Both France and Germany shed jobs in Q3 2023 as more and more companies struggled with sluggish demand. Against this backdrop, labour shortages are limiting less production, particularly in Germany, where they were more acute. However, these shortages are persisting, as they are structural, against a backdrop of low unemployment. Output from sectors with the strongest demand (i.e. aeronautics particularly in France) may suffer as a result, as well as development of sectors with the highest labour needs, particularly industries associated with the green transition (electrification and renovation).
