18% increase in job losses for managers of VSEs/SMEs in 2024, a record for 10 years, with construction and real estate at the forefront

• In 2024, 166 business leaders lost their jobs every day.
• Entrepreneurs in the construction and transport/logistics sectors are more affected by economic tensions.

Managers of very small and medium-sized businesses are particularly exposed. A third of entrepreneurs who lost their jobs were also at the head of a “mature” company, more than 10 years old.

For Thierry Millon, Director of Altares Studies: "Business failures have been breaking records for months and small businesses are paying a heavy price. Direct judicial liquidations or post-judicial reorganizations are predominant, eliminating the jobs of more than 60.000 managers in 2024 and probably even more in 2025. A particularly high number that tends to argue for very proactive risk management, whether professional or personal. An administrative challenge sometimes, or often financial, but an imperative at any age, even with solid experience. As an illustration, the loss of jobs of managers over 60 is accelerating sharply (+33%); an observation that resonates at a time of discussions on the employability of seniors."

Small businesses continue to experience crisis

Nearly three-quarters of entrepreneurs facing job losses are at the head of a VSE with fewer than 3 employees. The biggest increase concerns managers of VSEs with 6 to 9 employees, with +30,2% in one year, or 3.347 entrepreneurs affected. Conversely, managers of structures with more than 50 employees recorded a decline of -19,8%.

Furthermore, nearly 4 out of 10 entrepreneurs (24.390) were at the head of a structure with a turnover of less than 500.000 euros, compared to 369 generating more than 5 million euros in turnover.

A sharp increase in the number of job losses was also observed among craftsmen-tradespeople (+18,3%) and liberal professions (+16,6%).

Note: nearly a third of the entrepreneurs impacted were running a “mature” company, more than 10 years old. Proof that those at the head of long-term structures are also not immune.

Construction and transport sectors particularly exposed

The weaknesses of the construction sector are increasing in 2024 due to the increase in the price of materials: 14.928 women and men have lost their jobs (+23,7%), particularly in construction. Real estate agents, who have been hit hard by the increase in interest rates, are also affected (+34,7%).

Transport and logistics, whether freight or passenger, recorded an increase in job losses of +29,3%, well above the national average.

Trade is holding up, particularly in the food sector (-5,4%). Due to the slowdown in inflation, the increase in the number of job losses is moderate in retail clothing (+6,7%) or wholesale clothing (+1,8%).

Entrepreneurs in the security sector are also impacted, with a very significant increase of +112,8% (845 women and men).

While the accommodation, catering and beverage sector was suffering greatly, in 2024 it recorded one of its weakest increases (+6,6%) since the Covid crisis.

After a difficult 2023, industry is starting to show signs of recovery, with a slight decrease in job losses (-0,2%). The agri-food sector is benefiting from an improvement, thanks to a more favourable economic climate for activities related to bakery products (-8,3%). Other industrial activities, such as the automotive sector (-14,3%) and the production of machinery and equipment (-26,3%), are also showing encouraging signs.

Business leaders over 60 exposed

"Unemployment" is rising sharply among those over 60 (+33,2% over one year; 8.081 entrepreneurs affected). Nearly a third of them were at the head of a construction company (particularly in real estate) or catering. This observation also raises the question of the difficulties of transferring a business for "senior" entrepreneurs.

The under-26s are holding up with a moderate increase of 3% (1.277). The 41-50 age group remains the most affected (16.328; +17,1%), representing more than a quarter of job losses.

The median age of entrepreneurs who lost their jobs in 2024 is 46,3 years, a slight increase compared to 2023 (46 years).

Entrepreneurs in difficulty throughout the territory

Nearly a quarter of job losses are concentrated in the Île-de-France region with 14.227 business leaders affected, a significant increase of +25,2%.

Normandy recorded the highest increase with +27,9% (2.534). In the Pays de la Loire, 2.568 job losses were recorded, i.e. +26,8% in one year.

Two other regions show growth above the national average: South Region/Provence-Alpes-Côte d'Azur (+ 19,5%; 6.243) and Brittany (+ 19,1%; 2.304).

Corsica and Centre-Val de Loire are the two regions to remain below the 10% threshold, with respectively 366 (+8,9%) and 1.994 (+9,8%) business leaders in a situation of "unemployment".

Methodology

The data comes from the analysis of companies, excluding civil companies and associations, placed directly, by conversion or by resolution of the plan in compulsory liquidation by the Commercial or Judicial Court. The procedures for amicable closure or dissolution, as well as the dismissal of corporate officers, are not included.

Illustrative image of the article via Depositphotos.com.