SME managers in construction at the forefront of job losses in the first half of 1

• The number of job losses for managers in H1 2024 is approaching the record levels reached in France around ten years ago.
• Business leaders at the head of SMEs are weakened by the economic situation and the latter are not financially strong enough to cope with the ups and downs.
• Construction contractors account for more than a quarter of job losses. The difficulties in this sector have repercussions on the entire territory.

The number of entrepreneurs in a situation of “unemployment” on the rise

Since January 2024, nearly 30.000 have ceased their activity in France.

For Anthony Streicher, President of the GSC association: “For the person who will be appointed Prime Minister in a few days, the fight against the loss of jobs of business leaders must be a priority subject! More than 180 entrepreneurs have lost their jobs every day since the start of the year. The bad news from this first half of 2024 calls into question the inaction which leads to this situation because no actor, including public authorities, seems to understand what is at stake for leaders and our economy. Our creators of jobs and wealth are abandoned when their ship capsizes. Let’s stop looking the other way and protect our entrepreneurs. »

The median age of impacted entrepreneurs is 45,8 years. 40 business leaders aged between 50 and 8.146 have lost their jobs. Nearly a third of the managers concerned are over the age of 51. Young entrepreneurs under the age of 26 are the most spared this semester, 704 of whom found themselves without activity.

Tensions that increase depending on the size of the company

Managers of small structures (less than 5 employees) remain the most affected; they represent almost 9 job losses out of 10. The figures also show a very strong increase for managers at the head of companies with 6 to 9 employees (+ 40,2%; 1.661).

SMEs with 10 to 19 employees recorded 1.378 losses of activity, an increase of 31,1%. These companies have insufficient financial structures which weaken them: heavy payroll, difficulties in competing in calls for tenders, in financing their development or even in repaying the Covid debt which weighs on cash flow.

SAS managers (13.234 entrepreneurs affected) form the majority of job losses (45,8%), up 28,7% compared to H1 2023. Business leaders at the head of SARL also represent a large part of the activity losses (12.273; + 11,1%). Artisan-traders, strongly impacted by inflation in 2023, 2.668 found themselves “unemployed” (+ 22,6%) in H1 2024.

Entrepreneurs at the head of structures whose turnover is less than 500.000 euros represent nearly three-quarters (76,5%) of the women and men affected (12.715), confirming the fragility of small structures.

Construction activities in great difficulty

The real estate crisis affects all construction professionals: 7.669 business leaders in the sector have lost their jobs (+ 34,2%). General masonry and structural work contractors represent more than a quarter of these losses (1.615 business leaders). Among the other most weakened activities: real estate agencies (+ 66,4%), the construction of individual houses (+ 40,7%) and painting and glazing work (+ 35,1%).

Despite encouraging signals on several BtoC activities, the commerce sector is still in difficulty with 6.456 women and men who found themselves in a situation of “unemployment” (+ 15%).

Business leaders in accommodation, catering and drinking establishments are largely impacted with 3.734 job losses. More than a third of them had an activity in fast food. However, the sector shows an increase (+7,6%) well below the national average (+19,3%).

The situation is clearly deteriorating for the transport and logistics sector, which recorded a 30,5% increase in business losses in H1 2024 (1296).

3.716 business leaders working in business services found themselves in a situation of “unemployment”, an increase of 18,2%.

For Anthony Streicher: “The real estate crisis has dangerously affected the entire construction sector, while the transport of goods is showing signs of deterioration. No territory is immune to this trend and small and medium-sized players remain vulnerable, with no hope of significant improvement by the end of the year. »

An increase in job losses throughout the country

Île-de-France, a driving force for the country's economy, alone represents nearly a quarter of job losses in the first half of 1. 2024 business leaders found themselves in a situation of "unemployment" , an increase of almost 7.215% compared to the same period of the previous year.

The Auvergne-Rhône-Alpes region comes in second place with 3.454 managers impacted, compared to 2.902 in H1 2023 (+ 19%).

Normandy is experiencing an increase greater than the national average (+ 24,7%) with 1.155 managers unemployed this semester.

In the Grand Est region, 2.034 managers have lost their jobs (+ 18,3%). 2.887 women and men found themselves without activity in H1 2024 in the South Provence-Alpes-Côte d'Azur region, an increase of 16,7%.

Nouvelle-Aquitaine and Hauts-de-France are the territories recording the lowest change in impacted business leaders with +9,5% and +6,6% respectively.

For Thierry Millon, Director of Altares Studies: “Entrepreneurial dynamism has been exceptional for 20 years. While the threshold of 100.000 new commercial companies was crossed in 2003, that of 300.000 is already very close. While we must congratulate ourselves on this desire to undertake, we should note, however, that around four out of ten companies will not celebrate their fifth birthday. In this first half of 2024, nearly 30.000 managers will have lost their jobs after the judicial liquidation of their company, women and men exhausted by months of financial and legal battle to try to save activity and employment. Often a trauma, in particular for the third of these leaders aged over 50 who will find it more difficult to envisage their rebound. »

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.