France target jobless youths

France target jobless youths

The French government is to subsidise 100,000 new jobs for young people next year in the hope of reducing unemployment.

France’s unemployment rate is 10%, but 22.8% for those under 25. French employers are especially reluctant to hire young people because restrictive labour laws make it very hard for companies to lay off new employees.

Under the plan, unveiled at a cabinet meeting, companies that hire people between 16 and 25 for at least a year will only have to pay 25% of their salary.

The government estimates that the plan will cost €2.3bn in 2013. It plans to add another 50,000 contracts in 2014.

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