France's Unemployment Crisis: A Macroeconomic Policy Solution

This essay reflects on the macroeconomic challenges facing France, particularly the issue of high unemployment. It recommends a specific policy action: a comprehensive job training program coupled with reforms to unemployment benefits and vocational training. The rationale behind this recommendation is that it addresses the skills gap and provides incentives for the unemployed to actively seek work. The essay also suggests that the French government should increase its budget allocation for training and employment incentives. By focusing on long-term, personalized training structures and making long-term contracts more accessible for employers, France can reduce its unemployment rate and stimulate economic growth. The essay concludes by emphasizing the importance of proactively developing additional strategies to support this policy action and ensure its long-term success. Desklib offers a variety of study tools, including past papers and solved assignments, to help students understand complex economic issues.

Running Head: REFLECTION 0
MACROECONOMICS

REFLECTION 1
Macroeconomics supports in understanding the working of a multifaceted
contemporary economic system and in achieving the goal of economic growth. A well
knowledge of the macroeconomics of the nations helps in developing adequate economic
plans in coordination with global economic measures (Hanushek, 2013). It also helps in
solving economic problems proactively such as unemployment, inflation, trade cycle and
stagflation. In addition, these issues can be resolved at macro level only.
As the selected country is France, unemployment is identified as one of the major
macroeconomic problems in the country. There is a lack of progress and the unemployment is
high inclusive of weak government finances. As per the reports, around three million people
are unemployed representing 10.2% of the workforce. Based on data of second quarter of
2018, the rate of unemployment in France was 9.1 (tradingeconomics.com, 2019) and the
data of unemployment rate of France is shown below –
French Q1 Jobless Rate Falls to a Decade Low of 8.7%
Source: (tradingeconomics.com, 2019)
The France government is taking out various measures to solve these issues. For
instance, they are trying strong with their major policy move relating to giving flexibility to
labour laws as that makes it flexible to recruit and terminate employees, somewhat long
required by various France employers. Other than this, the government is also trying to
decrease number of short-term contract by talking with trade unions as it has been exploded
past 20 years thelocal.fr. (2019). However, such agendas not helping the country very well in
solving the employment issue. It is important for France to move with one effective policy
action to solve this macroeconomic problem at an earlier stage.

REFLECTION 2
The recommended policy action for reducing this macroeconomic issue of France is
job training. The government of France can make a five-year plan to raise sanction against
unemployed workers who do not seek for work by reforming unemployment benefit.
Government reforms of vocational training and apprenticeships will also be beneficial, as
many French organizations cannot discover adequate capable employee to meet their orders.
The government of France is also required to increase its budget as in 2013; they spent 0.87%
of its GDP on plans like training, employment incentives and unemployment welfares
(Ketchell, 2017). In addition, the government is required to focus on extended,
comprehensive and personalized training structure while supporting the interest of job
seekers. Considering this, the country can go for building long-term contracts less difficult
for employers, by capping the compensation that can be granted after a dismissal.
Hence, this policy action of job training will be set up at the center of aspiring reform
agenda to bring down country high unemployment rate and encourage growth in the
economy. After completion of five years, the country can also go with other reforms such as
lowering social security contributions, providing better education facilities, more investment
and expertise.
This policy action may be successful in solving the macroeconomic problem of
France but it is also important for the government that they proactively develop other agendas
too in light of this issue.

REFLECTION 3
References
Hanushek, E. A. (2013). Economic growth in developing countries: The role of human
capital. Economics of Education Review, 37(1), 204-212.
Ketchell, M. (2017). What Macron has in store for France’s generous unemployment support
system. Retrieved from https://theconversation.com/what-macron-has-in-store-for-
frances-generous-unemployment-support-system-82009
thelocal.fr. (2019). Unemployment in France falls to ten year low. Retrieved from
https://www.thelocal.fr/20190214/french-unemployment-rate-falls-to-ten-year-low
tradingeconomics.com. (2019). France Unemployment Rate. Retrieved from
https://tradingeconomics.com/france/unemployment-rate