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You see from statistics (although their accuracy can be discussed) that low-regulation countries like Denmark and the UK have lower unemployment.

I am attracted to the "Danish model" and personally wish France would move in that direction.  However, as for the UK, I believe the reason for lower unemployment there than in France is two-fold:

  • a large increase in public, not private, sector jobs
  • although France has added more jobs than the UK over the last 10 odd years, France's active population has grown even faster than the UK's.

Denis Clerc elaborates these points as follows (afew's translation):

Hardly a day goes by without its elogy of the British employment model. Indeed, the British jobless rate of 4.6% (2nd quarter 2004) is enough to make the French dream. Ten years ago, in 1994, the two countries showed similar, poor performance: 12% for France, 9.7% for the UK. So France should be red-faced today.

Not so sure. Over the same ten years, the number of jobs in the UK increased by 11%. In France, by... 14%. That's because of a rise in the number of government employees, reply the free-marketers. Well, no, because the UK is clear ahead of France in this race: since 1997, 45% of newly-created jobs (861,000 out of a total of 1.92 million), are public-sector, while in France, the number of new non-private-sector jobs (including public sector plus ONGs, trade unions, religious bodies) increased by 300,000 during the same period. Doctors, teachers, policemen, nurses... These are the jobs that have been created on the other side of the Channel. <snip> Not surprising, since public services were particularly badly treated by the ultra-free-market governments of the '80s and '90s.

If job creation in France has been superior, how come the unemployment level remains stuck so high, while it keeps going down in Britain? Quite simply because of the increase in the active (working-age) population. The number of job-seekers rose by 12% in France over ten years, as against 6% in the UK. So France needs to create two jobs to Britain's one to bring the unemployment statistics down.



Truth unfolds in time through a communal process.
by marco on Sun May 6th, 2007 at 10:20:57 AM EST
[ Parent ]
a graphic illustrating the first point above that most job creation in the UK over the last ten years has been in the public sector:


(from French economy - fighting the FT version)

Truth unfolds in time through a communal process.

by marco on Sun May 6th, 2007 at 10:27:19 AM EST
[ Parent ]
Indeed not ideal, but somehow not surprising under Gordon Brown's tax and spend policy. I don't have the similar figures for Denmark. Sweden has managed to drastically cut down public sector spending and employment.

As I understand the Danish 'model', the principle is to attach the security to the person instead of the job, and to give the necessary attention to unemployment benefit and finding a new job. Since laying off is not a trouble area in Denmark, businesses don't hesitate hiring, so the jobless are not jobless that long. These are simplfied descriptions, and I do not have detailed information about the 'model'. The Danish job market is strongly unionised, and many things happen on concensus. Quite possibly, one cannot just copy that model to France, but parts may be usable adapted to France.

by skovgaard on Sun May 6th, 2007 at 12:48:35 PM EST
[ Parent ]

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