Executive Search in France – 2015 Outlook
France Struggles With Recession and Terrorists
Executive search in France this year must struggle with a lack of economic growth and productivity in 2014. With an index of -28.6, the French market has the most pessimistic score in the market, with 68% of operators believing that the level of demand and order books was insufficient in relation to the budget.
One third of French firms are banking on a recovery over the next six months, after 77% of firms recorded a decline in activity over the previous three months.
The expected growth in 2015 should be close to 0.8%, sluggish compared with other European countries. Probably the most important problem is the lack of investment. Especially in private companies, investment is expected to stay low: -2.2%.
Unemployment Over 10%
The consequences in the HR area will of course be negative. The unemployment rate will continue to increase to around 10.2% after sitting at 9.8% in 2014.
Lacking clarity in their long term vision, many companies prefer the current short term contracts and missions. These contracts permit some flexibility and an alternative to the lack of vision regarding the market’s long term development. This way, they can respond to some needs and increase activity at least short-term.
The economic growth is slowly coming back, although the recovery remains fragile. France is no longer the fifth world power. We occupy the 6th rank now and things will not get better after the last deadly attacks. Just as in the USA after September 11, 2001, the current situation will no doubt impact the French economy, making investment risky and difficult.