Catherwood LibraryILR School

French President Emmanuel Macron's cabinet has recently requested permission to be given the power to change France's labor law by decree, effectively sidestepping parliament. Like the last three presidents before him, Macron has worked to loosen labor regulations since the day he was sworn in. It is unclear if he will realize success where they failed in liberalizing France’s strict labor laws, which he has repeatedly cited as the reason for France’s high unemployment rates. The unemployment rate in France is twice as high as the rates in the U.S., the U.K., and Germany, and the labor code is about 3,000 pages long. Although pro-business lobbyists have argued that reducing payroll taxes will create 1 million jobs by making companies more competitive, French unions have argued in turn that making it easier to fire workers will not create jobs. Pro-labor advocates generally believe that unemployment results from the austere budget policies enforced by the EU, while economists have stated that very minor reforms could improve the employment situation in France.