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Housing Crisis in France Impacts SMEs' Recruitment, Reveals CPME Survey

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Mahnoor Jehangir
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Housing Crisis in France Impacts SMEs' Recruitment, Reveals CPME Survey

In a recent survey by the Confederation of Small and Medium-sized Enterprises (CPME), it has been revealed that the housing crisis in France is directly impacting the recruitment process for small and medium-sized businesses (SMEs). The survey indicates that nearly 20% of SMEs are grappling with recruitment issues due to candidates' struggles finding adequate housing. This alarming trend poses a significant threat to France's economic stability and growth.

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Recruitment Struggles and the Housing Crisis

According to the CPME survey, approximately 46% of SME leaders are eager to hire new employees, but an overwhelming 85% are facing recruitment challenges. These complications are particularly pronounced for SMEs employing between 10 to 249 individuals (69%) and industrial companies (57%). An increase from 10% in April, 19% of these businesses reported candidates rejecting job offers due to difficulties securing housing.

Business Leaders Respond to Recruitment Challenges

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In response to these challenges, 55% of business leaders plan to increase salaries at the start of the year, and 58% are considering offering bonuses in 2024. However, about half of the employers fear employee attrition due to the lack of pay increases, and 14% anticipate potential social conflicts within their companies, especially among larger SMEs.

Legislative Concerns and Potential Solutions

When it comes to legislation, 80% of business leaders fear negative impacts on their businesses if payroll charge reductions for wages between 2.5 and 3.5 times the minimum wage are decreased. They cited potential loss of competitiveness (51%) and wage compression (39%) as the primary concerns. Interestingly, 31% of employers believe that regularizing foreign workers could alleviate recruitment issues, an opinion more prevalent in the construction (47%) and road transport (43%) sectors.

In conclusion, the survey draws attention to how the housing crisis in France is not just a social problem but a significant economic issue affecting businesses' ability to recruit effectively. The CPME hopes to avoid retroactive application of this measure for three years. The survey was conducted online from October 26 to November 20, involving 1,418 SME leaders, 1,194 of whom have at least one employee.

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