France

Employment Office turns to the private sector

Article published on the 2009-07-22 Latest update 2009-07-25 07:46 TU

Unemployment in France is expected to rise by up to one million in 2009
(Photo: Reuters)

France’s employment office, Pôle Emploi, said it will subcontract to the private sector in order to deal with the growing rate of jobless in the country.

Pôle Emploi announced the creation of 1,840 jobs in its own ranks, including 1,000 permanent positions, but said private firms would help with around 320,000 claimants up to the end of 2011.

Unemployment has risen in France by 340,000 since the start of 2009, increasing pressure on an office that has struggled to keep up with the government’s promise of one member of staff per 60 unemployed.

Today, the ratio is more likely to be one staff member to 95. Unions claim the situation is even worse with one per 150 unemployed.

These numbers are expected to rise during the next few months as school leavers enter the employment market.

Employment Minister Xavier Darcos has suggested that unemployment will rise by 800,000 during the course of the year. One of the main union bosses François Chérèque, secretary general of the CFDT, puts the figure at a million.

“In terms of new people registering as unemployed, we are expecting around 20 to 25 per cent more than in September 2008 which makes around 2.4 million visits to the agencies,” said Christian Charpy, the director general of Pôle Emploi.

The contracts, which will be shared by a number of firms, are believed to be worth in the region of 100 million euros in 2009.

Labour unions have criticised the announcement, saying that it will cost the state far more than if the work was kept in-house by recruiting more staff.

“The private companies are about three or four times more expensive,” said Eric Aubin, the CGT representative on the administrative board of the Employment Office.

“It is about 1,000 for every redeployment through the public sector. It will be between 3,000 and 5,000 for the private sector. It would be better for Pôle to employ than run to the private sector.”