issue of the French economy is an issue of structural reforms, in order to increase the size of the working population in the overall population, reduce the taxes' level and the administrative burden.
Keynesian economists have different answers to the unemployment issue, and their theories led to the 35-hour workweek law in the 2000s (decade), which turned out to be a failure in reducing unemployment. Afterwards, between 2004 and 2008, the Government made some supply-oriented reforms to combat unemployment but met with fierce resistance,[180] especially with the contrat nouvelle embauche and the contrat première embauche which both were eventually repealed.[181] The current Government is experiencing the revenu de solidarité active to redress the negative effect of the revenu minimum d'insertion on work incentive.
