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[BUSINESS] · France · 2 sources

France leads Europe in unemployment‑related public spending, OECD highlights industrial decline

In 2023 France devoted 2.5 % of its gross domestic product to labour‑market policies for people facing difficulties, the highest share among European nations. The expense breaks down into 1.7 % of GDP for income‑support measures such as unemployment benefits and short‑time work, 0.5 % for active policies aimed at improving employability through training or work experience, and 0.2 % for public employment services (France Travail, local missions). By contrast, spending on employment support for disabled people is only 0.1 % of GDP.

An OECD report on the French economy notes that growth has remained modest at about 1.4 % since 2023, while public debt is projected to reach 115.5 % of GDP by 2025. Public expenditure rose to 57.2 % of GDP, 7.4 points above the euro‑area average. The industrial sector’s weight has fallen sharply: by the end of 2025 manufacturing accounts for just 11.2 % of national value added and 9.1 % of salaried jobs, a decline of roughly one‑third since the early 2000s and well below the OECD average of 15 % value added. Despite spending nearly 3 % of GDP on industrial policy—higher than comparable countries—the French industry continues to lose share, suggesting that public aid alone is insufficient to reverse the trend.