+22% increase in craft businesses in France over 5 years: Craftsmanship, a true bulwark against rural depopulation

Remarkably, the artisanal sector is growing everywhere, including in departments experiencing population decline. Simultaneously, the proportion of municipalities served by essential craft services (masonry, plumbing, auto repair, hairdressing, etc.) is increasing. Thanks to this dynamic, the craft sector plays a vital role in the economic and social well-being of local areas.

The number of craft businesses is increasing 10 times faster than the French population.

As of January 1, 2024, France has 1.521.000 active craft businesses, 22% more than in 2019, while the population only increased by 2% over the same period.

The momentum is particularly strong in rural municipalities (+24%) and small towns (+23%), while medium-sized towns (+21%) and large cities (+19%) show only slightly more moderate growth.

The craft sector is developing in close proximity to the population, with a slight overrepresentation in rural areas. 65% of craft businesses are located in rural municipalities and small towns, which together account for 60% of the population.

For Anne-Sophie Prissé, Marketing and Communications Director at MAAF: “This new ISM-MAAF barometer sheds new light on the territorial influence of crafts. Everywhere, from rural communities to major cities, craftspeople are more numerous and are reinforcing their role as an essential local service for the population. However, these results should not obscure the fragility of certain trades, such as butchery and delicatessen, where the number of active businesses is declining. Supporting these everyday skills means preserving social cohesion and the attractiveness of our communities.”

The network of small businesses is even growing in departments that are losing inhabitants

The map showing the density of small businesses highlights the stark divide between the North and South of the country. This historical reality is confirmed year after year.

Among the departments with the highest density of craft businesses, we find South Corsica (41 per 1000 inhabitants), Alpes Maritime (37) and Haute-Corse (36).

Conversely, the departments of French Guiana, Nord and Pas-de-Calais have fewer than 15 companies in the sector per 1000 inhabitants.

Between 2019 and 2023, the number of craft businesses increased in all regions, with rates above 20% (with the exception of Île-de-France: +16%).

The most sustained increases are observed in the French overseas departments and regions (DOM), on the Atlantic coast, the Mediterranean coast, the southeastern quarter and the Hauts-de-France region.

This growth also benefits departments that are losing inhabitants!

This is the case for Vosges (+23%), Meuse (+21%), Aisne (+19%), Nièvre (+18%), Haute-Marne and Indre (+17%).

More and more municipalities are being served by essential daily trade services.

The proportion of municipalities with so-called "essential" craft services is constantly increasing. These are everyday services such as home improvement (masonry, carpentry, plumbing), car repair, bakeries, or hairdressing.

In the building sector, where masonry is among the most widespread trades, 60% of municipalities now have at least one company in this sector, compared to 58% in 2019.

The service sector is also consolidating its position: car repair services are increasing from 48% to 54% of municipalities equipped with them, ahead of hairdressers, taxis, and florists. Beauty salons and nail salons are the fastest-growing businesses, rising from 30% of municipalities equipped in 2019 to 41% in 2024 (+11 points).

However, the food industry is an exception. The number of municipalities with a bakery remains stable: 1260 municipalities regained this activity between 2019 and 2024, but 1310 lost it (37% of municipalities remain covered).

Butcher shops and delicatessens are in significant decline: only 20% of municipalities are served. The business has disappeared from 1050 municipalities and has only re-established itself in 810 of them.

Craft employment is more prevalent in rural areas, but is developing faster in Île-de-France.

Craft workers represent 9% of salaried jobs in the market sector. This rate is much higher in rural areas, where it can exceed 15% in some departments such as Gers, Lot or Lozère, compared to around 4% in Paris.

The salaried employment in the craft sector (1.851.300 jobs in micro-enterprises with fewer than 20 employees at the end of 2024) increased by 5% between 2019 and 2024, although the trend has been reversing since the end of 2023. The highest increase was in Île-de-France (+7,5%), driven by Seine-Saint-Denis (+14%) and Val-d'Oise (+12%).

Conversely, salaried employment is declining in some rural departments, despite the increase in the number of businesses: Haute-Saône (-9%), Haute-Marne (-3%), Nièvre (-2%).

Craftsmanship is also a strong marker of the economic identity of each territory

The weight of different business sectors in salaried employment in the region reveals economic specializations. For example, in the Ardennes, craft employment in manufacturing is twice as high as the average (30% vs. 16%).

For Catherine Elie, Director of ISM studies: “The geography of crafts challenges many preconceived notions. The number of craftspeople is increasing everywhere, including in departments experiencing population decline, where crafts play a vital role in stabilizing the economy and maintaining essential services for the population. However, not all the signs are positive. The network of food-related businesses is weakening: butcher shops and delicatessens have disappeared from over a thousand municipalities in five years. And salaried employment in the craft sector is declining in several rural departments, despite the increase in the number of businesses. Beyond the entrepreneurial vitality, the real question is how to consolidate this network of very small businesses within local areas.”

Key points to remember for the building

• Craftsmanship continues to grow in France with 1,521 million craft businesses as of January 1, 2024.
• In five years, their number has increased by 22%, which is an evolution ten times faster than that of the population.
• The building trades contribute significantly to this dynamism and play an essential role in maintaining a local economic fabric.
• This local presence promotes employment, housing renovation, energy transition and access for individuals and professionals to qualified companies throughout the territory.

Study methodology

The Crafts Barometer is produced by the Institut Supérieur des Métiers with the support of MAAF. Published four times a year, this barometer highlights the major trends in the evolution of the crafts sector in its various economic and social components (characteristics of managers, businesses, and jobs, according to sectors and regions).

Sources: the barometer data comes from the processing and use, by the ISM, of national data files from INSEE and URSSAF

Illustrative image of the article via Depositphotos.com.