http://www.bbc.co.uk/news/business-25402881
The article I found is from December, but covers an important topic the book brings up. The book Countries and Concepts talks about how unemployment is a huge issue in France (as is the rest of the world). This is something to pay attention to as it effects the global economy and puts a lot of pressure on the French government.
The article tells that the latest purchasing managers' index from Markit, shows that France's figures are falling. The numbers are falling so much, that people are starting to worry that France may be back in recession. Sources say that part of the reason the numbers are so low is the high unemployment rate, which stands at 11%. Of course there are other countries that are worse of, but when compared to neighboring countries like Germany, France is not doing so well.
I think that the reason Frances Unemployment rate is so high is because of their rate of inflation. France has had an average inflation rate of over two percent and within the last ten years they have had a high of almost six percent. Because of this, goods and services are continually getting more expensive making it so local business are have to let go of employees to keep their doors open. I do not know if this is the only reason why their unemployment rate is so high, but I am sure it is making up a big part of it.
ReplyDeleteJust to put that inflation rate into perspective, the united Sates is at 1.1% currently and has averaged in the ones for the past few years. Showing why maybe our economy is in a better place at the moment.
If France really is back in recession, a larger issue comes into question: the stability of the Eurozone. While not an expert on the situation, it was my impression that Germany, first and foremost, and France were the countries holding the euro together. If France is as weak as the article would suggest then you have to wonder if Germany alone will be able to maintain the euro's strength. Maybe Britain was smart to opt out after all...
ReplyDeleteAnother larger issue with France is the culture itself. Famous, or infamous, for having long vacations and random days off, the French citizens don't seem to be hard workers or nearly as productive as other nations in the West. A question that has to be addressed for France and Europe as a whole is whether or not they are willing to sacrifice to remain top nations or even relavent on a global scale.