Jeb B., 50, has just been fired for the second time since his arrival in France, back in 1990. Yet, this Franco-American economist still thinks French companies should have more freedom to lay off staff.
Jeb’s story is the fourth in our series dedicated to the surge in unemployment, after those of Alexander ('A job at all cost'), Michel Tudeng ('I’m in a hell of a mess') and Sophie D. ('Fired in ten minutes').
A US-born French citizen, Jeb B. has been working in France since 1990. He has just been fired.

As a trained economist, I’d say there are problems inherent to the French labour market.
Our model here in France relies on a simplistic and populist vision whereby the bosses are always evil and we are the poor, hapless employees. When we’re fired, we grumble and curse at the injustice of it all, as we French are expected to do. But there is no justice in the workplace. Companies aren’t there for that; they’re around to make money. One shouldn’t be fooled, we’re all capitalists the minute we open a bank account. Even Besancenot [the leader of France’s new Anti-Capitalist Party] is a capitalist!
Here, workers are overprotected and very difficult to lay off. But the same rules that were designed to protect workers are now having a negative effect on the labour market.
As the world changes all the time, so companies need to reinvent themselves. Whenever a factory shuts down we see many protests and debates. Of course, it’s sad for the people who lose their jobs, but a factory can’t go on functioning with the same old production methods for ever. In any case, globalisation has created far more jobs in France than it has destroyed, particularly since France is such a huge exporter.
Compared to their US counterparts, French workers also suffer from a lack of mobility. This in turn affects investments, as companies are loath to hire workers they won’t then be able to shake off.
This is why I think the crisis will last longer here than in the US. Since it began across the Atlantic in September, the unemployment rate there has almost doubled, from 5% to 9%. But I think the effects of the Obama plan will start kicking in soon, whereas France will feel the slump for much longer. I’d say the jobless rate here could jump to as high as 15-16%.
Because they can shed their workers more easily, US firms also hire more freely, which is why the number of unemployed remains lower. On the other hand, statistics show that having more holidays means French workers tend to be more productive than their holiday-starved US counterparts.
However, it would be wrong to think that there is no such thing as unemployment benefits in the US. It’s just that the system is different. Whether you used to earn 200,000 euros a year or a minimum wage, you get the same allowance. The idea is to guarantee a minimum standard of living for the household, while encouraging people to find a new job fast. Here, earnings-based benefits are designed to help unemployed people hold on to the same lifestyle. As a result, you’ll never see a qualified worker applying for a waiter’s job – something that’s quite possible in the US!
Of course, no country is perfect, and all should be open to testing new solutions. I’m not suggesting that the American system is necessarily the best. I’m all for the protection of workers when it comes to health care and a system that helps the jobless find suitable employment.
At the end of the day, I came to France because I wanted to live here and because I believed in an ideal of social security. And I still do today. "
Comments
France has been uncompetitive for some time
Submitted by jobs-quality.com (not verified) on Sun, 05/04/2009 - 16:00.France has helped exacerbate the unemployment rates due to their employee-friendly policies which made them uncompetitive. 35 hour working weeks is one great example. Companies need to be lean and competitive. They are not in existance to employ people, but to make a profit.
reply
Submitted by Unregistered user (not verified) on Fri, 13/03/2009 - 21:57.Mr. Jeb B. has to try the American way and I can guarantee that he would never utter those words again. The American worker has no rights other than walk away, has no benefits, and god forbid you loose your job, you will loose your home, and everything you worked so hard for.
You see Americans suffer from delusions of grandeur. They all vote as if they all own a factory.
please read the article before posting a lame comment
Submitted by Jeb B. on Sat, 14/03/2009 - 19:27.... if you had read the article, you would have seen that I am originally American. I have "tried" the American way, and that experience is reflected in my opinions and the article above.
In fact, my argument for more flexibility in the French labor market is based on the clear differential between the unemployment figures in each country, and the day to day benefits to the employee of a system in which the employer knows that the employee has other options if he decides to leave. I have found that in France, once hired, the employee is much more subservient, more differential to his bosses here, because he has fewer opportunity to replace that job with a possibly better one. This is the big secret in France... that "worker protection", limiting the right to fire, has an adverse effect on both the rate of hires and the status of the employee. An employer who has a reasonable fear that someone on his team could leave for a better situation will rend to treat his workers better in order to keep them from leaving.
Your "delusions of grandeur" comment says more about your mis-perception of your own lack of worth than any real understanding of workers in America. Good luck with that.
Unemployment - France & US
Submitted by mindubump (not verified) on Wed, 11/03/2009 - 07:19.Jeb B is correct. In the US, where unemployment benefits are basically subsistence level payments woefully backlogged due to the sudden surge in unemployed Americans, yoou will find well-educated and successful people waiting on tables. As a PhD I am now an Office Assistant until I can find another job. The huge cut in pay has ben disastrous to the household budget and ego. Plus how do you put this kiind of job on your c.v.? Jeb makes many other good points.
I don´t get it. I hear this
Submitted by Unregistered user (not verified) on Sun, 15/03/2009 - 03:36.I don´t get it. I hear this theory all the time but it never makes sense. Ok so it is hard to fire people in France, Jeb was fired and that is sad of course, but maybe because it is hard to fire people in France, less people in his company, co-workers, got fired. Of course I agree we should not tend to look at firms as evil and the workers the innocent victims, it´s just so naive and stupid outlook on the issue, but yes sometimes politicians pander to such populism before election.
Concerning businesses in France being afraid of hiring new workers because they don´t want to be stuck with them, I am highly sceptical about this. Businesses just never seem to see troubles coming, the crisis for companies always comes from the blue sky it seems. So when hiring workers the last thing the boss is thinking about is when he will need to fire him, I think bosses are vastly over optimistic and all hiring comes with the thought that this is the first step in the expansion. I´m from Iceland by the way, and this kind of thinking is frightfully installed in us and it went a bit far last time. =)
The biggest mistake when discussing these things is comparing to USA. USA has the dollar, the worlds number 1 currency, they have endless foreign investment which of course creates tons of jobs. The Euro could emerge now to match the dollar and then you will see things changing very much for the better in unemployment in Eurozone.
Icelanders have been having 0,5%-2% unemployment in recent years still with truck loads of foreign workers coming to work here and always the unemployment was so low, the main reason was a world ocean of foreign investment. Now the foreign investment stopped, and we have like 8% unemployment. The exact same thing happened in Ireland, plenty of foreign investment along with plenty of funding from EU took down unemployment and skyrocketed the GDP.
Protecting workers right only helps employment in my opinion.
Concerning businesses
Submitted by Unregistered user (not verified) on Sat, 04/04/2009 - 07:55.Concerning businesses in France being afraid of hiring new workers because they don´t want to be stuck with them, I am highly sceptical about this. Businesses just never seem to see troubles coming, the crisis for companies always comes from the blue sky it seems. So when hiring workers the last thing the boss is thinking about is when Buy Term Paper he will need to fire him, I think bosses are vastly over optimistic and all hiring comes Buy Dissertation with the thought that this is the first step in the expansion. I´m from Iceland by the way,Buy Research Paper and this kind of thinking is frightfully installed in us and it went a bit far last time. =)
thank you
Submitted by Jeb B. on Sat, 14/03/2009 - 19:34.no system is ideal, and my argument is that both the French and the Americans could benefit from looking at techniques from outside their home country.
Good luck with your own job search! I hope you will find something interesting & rewarding soon. Please do try to separate your own feelings of worth (your "ego") from your pay package. One of the good things about France is that we are less defined by our job titles and our salaries here. Wait tables for now, get by, but you are the same person to your friends an family that you were before... PhD or not. Scale back your expenses, adjust your lifestyle, but not your confidence in yourself. Again, good luck.
It is simplistic for Jeb B.
Submitted by Unregistered user (not verified) on Sat, 14/03/2009 - 23:00.It is simplistic for Jeb B. to say "we are all capitalists". As a trained economist, one would hope he understands the economic issues on a deeper level than ignorant folks who just repeat slogans and media spin.
We are truly in the age of "doublespeak" when the world's largest so-called "Capitalists" turn "Socialist" overnight and ask for TRILLIONS in public money to survive, YET STILL WANT TO BE CALLED CAPITALIST.
The trouble with most larger corporations today in ANY country is not that they are Capitalist, but rather that they are HYPOCRITES who want to have the best of both the Capitalist and Socialist systems.
The resentment many workers feel towards corporations is that too many corporations point to the need for "free market capitalism" when that argument suits them..... meanwhile, they are more Socialist than most working people, since they are the first to buy political favors, the first to get tax breaks, bailouts, etc.
Even during growth periods, American corporations get all sorts of tax breaks and grants. A favorite game that's being played is holding jobs "hostage", since they know most Americans are so broke they'd sell their soul for a job. So the Corporation goes to the City or the State and threatens to locate the facility ELSEWHERE unless they get their desired tax breaks. Politicians usually cave in, because they don't want to be perceived as being against "job-creation".
But, is that "free market capitalism" or a sad distortion? Shouldn't a company make "location" decisions based on REAL business needs rather than who will bribe them the most? Where will that stop? And who ends up making the difference for the TENS OF BILLIONS in lost tax revenue each year? Yes, We, the working class, the ones who resent this "gangster capitalism" and recognize that it's not "free market" capitalism at all!
In the above scenario, the PUBLIC picks up the TAX TAB for the Corporation, EVEN THOUGH IT'S THE CORPORATION who uses the roads, water & energy supplies, etc., and pollutes the air, water and soil, causing additional expenditures from the PUBLIC sector that would not have been necessary.
Then Mr. B. wants to throw in our face that the purpose of a business is not to create jobs but to make profit. FINE, BUT....
IF YOU TRULY WANT TO BE FREE MARKET CAPITALIST, PAY YOUR OWN WAY! You can't just be Capitalist when it suits you.
LET'S BE HONEST AND LOOK AT FACTS INSTEAD OF "SPIN". CAPITALISM AS WE PRACTICE IT DOESN'T WORK AND IS NOT SUSTAINABLE. THE PROOF IS IN THE HUGE AND UNSUSTAINABLE GAP BETWEEN the WORLD'S HAVES AND HAVE-NOTS.... AND FURTHER PROOF IS IN THE FACT THAT CAPITALISM IS BEING "BAILED OUT" IN FRONT OF OUR EYES!
We made fun of the Soviet Union and concluded that their system was not sustainable. That may be, BUT AT LEAST they were not foolish enough to DECEIVE themselves, as we are doing, by propping up a "False System" with excuses and spin. We are just encouraging more reckless greed.
It's no wonder the Chinese and others don't want to adopt our system. Theirs may not be perfect, but Whom are WE kidding?