The Economic Analysis Board suggests an increased use of private providers to help businesses hire.
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When they want to hire, the bosses face difficulties similar to those prevailing before the health crisis. To overcome them, one of the possible solutions would be to support businesses in their recruitment approaches by taking more use of private providers. This track is in a note broadcast, Monday, March 14, by the Economic Analysis Council (CAE), a Circle of Reflection placed with the Prime Minister. It is likely to displease those who consider that public services, as employment center, are better able to offer such assistance.
After the “unprecedented shock” of the recession related to the COVID-19 epidemic, the labor market found “a very favorable situation (…) from the summer of 2021,” written François Fontaine and Roland Rathelot, the two authors of the study. In the fourth quarter of 2021, the unemployment rate continued to decline, at 7.4% – a relatively high ratio, but less than the end of 2019 and had not been known since 2008. At the same time, The number of vacancies is gone up, so that “the tension seems (…) returned, in the third quarter 2021, at a close level or a little greater than it was in 2019”.
Priority for SMEs
In response to this problem, Mr. Fontaine and Mr. Rathelot suggested developing “targeted interventions” on businesses. In recent years, employment pole has deploying “its recruitment aid services” for bosses. An initiative that has demonstrated its “efficiency”, specifies the note.
Today, it is possible to go further, “by strengthening the means” granted to the public operator, but also “outsourcing a part” of its action to private companies. The idea is to promote the emergence of a “business accompanying market” that would be organized by the “Public Employment Service” – this term consisting of state administrations, local missions, pole job, etc.
In this market would be put in competition from private providers and, “possibly”, public – “for which performance indicators would be displayed”. Such a system would be intended to be introduced as a priority for SMEs, which are less well equipped to carry out hiring. The CAE also recommends the “Public Employment Service” to support a “certified tests” device to assess the ability of the candidates for a position, the results of these reviews are then communicated to businesses.