France's Hollande offers subsidies to hire in jobs push

Jan 21, 2016 French President Francois Hollande recently announced a job-creation scheme worth two billion euros in a bid to fight the unemployment in the country.

Although the move has been seen by some as an attempt to improve his chances of re-election in 2017, president Hollande insist that the plan was not a politically driven initiative.

The scheme, which will include subsidies for firms that hire, is expected to tackle the rising unemployment rate which currently stands at 10.6 percent.

Speaking to this effect, President Hollande said:

“The measures that I just presented represent a significant budgetary effort, more than 2 billion euros. It concerns job training on the one hand and youth employment. These two billion euros will be financed without any new taxes of any kind. In other words, they will be financed by savings. Budget and finance ministers are in charge of it,”

Under the two-year plan, companies with fewer than 250 workers would get 2,000 euros for hiring youths and unemployed people on contracts lasting more than six months.

“Any firm with less than 250 workers, which hires youths or unemployed people, meaning an employee earning anything between the minimum wage or 1.3 times the minimum wage, on a long-term contract or on a contract lasting more than six months, will get a 2,000 euro ($2,180) state payout per year. Why 2,000 euros per month? Because it corresponds to the balance of employer contributions as written in the “Responsibility Pact” (aiming to ease company’s payrolls in exchange of them hiring),”

Hollande also said that more money would be funneled into public research.