Factory closures in France are set to impact "thousands of jobs" in the upcoming weeks and months, Industry Minister Marc Ferracci warned on Saturday. The announcement comes as the euro
zone’s second-largest economy grapples with a severe manufacturing downturn.
Ferracci shared his concerns during an interview with France Inter radio, just days after major employers Michelin and Auchan revealed plans for significant layoffs. These developments have sparked fears of rising unemployment, potentially reversing recent gains made over the past few years.
Key Concerns “Several sectors are in a worrying situation,” Ferracci stated, pointing to the chemical, automotive, and metallurgy industries. He attributed the difficulties to “very strong international competition … not always very fair because it is very subsidized in China and the United States.”
Current Context France's factory output has been steadily declining, according to business surveys, exacerbated by falling export orders, geopolitical tensions, and a slowing global economy. The economic strain has led to substantial challenges for the manufacturing sector.
Last week, tyre manufacturer Michelin announced the closure of two of its French plants, which will impact around 1,200 workers. The company cited increasing competition from low-cost Asian producers and rising energy prices in Europe as primary reasons for the decision.
As these closures loom, concerns are mounting about the broader implications for employment and economic stability in France. Photo by TrisHR, Wikimedia commons.