The number of entrepreneurs who lost their jobs exploded in 2023 and construction is on the front line

• The rise in interest rates, the end of Covid aid and the resumption of Urssaf assignment procedures are accentuating the cash flow problems of business leaders.
• Experienced entrepreneurs, who have been running a business for an average of 7 years, were also impacted in 2023.
• The construction and accommodation/catering/drinking establishment sectors are particularly affected, with an increase of +40% over one year.

Every day, more than 140 business leaders lose their jobs

Difficulties are increasing for business leaders and leading to an increase in job losses: 51.555 people found themselves in a situation of “unemployment” in 2023 (+ 33,3%).

For Anthony Streicher, President of the GSC association: “The 2023 figures are very alarming, but unfortunately not surprising. Rising interest rates, overindebtedness of companies, end of Covid aid and the Urssaf moratorium... numerous indicators raised fears of an acceleration of judicial liquidations in France with significant job losses as a result. In 2023, every day, more than 140 business leaders found themselves unemployed, 40 more than in 2022! For two years, I have continued to warn about this reality and the need to inform business leaders about the job loss solutions available to them. Inaction must no longer be an option. »

The median age of entrepreneurs who experienced a job loss is 46 years old.

“Senior” managers remain particularly vulnerable: a third of affected business leaders are over the age of 51.

The increase is also significant for young entrepreneurs under 26: 1.240 found themselves losing their jobs, or +33,5% over one year.

Nearly nine out of ten entrepreneurs at the head of a VSE with fewer than 5 employees

More than 9 out of 10 entrepreneurs who lost their job in 2023 managed a structure with fewer than 5 employees. Entrepreneurs at the head of a structure of 6 to 9 employees suffered the largest increase, 51,3% over one year, or 2.571 entrepreneurs affected.

22.117 SARL managers and 21.516 SAS managers were impacted by the loss of their activity.

These increases, of 28,4% and 43,9% respectively compared to last year, are explained in particular by the increase in business creation under the SAS regime. Artisan-traders, having suffered the full brunt of inflation in 2023, 4.495 found themselves unemployed, a category which represents 10% of the total and which is increasing by 32,5%. Consequently, more than 9 out of 10 entrepreneurs who lost their jobs ran a commercial company.

Nearly 8 entrepreneurs out of 10 affected (22.924 women and men) were at the head of a company whose turnover was less than 500.000 euros, confirming the greater vulnerability of small structures. Conversely, only 429 business leaders declared a turnover greater than 5 million euros.

The figures reveal that even long-established structures are vulnerable due to economic stress. Entrepreneurs are feeling the full brunt of the effects of the economic situation and are unable to generate enough income to honor their debts. In 2023, managers who lost their activity were at the head of a company created on average 9 years ago.

Nearly a third of job losses are concentrated in the construction and catering sectors

Business leaders working in the construction sector are experiencing great difficulties: 12.071 men and women affected, an increase of 40,2%. Real estate agencies recorded the worst trend (767 business leaders; +103,4%). All construction activities are also suffering and alone account for 10.219 job losses.

Insurance and financial activities which include a high proportion of brokers in the real estate sector show an increase of 47,3% or 548 business leaders.

Inflation weighs on household consumption patterns, which impacts trade. Activities related to textiles and clothing are hard hit: 1.015 entrepreneurs operating in the retail trade (+ 52,4%) and 170 in the wholesale trade (+ 68,3%) are affected.

In the accommodation, catering and drinking establishment sector, 6 women and men found themselves unemployed in 964. Catering activities concentrate more than three-quarters of the impacted business leaders in the sector.

The agricultural sector presents the lowest increase (+10,3%) of all sectors of activity. In detail, hunters, fishermen, forestry professions (-4,9%) as well as breeders (-2,8%) even recorded a decline in job losses for business leaders.

For Anthony Streicher: “Certain sectors such as construction should see their activity pick up again, but the year 2024 promises to be just as delicate and should lead us to question the future of these men and women. It is now a necessity, to preserve the economy, we must first think about protecting all those who create our wealth and our jobs in our territories. »

For Frédéric Barth, CEO of Altares: “In 2023, the slowdown in the economy was confirmed in France as in Europe, further weakening companies that are sometimes struggling to repay debt that has become too heavy. The number of failures increased by 36%, a strong but not surprising trend after the Covid period. Very small businesses are the most numerous. These VSEs are generally family structures that have participated for several years in driving the local economy. Sometimes in fragile financial health, they have had to deal with deteriorating cash flow for several months, leading more and more managers to have to seek support from the court. Growth is expected to be weak for 2024 and corporate defaults more numerous than in 2023. Anticipation of risks will remain decisive. »

Business leaders throughout the country in a fragile situation

Île-de-France - the country's leading economic region - is one of the most affected territories, after being relatively spared in 2022, with 11.359 business leaders unemployed in 2023 (+ 36,7%). This represents almost a quarter of job losses in France.

The increase in job losses in Auvergne-Rhône-Alpes (6.359; + 38,7%) and Occitanie (4.924; + 38,7%) is higher than the national average. In Burgundy-Franche-Comté as well as in Nouvelle-Aquitaine, the number of entrepreneurs in a situation of “unemployment” increased by 35,5% (1.809 and 4.499 respectively).

While Hauts-de-France showed a severe deterioration in 2022 (+ 73,3%), the territory recorded the lowest change this year (+ 19% or 4.055 business leaders impacted).

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.