Can you imagine an economic environment where it’s so expensive to layoff employees that business owners are forced to continue employing them? France is about to do exactly that.
You’ll want to read the entire thing, but here is the core of it (emphasis mine).
Polls regularly show unemployment ranking among the French’s top concerns, adding pressure on Hollande as his Socialist Party seeks a majority in parliament in a two-round legislative election on June 10 and 17.
The push to make firing more difficult in France, where making layoffs is already tightly regulated and often costly for employers, contrasts with moves under way in other euro zone countries such as Italy and Spain to make job cuts easier.
With the economy stalling, Labour Minister Michel Sapin said urgent measures were needed against unemployment and that he aimed to put forward legislation after the summer break.
“The main idea is to make layoffs so expensive for companies that it’s not worth it,” Sapin said in an interview with France Info radio.
“It’s not a question of sanctions, but workers have to have compensation at the right level,” he said.
Now I’m no rocket scientist. I’m no economist and my education level isn’t extraordinary. But wouldn’t this actually encourage businesses not to hire new employees to begin with?
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