Determining labour shortages and the need for labour migration

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Determining labour shortages and the need for labour migration
EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

Co-funded by the European Union

                                   First Focussed Study 2015

           Determining labour shortages and the need
                     for labour migration

             French Contact Point for the European Migration Network
                                             May 2015

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Determining labour shortages and the need for labour migration
EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

                  PRESENTATION OF THE FRENCH CONTACT POINT

French Contact Point:

In France, the National Contact Point (NCP) for the European Migration Network (EMN) is attached to the
Directorate-General for Foreign Nationals in France of the Ministry of the Interior.

   • Contacts

   - Marie-Hélène AMIEL: marie-helene.amiel@interieur.gouv.fr
Head of Department for Statistics, Studies and Documentation

   - Raymond PRATS: raymond.prats@interieur.gouv.fr
Deputy Head of Department

   - Ophélie TARDIEU: ophelie.tardieu@interieur.gouv.fr
Coordinator of the French National Contact Point

    - Christelle CAPORALI-PETIT : christelle.caporali-petit@interieur.gouv.fr
Policy officer within the European Migration Network

    - Anne-Cécile JARASSE: anne-cecile.jarasse@interieur.gouv.fr
Policy officer within the European Migration Network

   • Address
Point de contact national du Réseau européen des migrations
Département des statistiques, des études et de la documentation
Direction générale des étrangers en France
Ministère de l’Intérieur
Place Beauvau
75800 Paris Cedex 08

   • Internet sites
- Official EMN website (in English): http://emn.europa.eu
- French National Contact Point of EMN website:
http://www.immigration.interieur.gouv.fr/Europe-International/Le-reseau-europeen-des-migrations-
REM

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

              DETERMINING LABOUR SHORTAGES AND THE NEED
                        FOR LABOUR MIGRATION

                          Study conducted by the French Contact Point
                           for the European Migration Network (EMN)

                                              May 2015

Disclaimer:

The French Contact point for the EMN has provided information that is, to the best of its knowledge,
up-to-date and objective, within the context and scope of this study. However, the information may not
be exhaustive and representative of the entirety of the official policy in France. The French Contact
point for the EMN shall not be held liable, under any circumstances, for the use made of the information
contained in this study.

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

                                         Acronyms
ANAEM: French National Agency for the Reception of Foreigners and Migrants, (Agence
Nationale de l’Accueil des Étrangers et des Migrants) which became the French Office for
Immigration and Integration (OFII) in 2009
ANPE: French National Employment Agency (Agence Nationale pour l’Emploi), which
merged with the Assedic network in 2008 to become Pôle Emploi
APEC: Association for Professional Recruitment (Association Pour les Emplois des Cadres)
CAS: Strategic Analysis Council (Conseil d’Analyse Stratégique) which in 2013 became the
General Commission for Strategy and Economic Foresight (Commissariat Général à la
Stratégie et la Prospective), more commonly known as France Stratégie
CESEDA: Code on Entry and Residence of Foreigners and Right of Asylum (Code de l’entrée
et de séjour des étrangers et droit d’asile)
COE: French Employment Counselling and Advisory Board (Conseil d’Orientation pour
l’Emploi), an expert discussion body on all employment-related issues, under the auspices of
the Prime Minister
CREDOC: Research Centre for the Study and Observation of Living Conditions (Centre de
Recherche pour l’Étude et l’Observation des Conditions de Vie)
DARES: Directorate for Research and Statistics (Direction de l’Animation de la Recherche, des
Études et des Statistiques)
DGEF: General Directorate for Foreigners in France (Direction Générale des Étrangers en
France) under the auspices of the Ministry of the Interior
DGEFP: General Directorate for Employment and Vocational Training (Direction Générale à
l’Emploi et à la Formation Professionnelle) within the Ministry for Labour, Employment,
Vocational Training and Social Dialogue.
DGT: General Directorate for Labour (Direction Générale du Travail) within the Ministry for
Labour, Employment, Vocational Training and Social Dialogue.
DIRECCTE: Regional Directorate for Business, Competition, Consumer Affairs, Labour and
Employment (Direction Régionale des Entreprises, de la Concurrence, de la Consommation,
du Travail et de l’Emploi) a decentralised department under the joint responsibility of the
Ministry for Labour, Employment, Vocational Training and Social Dialogue and the Ministry
for the Economy, Finance and Industry.
DRTEFP: Regional Directorate for Labour, Employment and Vocational Training (Direction
Régionale du Travail, de l’Emploi et de la Formation Professionnelle), a decentralised
department under the Ministry for Employment.
FAP: Professional groups (Familles professionnelles)

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

ISCO: International Standard Classification of Occupations
INSEE: National Institute for Statistics and Economic Research (Institut National de la
Statistique et des Études Économiques)
MAE: Ministry for Foreign Affairs, which became the Ministry for Foreign Affairs and
International Development (MAEDI) in 2014
ROME: Operational Directory of Professions and Occupations (Répértoire Opérationnel des
Métiers et des Emplois)

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

                                                       TABLE OF CONTENTS

EXECUTIVE SUMMARY ......................................................................................................................8
SECTION 1: GENERAL OVERVIEW OF THE NATIONAL LABOUR MIGRATION POLICY
AND RECENT PUBLIC AND POLICY DEBATES ON LABOUR MIGRATION IN
FRANCE .............................................................................................................................................. 10
   Q1. Description of the national labour migration policy functions in France. .................................. 10
       Q1.a. Are conditions for entry and stay for (categories of) third country nationals provided in
       national legislation linked to shortage occupations? ..................................................................... 10
       Q1.b. Instruments in place in France for managing economic migration (quotas, labour market
       tests, points-based systems, other instruments) and their links to labour shortages identified...... 11
       Q1.c. To what extent does France view immigration as a tool to address labour shortages? What
       overall role for migration to address labour shortages is envisaged by policy in France? ............ 12
   Q2. Description of recent public and policy debates in the area of labour migration, especially with
   regard to debates on how labour migration is planned to be utilised to address labour market
   shortages. ........................................................................................................................................... 15
SECTION 2: OVERVIEW OF INSTRUMENTS USED FOR IDENTIFYING CURRENT AND
FUTURE LABOUR AND SKILLS SHORTAGES AND FOR ANTICIPATING THE NEED FOR
LABOUR MIGRATION .................................................................................................................... 17
   Q3. Definition and classification of labour shortages ....................................................................... 17
       Q3.a. How are labour shortages defined, identified and classified in France? .............................. 17
       Q3.b. The level of analysis (e.g. by sectors, by occupations or by qualifications or skill levels) . 21
       Q3.c. Classifications of shortages in legislation or soft law.......................................................... 21
       Q3.d. To what extent the level of analysis includes region/local level?........................................ 22
   Q4. Has France established any distinctions between different types of labour shortages, such as
   short-term and longer-term shortages, cyclical shortages and structural shortages?......................... 22
   Q5. Instruments/tools used in France to identify labour shortages and the need for migration
   labour................................................................................................................................................. 23
   Q6. Concerning lists of shortage occupations, description of: .......................................................... 29
       Q6.a. The process for developing shortage occupation lists ......................................................... 29
       Q6.b. The criteria for selecting the shortage occupations ............................................................. 30
       Q6.c. Organisations/institutions playing a role in determining lists of shortage occupations ....... 31
       Q6.d. The update of the lists of shortage occupations ................................................................... 31
   Q7. The use for policy purposes of the instruments and tools used for identifying labour market
   shortages (Is there a formalised mechanism to disseminate the information produced?) ................. 32
   Q8. Use of tools/mechanisms for identifying labour market shortages to determine policy
   instruments for managing economic migration ................................................................................. 32
   Q9. Existence of mechanisms or tools to monitor intra-EU mobility of workers filling job vacancies
   in the national labour market or leaving to work in other Member States ........................................ 33

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

   Q10. The role of social partners and other stakeholders in identifying the need for migrant labour.
   mechanism to consult/involve social partners in identifying the anticipated need for migrant
   labour................................................................................................................................................. 34
   Q11. Summary of the results/findings of instruments used in France (see Q.5) to identify labour
   shortages and the need for migrant workers. ..................................................................................... 34
   Q12. The challenges and risks of labour migration ........................................................................... 38
       Q12.a. Challenges and risks associated with the use of instruments for identifyign labour
       shortages and the need for migration labour in France ................................................................. 38
       Q12.b. Existence of shortage occupations which are not addressed through labour migration .... 39
SECTION 3: MONITORING THE OUTCOMES OF LABOUR MIGRATION POLICY IN
RELATION TO SHORTAGE OCCUPATIONS ............................................................................. 40
   Q13. Monitoring of the outcomes of labour migration policies in relation to shortage occupations 40
       Q13.a. Monitoring mechanisms (e.g. workforce analysis, analysis of types and number of work
       permits granted, sectoral analysis, discussions with employers, etc.) ........................................... 40
       Q13.b. Monitoring level of labour migration policy outcomes ..................................................... 40
       Q13.c. Organisations carrying out such monitoring ...................................................................... 41
       Q13.d. Monitoring in legislation or soft law ................................................................................. 41
   Q14. Use for each of the instruments and tools used for monitoring the outcomes of labour
   migration policy in relation to shortage occupations ........................................................................ 41
   Q15. Role of social partners (including organised representatives of employers and employees) and
   other stakeholders in monitoring the effects of labour migration on the labour market ................... 41
   Q16. Challenges associated with monitoring the outcomes of labour migration policy in relation to
   shortage occupations and impact of labour migration on the labour market at large ........................ 42
ANNEX 1 - SHORTAGE OCCUPATIONS ..................................................................................... 44
   A1. Workers employed by selected occupation and estimated unfilled positions (statistic for the
   latest available year) .......................................................................................................................... 44
   A2. Top 30 professions included in the list of 30 shortage occupations (statistics for the last
   available year) by occupational classification ................................................................................... 49
ANNEX 2 - LIST OF SHORTAGE OCCUPATIONS SET BY DECREE .................................... 54
ANNEX 3 – LIST OF PEOPLE INTERVIEWED OR HAVING CONTRIBUTED TO THE
STUDY ................................................................................................................................................. 64
ANNEX 4 - BIBLIOGRAPHY ........................................................................................................... 67

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

EXECUTIVE SUMMARY

The European labour market faces several challenges: an ageing society, rapid technological
changes, increasing demand for highly skilled labour and uncertainty about the future growth
of European economies.

It is, therefore, essential to identify and address labour market shortages which could affect
growth through their adverse effects on labour productivity.

These discussions take place within the context of the Europe 2020 Strategy, the EU’s strategy
to promote growth and employment. One of the objectives is to create jobs and skills and to
reach an employment rate of 75%.

To respond to economic and demographic realities, EU Member States have developed a
competitiveness policy to attract talent and skills with a sectoral approach to legal migration
and flexible admission mechanisms which respond to each State’s priorities.

The aim of this study is to establish the connections between migration policy and labour
shortages in France.
The first part of this study sets out the national immigration policy and recent public
discussions on labour migration.
It examines the extent to which conditions of entry and residence for third-country nationals in
France are directly connected to labour shortages, as well as the policy instruments used to
manage labour migration.
It then presents recent public discussions on labour migration, particularly on the ways in which
labour migration is used to respond to labour market shortages.
The second part initially presents research and analysis to identify labour market and skills
shortages.
It then looks at the process of drafting lists of shortage occupations and identifying the
stakeholders involved in drafting these lists. Finally, it analyses the conclusions of these
instruments and presents the associated risks and challenges of using them in connection
with the needs for labour migration.
It demonstrates that, although sectoral and foresight research and analyses aim to identify labour
and skills shortages, there does not appear to be any link between this research and lists of
shortage occupations which are established in connection with labour migration.
The third part monitors the outcomes of labour migration policy in terms of labour
market shortages by examining the tools and mechanisms and by studying the use of these
instruments, the role of the social partners and other stakeholders. It also presents the challenges
and risks associated with using these tools.
The elements presented may raise questions about the connections between the labour
market analysis tools which have been established by the government, the needs of
business, and current migration policy.
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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

Finally, this study presents possible areas for reflection to develop a new mechanism which
would enable the labour market to continue to be protected and to respond more
appropriately to the needs of the French economy.

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

              SECTION 1: GENERAL OVERVIEW OF THE NATIONAL LABOUR
              MIGRATION POLICY AND RECENT PUBLIC AND POLICY DEBATES ON
              LABOUR MIGRATION IN FRANCE
      Q1. DESCRIPTION OF THE NATIONAL LABOUR MIGRATION POLICY
      FUNCTIONS IN FRANCE.
          Q1.A. ARE CONDITIONS FOR ENTRY AND STAY FOR (CATEGORIES OF)
          THIRD COUNTRY NATIONALS PROVIDED IN NATIONAL LEGISLATION
          LINKED TO SHORTAGE OCCUPATIONS?

Immigration policy in France has traditionally focused on two areas:
family/humanitarian migration and labour migration. The connection between these two
areas has changed over time, depending on the economic situation of the country. Thus, labour
shortages or increases in unemployment have resulted in more foreign workers entering the
country or, in contrast, have reduced labour migration.

Today, with more than 17,800 admissions for residence being granted to third country nationals,
i.e. more than 8% of new admissions for residence, labour migration is in third place behind
family immigration and student immigration, which represent 45% and 30% of admissions
respectively.

Admission for residence of third-country nationals

    Reasons for admission                                         2013 (provisional)
    A. Economic                                                       17,832
    B. Family                                                         93,173
    C. Student                                                        62,614
    D. Other                                                          12,952
    E. Humanitarian                                                   17,425
    Total                                                            203,996
Source: Report to Parliament 2013

In order to work in France, a third-country national must apply in advance for a work permit
and/or residence permit. This is granted if various criteria are met, in particular identical
conditions of employment and remuneration between French and foreign employees for
salaried work, the feasibility of an economic project, etc.

Applications for a work permit for salaried work are subject to examination of various
criteria set out in the Labour Code,1 in particular:

      –   the employment situation is not applicable ;
      –   the professional qualifications of the applicant match the job being offered
          (qualifications, career experience, etc.);
      –   employment and remuneration conditions must be the same as that for other workers in
          the same occupational group;

1
 Article R. 5221-20:
http://www.legifrance.gouv.fr/affichCodeArticle.do?cidTexte=LEGITEXT000006072050&idArticle=LEGIART
I000018495606&dateTexte=&categorieLien=cid

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

      –    the gross monthly salary must be at least equivalent to the minimum monthly wage
           (Salaire Minimum Interprofessionnel de Croissance - SMIC);2
      –    the employer complies with labour and social protection legislation.

The specific case of foreigners who reside illegally in France should be reported.

The exceptional admission for residence mechanism takes into account elements which may
contribute towards the assessment of individual situations. Foreigners may, therefore, be
regularised on the grounds of private and family life or for work reasons if they can demonstrate
that they have lived and worked in the country with an employment contract in line with the
legislation in force. In this case, the employment situation is not applicable to refuse the
application for permission to work.

This is a significant way of accessing the French labour market for sectors which often face
proven recruitment difficulties and which often include poorly qualified jobs.

               Volume of exceptional admissions for residence of foreign nationals
                                      (France as a whole)

                                                                        2013
                                                                       30,536
                          Private and family life
                                Employee                                4,403
                                 Students                                331
                                   Total                               35,270
                                  Source: DSED/DGEF/Ministry of the Interior

The employment situation is the main criterion used by the authorities, i.e. the Prefect who
takes the decision whether or not to grant a work permit. This criteria was established in 1974
to protect the national labour market. Its main aim is to promote integration into the labour
market of job seekers and foreigners who reside legally on French territory, regardless of their
nationality.
This is the principle of preference for the national and European labour market.

           Q1.B. INSTRUMENTS IN PLACE IN FRANCE FOR MANAGING ECONOMIC
           MIGRATION (QUOTAS, LABOUR MARKET TESTS, POINTS-BASED
           SYSTEMS, OTHER INSTRUMENTS) AND THEIR LINKS TO LABOUR
           SHORTAGES IDENTIFIED
Two aspects are taken account in determining the ‘employment situation’ criterion:
pressure on the labour market for the job in question (relationship between supply and
demand) and what the employer has already done to look for candidates.

Foreign nationals who are not eligible for the specific flexible procedures (see Box page 14)
and who are recruited for a salaried position in a sector and geographic zone which is facing
recruitment difficulties and which features on a national list drawn up by the administrative
authorities, cannot be refused a work permit on the grounds of the employment situation.

2
    For information, on 1 January 2015, the SMIC amounted to €9.61 gross per hour.

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

Different lists exist according to whether the employee is a third country national (or from a
new EU Member State - subject to a transitional period in relation to the free movement of its
workers),3 or when they fall within a bilateral joint management agreement where a specific list
of shortage occupations has been established4

Foreign nationals, therefore, remain subject to the employment situation criteria when:
   - their occupation is not listed in a bilateral agreement which is applicable given their
       nationality;
    - their occupation is not listed in the Decree of 18 January 20085 applicable to third
       country nationals, with the exclusion of Algerian nationals, who are exclusively covered
       by the French-Algerian agreement of 27 December 1968, revised (or that of 1 October
       20126 for EU nationals during transitional periods);
   - and they are applying for a residence permit which is not covered by the relaxed
       procedures.
When a foreign national cannot claim to fall within one of these exceptions, the employment
situation criterion must therefore be verified.

This verification is conducted while assessing the application for a work permit: the
employer must provide proof of having looked for candidates with Pôle Emploi or another body
providing similar services to the public employment service (such as the Association for
Professional Recruitment (APEC), temporary work agencies, etc.). If candidates have applied
for the vacancy, the employer must explain why they were not selected and mention any specific
nature of the position.
They must then study the job statistics provided by the statistical departments of the Regional
Directorates for Business, Competition, Consumer Affairs, Labour and Employment
(DIRECCTE) to find out for a given post within a specific employment area or region, the
number of job seekers, the number of registered vacancies according to length of contract, the
leakage rate for job vacancies and the rate at which vacancies are filled.7
By comparing this information, it can be checked whether the employer has indeed already
sought applicants, if research for candidates are ‘honest’ and genuine, and if, despite
unfavourable statistics (indicating a high unemployment rate), it is possible to recruit a foreign
employee because of a certain feature of the position or specific skills of the employee.

         Q1.C. TO WHAT EXTENT DOES FRANCE VIEW IMMIGRATION AS A TOOL
         TO ADDRESS LABOUR SHORTAGES? WHAT OVERALL ROLE FOR
         MIGRATION TO ADDRESS LABOUR SHORTAGES IS ENVISAGED BY POLICY
         IN FRANCE?

3
  Croatia became a member of the EU on 1 July 2013 and was subject as such to transitional measures for a period
of two years until July 1, 2015.
4
  The list of shortage occupations in bilateral agreements is available in the Annex 2 - list of bilateral agreements
available on: http://www.immigration-professionnelle.gouv.fr/proc%C3%A9dures/m%C3%A9tiers-en-tension
5
  Decree of 18 January 2008: http://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000017937372
6
  Decree of 1 October 2012:
http://www.legifrance.gouv.fr/affichTexte.do?cidTexte=JORFTEXT000026483654&dateTexte=&categorieLien
=id
7
  See glossary on page 20.

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

For several years, France has followed a policy of welcoming talent which does not respond
to labour shortages but focusses on welcoming target groups who can contribute towards the
economic development and reputation of France. This policy, which aims to revive labour
immigration, is also based on a precise evaluation of ‘the need for labour migration’.8

Thus of the 17,832 first residence permits issued in 2013 for economic reasons (for a stay of
more than three months), only certain categories of employee received a work permit after
having checked that the employment situation permitted them to be recruited (see the table on
p.14).

It can therefore be estimated that fewer than 10,000 foreign nationals are subject each year to
the principle of the employment situation for a wok permit application. However, this estimate
does not take into account two factors enabling exemption from this criteria, namely nationality
and the occupation in question, which mean the employee may be eligible for the list of shortage
occupations.

Moreover, it should be noted that family immigration is the most significant vector in terms of
migration flows, representing more than 45% of all admissions for residence in 2013. This
population has direct access to the labour market, and is therefore not covered by the
mechanisms which have been established to protect the national labour market. This is also the
case for humanitarian immigration (8% of total admissions).

To conclude, only a limited number of foreigners moving to France to take up paid
employment are subject to the employment situation criterion and will be recruited to
respond to labour market needs as the result of a lack of available applicants in the labour
market.

8
 Report of the French Council of Economic Analysis (Conseil d’Analyse Économique): Immigration,
qualifications et marché du travail, La Documentation Française, 2009 (p. 42)

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

     The criterion of the employment situation per legal grounds of labour migration
Categories of foreigners who are not subject to the employment situation principle:

     -   students holding a qualification at least equivalent to a master’s degree may seek a
         Provisional Residence Permit (Autorisation Provisoire de Séjour - APS)9 with a view
         to seeking their first work experience, as long as they fulfil the criteria for remuneration
         and employment in line with qualification obtained;
     -   foreigners arriving within the context of intra-group transfers as well as highly qualified
         workers who respond to remuneration and specific career profiles;10
     -   artists, in light of their particular professional activity;11
     -   holders of the ‘skills and talents’ card;12
     -   scientists;13
     -   certain categories of employees falling within bilateral agreements (for example,
         ‘working holiday’ visas,14 young professionals,15 French-Russian agreement16)

The various legal grounds of labour migration in terms of the employment situation criterion:
                                                                  The employment situation
                                              2013
                                                                            criterion
 1 - Skills and talent                         251                             NO
 2 - Non-employed worker                       150                             NO
 3 - Scientist                                3,029                            NO
 4 - Artist                                    147                             NO
                                                                YES, except for intra corporate
 5 – Salaried Employee                       12,981          transferees, holders of European blue
                                                              cards (EBCs) and students holding a
                                                                  provisional residence permit
                                                              (Autorisation provisoire de séjour -
                                                                              APS)
 INCLUDING
     - intra corporate transferees
         (three years permit)                 2,388                            NO
     - Holders of European blue
         cards (EBCs)                          371                             NO
     - Students who have changed              5,500            YES, other than those holding an
         their status to employee          (estimate)                         APS*
 6 - Seasonal or temporary worker             1,274            YES for other than posted workers
 INCLUDING seasonal workers
 (three years permit)                          857                            YES
 TOTAL                                       17,832
Source: Ministry of the Interior - DGEF - DSED).
*Number of APS issued to students looking for employment in 2013: 5,484 (provisional figure)
9
  Article L.311-11 of CESEDA (Code on Entry and Residence of Foreigners and Right of Asylum)
10
   Article L.313-10, paragraphs 5 and 6 of CESEDA
11
   Article L.311-9 of CESEDA
12
   Article L.311-1 of CESEDA
13
   Article L.311-8 of CESEDA
14
   Articles R. 311-3, 3b of CESEDA and R.5221-13, paragraph 15 of the Labour Code
15
   http://www.immigration-professionnelle.gouv.fr/proc%C3%A9dures/fiche/jeunes-professionnels
16
   http://www.immigration-professionnelle.gouv.fr/textes-de-référence/accords-bilatéraux/accord-france-russie

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

       Q2. DESCRIPTION OF RECENT PUBLIC AND POLICY DEBATES IN THE AREA
       OF LABOUR MIGRATION, ESPECIALLY WITH REGARD TO DEBATES ON
       HOW LABOUR MIGRATION IS PLANNED TO BE UTILISED TO ADDRESS
       LABOUR MARKET SHORTAGES.

In 2012, the French President agreed to organise a parliamentary debate on labour
immigration for the purposes of employment and study.

The backdrop to this debate is the National Pact for Growth, Competitiveness and
Employment,17 adopted on 6 November 2012. This Pact focusses particularly upon
strengthening France’s attractiveness by ‘welcoming foreign talent and professional visitors
who can contribute to the dynamism and reputation of the French economy’.18

Discussions therefore took place in 2013 in the context of organising this debate without a vote.
As background to the discussions, statistics were produced on immigration in France, Europe
and the world, and consultation meetings were held with civil society stakeholders, such as
employers’ and workers’ organisations (the Confédération Française Démocratiques du
Travail - CFDT, the Confédération Générale du Patronat des Petites et Moyennes Entreprises
- CGPME, the Confédération Générale du Travail - CGT and the Collective du 31 Mai),
representatives of the world of business (the Invest in France Agency - IFA, the CINDEX),
representatives of universities and students (the Conférence des Directeurs d’Écoles Françaises
d’Ingénieurs - CDEFI, the Conférence des Grandes Écoles - CGE, the Confédération des
Jeunes Chercheurs - CJC, the Union Nationale des Étudiants en France - UNEF) and managers
of non-governmental organisations.

In terms of the work permit regime, discussions confirmed the principle of maintaining the
work permit which would dissuade the entry of foreign workers into non-shortage occupations.
Moreover, it was deemed to be ‘dangerous to change the general balance of the legislation
relating to the recruitment of foreign workers.’19

In addition, a ‘discussion on prioritising the elements involved in evaluating applications and
the creation of a more sophisticated grid to assess regional labour needs’ was planned.20

Indeed, it was considered that ‘labour migration must respond to structural difficulties in
the labour market, while remaining flexible in light of temporary realities. It should not be
disconnected from employment and vocational training policies, whether on the national or
regional levels.’21

It also emerged from the discussions that the employment situation criterion is used less and
less as part of the policy to promote the attractiveness of France. Consequently, it was suggested

17
   http://www.economie.gouv.fr/ma-competitivite/pacte-national-croissance-competitivite-emploi
18
   http://www.economie.gouv.fr/files/files/import/feuilleteur/sources/indexPop.htm
19
   According to the preparatory document for the debate without a vote on migration for employment and study
    purposes, as well as statistics on labour and student migration: http://www.interieur.gouv.fr/Actualites/L-actu-
    du-Ministere/Document-preparatoire-au-debat-sans-vote-sur-l-immigration-professionnelle-et-etudiante
20
   Ibid.
21
   Ibid.

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

that ‘new, stable rules are found which can be rapidly applied and can effectively protect
the labour market while responding to our economy’s needs.’22

Other work on immigration also took place in 2013 and 2014.23 The conclusions of these reports
focus on the conditions under which foreigners are received and on measures to promote the
attractiveness of France for foreign talent, but do not address the issue of labour market
shortages.

22
     Ibid.
23 In April 2013, a report on welcoming foreign talent was submitted to the Ministers of Foreign Affairs, the
Economy and Finance, the Interior, Foreign Trade, Economic Regeneration, Further Education and Research, and
Small and Medium-sized Enterprises, Innovation and the Digital Economy. Twenty-seven recommendations were
made, particularly relating to measures aiming to encourage outstanding international candidates, and thus to
ensure that administrative limits on entry and residence are as flexible as possible for those whom France wishes
to    attract    (http://www.interieur.gouv.fr/Publications/Rapports-de-l-IGA/Immigration/Accueil-des-talents-
etrangers).
In May 2014, Member of Parliament Matthias Fekl submitted a report to the Prime Minister entitled ‘A Secure
Path for Foreign Nationals in France’ (Sécuriser les parcours des ressortissants étrangers en France) focussing
on implementing the multi-annual residence permit, improving reception and procedures for processing
applications submitted by foreign nationals in Préfectures, as well as the judicial review of detention and removal.
This report sets out 25 recommendations in response to questions which had been raised
(www.immigration.interieur.gouv.fr/.../Synthese-rapport-Fekl-V3.pdf).

                                                                                                                16
EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

      SECTION 2: OVERVIEW OF INSTRUMENTS USED FOR IDENTIFYING
      CURRENT AND FUTURE LABOUR AND SKILLS SHORTAGES AND FOR
      ANTICIPATING THE NEED FOR LABOUR MIGRATION
      Q3. DEFINITION AND CLASSIFICATION OF LABOUR SHORTAGES
       Q3.A. HOW ARE LABOUR SHORTAGES DEFINED, IDENTIFIED AND
       CLASSIFIED IN FRANCE?

The labour market is characterised by constant flows of jobs being created and destroyed. The
reports also mention vacant positions, labour shortages, shortage occupations and supply
which does not meet demand.

These terms should first be defined.

Labour shortage refers to a quantitative lack of labour in relation to demand at a certain salary
level, while shortage occupations refers to recruitment difficulties encountered by the
employer where the supply of labour exists but is difficult to access at a given time due to lack
of mobility, qualifications, excessive turn-over or lack of attractiveness of certain occupations.

The use of the terms ‘needs’ and ‘shortages’ is often criticised as being irrelevant. Indeed, in
economics, ‘shortages’ are determined on the basis of a quantitative macroeconomic
analysis of pressure, namely the way in which supply and demand adjust to one another.24

If demand for employment is insufficient in relation to the corresponding supply, the labour
market is said to be ‘tight’. Shortage occupations, ‘recruitment needs or difficulties’, are
considered from the employer’s perspective, hence more from a qualitative microeconomic
analysis.25

Similarly, according to the DIRECCTE Île-de-France Research, Statistics and Evaluation
Service (Service études, statistiques, évaluation), the concept of ‘labour shortage’ is
inappropriate. It is preferable to use the term ‘indicator of tension’.26

In terms of issuing a work permit, the legislator also refers to ‘recruitment difficulties’ (see
R.5221-20 of the Labour Code), rather than labour shortages.

Often, in France, these two terms are related and are considered as synonyms. However,
there may be difficulties in recruiting labour without there being a labour shortage.

According to France Stratégie,27 there are different ways of observing certain shortage
occupations and labour shortages:

24
    Report of the French Council of Economic Analysis (Conseil d’Analyse Économique): Immigration,
qualifications      et     marché       du      travail,      La     Documentation   Française, 2009,
http://www.ladocumentationfrancaise.fr/rapports-publics/094000300/
25
   According to the BREF – Île-de-France supplement from DIRECTTE, No. 14, November 2008.
26
   Interview conducted in April 2015 with representatives of DIRECCTE Île-de-France.
27
   Interview conducted in March 2015 with representatives of France Stratégie.

                                                                                                  17
EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

     -   Through the unemployment rate or demand for employment (number of job seekers /
         number of jobs);
     -   By observing the way in which the labour market operates and variations/imbalances
         between supply and demand;
     -   Through surveys conducted directly with employers on their recruitment difficulties;
     -   Through the rate of unfilled vacancies;
     -   Through variations and changes in salary levels (this tool is not used in France to identify
         labour shortages).

These approaches described by France Stratégie can be found in studies, investigations
and reports on labour shortages in France but vary in terms of the indicators used, the
chosen angle of analysis and the objective.

         Analyses of pressures and unfilled vacancies by sector of activity.

Such analyses enable rates of unfilled vacancies by sector of activity to be determined, such
as the quarterly report ‘Labour employment activities and conditions’ (Activités et conditions
d’emploi de la main d’œuvre), known as Acemo28 conducted by the Directorate for Research,
Studies and Statistics (DARES). They also enable labour market pressures to be identified,
such as the quarterly report published by DARES. This report analyses the indicator of labour
market pressure which compares job offers collected by Pôle Emploi (French national
employment services) with job seekers registered by Pôle Emploi.29

The 2013 report by the French Employment Counselling and Advisory Board (COE)30 entitled
‘Long-term vacant positions and recruitment difficulties’ (Emplois durablement vacants et (les)
difficultés de recrutement’) presents the various statistical instruments which identify vacant
positions for job seekers, identifies occupations to which employers find it difficult to recruit,
and draws up typologies of reasons for these recruitment difficulties as well as suggestions for
combating these recruitment difficulties.

         Surveys of employers on their recruitment needs and difficulties by occupation

These surveys involve surveying employers directly about their recruitment needs and
difficulties. Thus, the ‘Labour Market Needs’ survey (Besoins de Main d’œuvre - BMO),31
which is conducted annually by Pôle Emploi with establishments in the private sector,
agricultural sector and certain public sector establishments, measures employers’ recruitment
intentions and the recruitment difficulties anticipated for the year ahead, by occupation, sector
of activity and area of employment. The results of this survey may improve the way in which
job seekers are referred to training or occupations which match the needs of the labour market.

28
   DARES study: Activités et conditions d’emploi de la main d’œuvre, known as Acemo, http://travail-
emploi.gouv.fr/etudes-recherches-statistiques-de,76/statistiques,78/salaires-et-epargne-salariale,86/aide-a-la-
reponse-a-l-enquete,654/l-enquete-trimestrielle-acemo,4108.html
29
   Quarterly report from DARES on labour market pressures, http://travail-emploi.gouv.fr/IMG/pdf/2015-
018.pdf
30
   COE report: Emplois durablement vacants et difficultés de recrutement, 2013,
http://www.coe.gouv.fr/Adoption-du-rapport-Emplois-durablement-vacants-et-difficultes-de-recrutement.html
31
   Pôle Emploi survey: Besoins de main d’œuvre, known as BMO, 2015, http://bmo.pole-
emploi.org/static/bmo2015

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

Some professional branches have also established observatories (Mouvement des
Entreprises de France - MEDEF; Union des Industries et des Métiers de la Métallurgie -
UIMM; the construction and public works sector - BTP) to identify their recruitment needs
and difficulties by occupation, to understand the difficulties encountered and to identify the
skill sets required (see page 36-37).

The Manpower Group also conducts an annual ‘Talent Shortage Survey’32 in 42 countries and
regions to measure the proportion of employers facing recruitment difficulties, to identify
positions which are difficult to fill and to determine shortfalls in skills preventing access to
employment.

Finally, the National Institute for Statistics and Economic Research (INSEE)33 asks questions
on recruitment difficulties in its business surveys which contribute towards a general picture
of the French economy.

        Foresight and/or forecasting analyses

While the analyses of the sector and surveys with employers presented above analyse the
situation of the labour market by comparing demand and supply, foresight and forecasting
analyses focus on the evolution of the labour market in the coming years.

Thus, France Stratégie, in partnership with DARES, conducts a Forward Looking Analysis of
Occupations and Qualifications (Prospective des métiers et des qualifications - PMQ) for
the medium to long term. The last publication, ‘Occupations in 2022’ (Les métiers en 2022),34
updated the macroeconomic projections upon which the preceding exercise, conducted in 2012,
was based, which did not take into account the economic downturn observed in 2011.

Broken down into 85 occupations, this study provides projections about the number of
departures into retirement and net jobs created per occupation. Projections of changes in jobs
by sector are also provided. This exercise does not, however, include any systematic
comparison of supply and demand by occupation. In contrast, it highlights anticipated vacancies
(creation of net jobs and departures into retirement) in the medium to long term, the current
trends by which occupations are filled (types of labour used, any turn-over, etc.) and current
recruitment difficulties being experienced.

Several forward looking analyses have also been conducted by observatories on sectors of
activity and regional job-training observatories (particularly in the metallurgy sector and
civil engineering).

        Finally, the list of shortage occupations, as described in Q6, is a particularly useful tool
        for identifying labour shortages.

32
   Manpower Survey: Talent Shortage Survey, 2014, http://www.manpowergroup.fr/tag/penurie-de-talents/
33
   INSEE’s monthly business survey: http://www.INSEE.fr/fr/themes/indicateur.asp?id=11
34
    PMQ exercise by France Stratégie in partnership with DARES: Les métiers en 2022, 2014,
http://www.strategie.gouv.fr/publications/metiers-2022-0

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

                               Glossary of some indicators of tension35

       The rate of tension is calculated by comparing registered job offers with the number of job
       applications over a set period. It identifies whether or not there is pressure on an occupation
       depending on the alert thresholds of the ratio. If the ratio is higher than 1, there is high
       pressure on demand: there are more job offers than applications, and therefore there is a
       labour deficit. Conversely, if the ratio is lower than 1, there is low pressure or a demand
       deficit. This rate of tension may be combined with other indicators of tension to promote
       analysis and understanding of the labour market and shortage occupations, such as the
       quality of job offers, the leakage rate of labour market demand, and the rate at which jobs
       are filled.
       The rate at which job offers are filled is calculated by comparing the volume of job offers,
       regardless of their duration, from Pôle Emploi records which were ‘filled’ by a job seeker
       (or not), and the total volume of job offers processed and from Pôle Emploi records over
       the past 12 months, whether they be set aside, filled or cancelled.
       The leakage rate of demand for employment (calculated on a sliding year, i.e. 12
       consecutive months) estimates the probability for a job seeker to rapidly find a job. It is
       calculated by comparing job applications at the end of the year to job applications at the end
       of the last year, to which are added job applications recorded during the year. If the result
       obtained is high, this means that most job seekers present at the start of the reference period,
       or registered within the last 12 months, have ultimately left the Pôle Emploi records.
       Conversely, if the result is low, this means that the labour market is tight, and that job
       seekers face various difficulties to joining the labour market quickly.
       The unfilled vacancy rate (or level of job vacancies) is calculated by comparing vacant
       and filled jobs, to which are added vacant jobs which is then converted into a percentage
       (x100).
       The quality of job offers: this indicator is important insofar as the rate of tension takes into
       account all job offers without distinction as to different types of contract (fixed term and
       temporary contracts, regardless of length). Other variables may also be introduced, such as
       the proportion of temporary jobs or those offered as full-time positions.

35
     Sources: Bref Ile de France N°14, November 2008 – DARES Indicators March 2015 N° 18

                                                                                                    20
EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

        Q3.B. THE LEVEL OF ANALYSIS (E.G. BY SECTORS, BY OCCUPATIONS OR
        BY QUALIFICATIONS OR SKILL LEVELS)

The level of analysis of the tools mentioned in Q3.a. depends on the aim of the research, survey
or report in question.

Analyses by sector of activity are included in the BMO survey and the INSEE economic trends
survey.

Analysis of the relationship between supply of and demand for employment (indicator of
tension) is conducted using a very fine-tuned occupational list, the Operational Directory of
Professions and Occupations (ROME36) used by Pôle Emploi.

Occupational families (Familles Professionnelles - FAP37) are used both by DARES as part of
its indicators of tension in the labour market, and by Pôle Emploi for the BMO survey. This
FAP list combines the ROME directory used by Pôle Emploi for occupations with the
socioprofessional categories used by INSEE.

In contrast, as part of the employers’ surveys, establishments are questioned on the basis of a
representative sample of sectors of activity, region and occupational group. These studies
take a regional approach to best respond to the needs of businesses.

Qualifications appear in the ‘Employment and Occupations of Migrants’ study (‘L’emploi et
les métiers des immigrés’) by France Stratégie 38 as well as in the BMO survey. This criteria
helps to identify the types of occupations experiencing recruitment difficulties, to adapt, where
necessary, the corresponding training and to clarify skills gaps.

         Q3.C. CLASSIFICATIONS OF SHORTAGES IN LEGISLATION OR SOFT LAW

Classifications of labour shortages, such as analyses of tensions and vacant jobs by sector,
foresight analyses and surveys with employers or observatories of occupational sectors, are not
defined in the legislation if they relate to research and reports from public bodies,
institutional partners or trades union organisations.

Only lists of shortage occupations which are marked by recruitment difficulties are defined
through regulations (see Q6) with a view to controlling labour migration and regulating the
labour market.39 The departments responsible for work permits are obliged to apply these
regulations. If they fail to do so, the decision may be revoked on the grounds of an error of law
in the event of appeal to a higher administrative authority or to a Court of justice.

36
   The ROME directory, which consists of a letter and four numbers, is divided into three levels: it differentiates
14 families of occupations, 110 occupational fields and 531 occupational files (combining more than 10,000
different categories of occupations and jobs).
37
   The FAP identifies 22 occupational areas, divided initially into 87 occupational groups, sub-divided into 225
detailed occupational categories.
38
   L’emploi et les métiers des immigrés, February 2012 (by the Conseil d’Analyse Stratégique, CAS, formerly
France Stratégie), http://archives.strategie.gouv.fr/cas/content/document-de-travail-2012-1-l’emploi-et-les-
metiers-des-immigres.html.
39
   Article L.311-10 of CESEDA.

                                                                                                               21
EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

        Q3.D. TO WHAT EXTENT THE LEVEL OF ANALYSIS                                            INCLUDES
        REGION/LOCAL LEVEL?

Analyses of tensions and unfilled vacancies by sector are essentially conducted from a
national perspective.

However, indicators of tension in the labour market by occupation, produced by DARES and
Pôle Emploi, surveys with employers, such as the BMO survey by occupation, and certain
occupational sector observatories, incorporate a regional perspective insofar as they consider it
relevant to take into account employment areas, sectors of activity and regional particularities
relating to employment. Regional observatories are devoted to anticipating and observing
sectors and occupations in their region.

It is also interesting to note that only the Manpower Group survey40 includes Frances from a
European and international perspective.

      Q4. HAS FRANCE ESTABLISHED ANY DISTINCTIONS BETWEEN DIFFERENT
      TYPES OF LABOUR SHORTAGES, SUCH AS SHORT-TERM AND LONGER-
      TERM SHORTAGES, CYCLICAL SHORTAGES AND STRUCTURAL
      SHORTAGES?

There is one classification of occupations which traditionally experience tensions.

Industrial and IT occupations are most heavily influenced by economic cycles, known as
temporary tensions.

Other occupations are subject to seasonal tensions (the hotel and catering industries,
agriculture). Finally, some occupations are subject to structural tensions (high turnover, job
instability, arduous working conditions, and poor image of the occupation) or have few
resources available due to lack of specific qualifications.41

Analyses take into account these different types of shortages, whether they be analyses of
tensions and unfilled vacancies by sector or foresight analyses. The former deal primarily with
short term shortages, while the latter envisage different possible scenarios for the years to come
on a national basis (‘Les métiers en 2022’ by France Stratégie) or for a specific sector of activity
(see the UIMM prospective study on recruitment needs in metallurgy for 202542).
However, the France Stratégie survey does not quantify the comparison between supply and
demand for employment in the medium to long term; it takes a more qualitative approach.

40
   Manpower Survey: Talent Shortage Survey, 2014, http://www.manpowergroup.fr/tag/penurie-de-talents/
41
      Based on: Construire une carte régionale des formations, France Stratégie, 2011
(http://archives.strategie.gouv.fr/cas/content/document-dappui-methodologique-construire-une-carte-regionale-
des-formations-outils-methodes.html) and ‘Les tensions du marché du travail’, Bref Île de France, No. 14,
November                                  2008(http://www.idf.direccte.gouv.fr/IMG/pdf/Bref_supplement_no14_-
_comment_analyser_les_tensions_sur_le_marche_du_travail.pdf.
42
   UIMM study: Etude prospective des besoins de recrutement dans la métallurgie à horizon 2025, September
2014:
http://www.observatoire-
metallurgie.fr/etudes/Lists/DocumentsEtudes/Etudes%20longues/Prospective%20Emploi_Observatoire%20de%
20la%20Metallurgie.pdf

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EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

Q5. INSTRUMENTS/TOOLS USED IN FRANCE TO IDENTIFY LABOUR
SHORTAGES AND THE NEED FOR MIGRATION LABOUR.

                                                                                     23
EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

      The instruments      Is      this   Is this instrument   Description of the         (1) description of        Which      national         What      is     the   Additional
     and tools used to     instrument/    used           for   respective tools           the      level     of    organisation(s) use         geographical level of   comments
     identify   labour     tool used in   determining          and                        analysis of the          this                        the mechanisms/tools
     shortages and the     France?        labour migration     the                        particular               mechanism/tool to           used (e.g. national,
     need          for     (Y/N)          needs? (Y/N)         methodology(ies)           instrument/tools         produce                     regional, municipal)?
     migration labour.                                         used                       (i.e.          skills,   information      on
                                                               for anticipating           occupations,             skill shortages?
                                                               the need                   sectors, profession,
                                                               for migration              level              of
                                                               labour                     qualification, etc.)

                                                                                          (2)       Is        an
                                                                                          international (e.g.
                                                                                          ISCO-08)            or
                                                                                          national
                                                                                          classification      of
                                                                                          occupations used?
     List of shortage                                                                 (1) These           lists    These lists are used
                                                               a) This list of                                                            a) This list of 30
     occupations                                                                          represent                 by the Prefects to
                                                               occupations                                                                   occupations for third-
                                                                                          occupations               process       work
a)   National list of 30                                       marked           by                                                           country nationals is
                               Yes              Yes                                       identified         by     permit requests.
     occupations set                                           tensions        and                                                           divided      on     the
                                                                                          ROME which are
     by Decree of 18                                           recruitment                                                                   regional          level
                                                                                          connected to a job
     January 2008                                              difficulties was                                                              depending on the
                                                                                          description       for
                               Yes              Yes            reached        after                                                          particularities of the
                                                                                          each code.
                                                               consultation with                                                             local labour market
                                                                                      (2) The Pôle Emploi
                                                               the social partners                                                           and the employment
b) List of                                                                                wording is used to
                                                               and was the result                                                            area. Six occupations
   occupations set                                                                        draft these lists. It
                                                               of     preparatory                                                            apply to the whole of
   by bilateral                                                                           is close to the
                                                               work and a range                                                              metropolitan France.
   agreement                                                                              International
                                                               of indicators.                                                             b) These      lists    are
                                                                                          Standard
                                                               b) The lists set                                                              national     but    are
                                                                                          Classification of
                                                               by         bilateral                                                          reserved to nationals
                                                                                          Occupations
                                                               agreement were                                                                of the State which has
                                                                                          (ISCO).
                                                               defined on the                                                                signed a bilateral
                                                               basis of shortage                                                             agreement, whether

                                                                                                                                                                       24
EMN Focussed Study 2015: Determining labour shortages and the need for labour migration

                                occupations for                                                      the national lives in
                                nationals of new                                                     France or in his or her
                                Member States                                                        country of origin.
                                subject          to
                                transitional
                                provisions     and
                                take account of
                                the particularities
                                of each country.
                                (See the process
                                in Q6).
Sector analyses      Yes   No   a) The Acemo           (1) The Acemo          They are used by       They are drafted on
                                survey is a            survey,          the   occupational           the national level.
a) The Acemo                    quarterly survey       DARES report and       sectors         and
survey                          conducted by           the COE report         businesses, as well
                                DARES into all         look at sectors of     as in the public
b) The DARES                    competing sectors
report on job                                          activity in relation   sector (particularly
                                (excluding
offers collected                                       to     occupational    by the Ministry for
                                agriculture and the
by Pôle Emploi                                         areas.                 Labour,
                                public sector) in
on job seekers                  metropolitan                                  Employment,
registered by Pôle              France. It                                    Vocational
Emploi.                         calculates changes     (2)     The    FAP     Training and Social
                                in wages,              classification    is   Dialogue) to have
c) The COE                      employment and         used. This FAP list    an overview of the
(French                         length of              combines        the    labour market.
Employment                      employment.            ROME directory
Counselling and                                        used     by Pôle
Advisory Board)                 b) This publication    Emploi          for
report                          compares job
                                                       occupations and
                                offers recorded by
                                                       the
                                Pôle Emploi and
                                job seekers            socioprofessional
                                recorded by Pôle       categories used by
                                Emploi.                INSEE

                                                                                                                               25
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