Sharp increase in job losses for business leaders in the 1st half of 2023, construction and trade in the front line

The number of entrepreneurs facing job loss has returned to pre-crisis levels

For Anthony Streicher, President of the GSC association: “Nearly 140 business leaders now lose their jobs every day. After a year 2022 which already alerted us to the resumption of business failures, this acceleration observed in the first months of 2023 must encourage us to be extremely vigilant. While inflation, the rise in raw material costs, interest rates, the exhaustion of order books and the reimbursement of PGEs weaken business leaders, it is more important than ever to support them so that they can secure their professional trajectory. Because let's not forget: we will not be able to preserve our economy if we do not protect these women and men who are on the front line. »

For Frédéric Barth, Managing Director of Altares: “While economic growth is struggling in the 2nd quarter in the euro zone weighed down by Germany, France is showing remarkable vitality. However, the economy is showing signs of cooling. If inflation has already stifled household consumption, the rise in interest rates aimed at countering it should weigh on corporate investment which had until now remained very dynamic. In this context, the number of business failures, and therefore managerial job losses, will continue to increase during the second half of 2023 but again in 2024. At the end of August 2023, France already has 34.500 defaults over eight months i.e. the level observed at the end of August 2018.”

25.296 business leaders lost their jobs between January 1 and June 31, 2023. The median age of impacted entrepreneurs is 45,9 years. “Seniors” remain particularly concerned: more than a third of business leaders are over 51 years old. The question of professional rebound remains central for this mature population. The 31-40 year old and 41-50 year old categories have the most entrepreneurs in a situation of “unemployment” with 6.282 and 6.803 managers respectively. The Observatory also reveals a strong evolution among young managers (< 26 years + 40,1%; 26-30 years + 43,2%), which raises the question of supporting these young business leaders in the face of risk of job loss.

Entrepreneurs at the head of small structures (less than 5 employees) represent nearly 9 out of 10 job losses for the first half of 1. If the number of business leaders with more than 2023 employees who have lost their jobs has decreased during the Covid crisis, it doubled this first half compared to last year (20 to 1 employees + 20%; > 49 employees + 104,4%).

The figures also show this semester a stronger presence of large structures with an increase of more than 100% in business leaders declaring more than two million euros in turnover for their company.

SARL managers – 11.049 managers affected – form the bulk of job losses (45,6%), up +42,5% compared to H1 2022). However, the share of SAS managers (42,5%) increases this semester (+ 62,2%). The liberal professions recorded a lower rate (+ 10,2%) with 248 business leaders having lost their activity.

Business leaders at the head of a BtoC activity still very affected

Construction (+ 50,0%) and commerce (+ 47,2%) entrepreneurs remain the most affected with respectively 5.713 and 5.614 managers having lost their jobs in H1 2023. They alone represent almost half of the judicial liquidations.

The situation is deteriorating very clearly for professionals in the accommodation, catering and drinking establishments sector with 3.470 job losses (+ 65,9%). These sectors were impacted by the inflationary context which forced households to reduce their spending.

The personal services sector (notably hairdressing, beauty and body care activities) is also weakened by the drop in household spending: 1.152 business leaders lost their professional activity in H1 2023 (+ 57,8% per year). compared to H1 2022).

Difficulties are also present in the field of insurance and finance, which records the highest increase in managers having lost their jobs: 76,4%. These are mainly brokers and asset managers.

The business services sector seems to hold up better (+39,8%), but strong disparities appear between activities.

An increase in “unemployment” situations throughout the territory

In almost half of the regions, the increase in job losses amounts to + 50%.

Ile-de-France - the country's leading economic region - is one of the most affected territories: 5 entrepreneurs experienced this situation this year (+468% vs H47,9 1). This represents almost ¼ of job losses in France.

The Auvergne-Rhône-Alpes region is also very impacted. There are 2.902 managers who lost their jobs in H1 2023 compared to 1.841 in H1 2022, an increase of 57,6%.

In four other regions, the increase in job losses for managers stands at more than 50%: Normandy (+ 54,3%; 926), Nouvelle-Aquitaine (+ 56,6%; 2.130), l Occitanie (+ 55,3%; 2.239) and Pays de la Loire (+ 53,2%; 1.022).

In Centre-Val de Loire, the progression of managers in a situation of “unemployment” is also significant (+ 49,4%; 844 managers).

Provence Alpes Côte d'Azur and Overseas are the territories recording the lowest change in impacted business leaders with + 37,8% and + 31,1% respectively.

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.