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№ 0098 Claim Open Drafted by AI France
Translated automatically from the original (Français). The original is the binding text. Show original

Jean-Pierre Farandou: raising the minimum wage to €1,700 net would destroy more than 230,000 jobs

Jean-Pierre Farandou, Minister of Labour · claimed on Nov 8, 2026 · original source

In an interview with La Tribune Dimanche published on 8 November 2026, Labour Minister Jean-Pierre Farandou stated that raising the minimum wage (smic) to €1,700 net, as demanded by LFI and the PS, "would destroy more than 230,000 jobs". The following day, the government announced a 1.6% increase on 1 December (€1,501.90 net); the minister put the effect of this increase alone at 5,000 to 20,000 jobs, based on a note from the ministry's statistics department that the Prime Minister had promised to present, but which had not been sent to the press on 13 November. Economists' estimates diverge mainly depending on whether employer social-contribution reliefs would or would not follow the minimum wage increase. Publishing the note and the method behind the figure of 230,000 would make it possible to settle the question.

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Estimates from 2024 reach a similar order of magnitude, if the contribution reliefs remain frozen

Quartz France, citing TF1 Info, reports that a 2024 study by the Fondation Ifrap put the number of jobs lost at 240,000 for a minimum wage of €1,600 net (375,000 lost due to labour costs, 135,000 created by demand), and that the OFCE itself obtained about 217,500 jobs lost if the scale of contribution reliefs remained frozen. The article also notes that the ministry did not specify what work the figure of 230,000 is based on.

Quartz Le gouvernement estime qu'un Smic à 1 700 euros coûte 230 000 emplois L'OFCE avance 29 000 emplois perdus pour un Smic à 1 600 euros net, et 217 500 si les allègements de cotisations sont gelés
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Franceinfo: no supporting document, and 34,500 jobs according to the OFCE if the reliefs follow the minimum wage

Franceinfo (13 November) was unable to consult the promised note despite "multiple follow-ups". OFCE economist Eric Heyer, transposing his 2024 calculation to a 15% increase, arrives at "34,500 jobs" destroyed: -390,000 from labour costs, +172,000 from purchasing power and +183,000 thanks to contribution reliefs indexed to the minimum wage. Clément Carbonnier (Paris 1) considers that the models "have a much stronger responsiveness than what is actually observed" and cites the 15% increase in Germany in 2022, which did not produce massive job losses. Gilbert Cette, former chair of the expert group on the minimum wage, on the other hand finds the government's estimate "entirely realistic" and recalls that these reliefs have been frozen since June.

franceinfo VRAI OU FAUX. Une hausse du smic à 1 700 euros entraînerait-elle la destruction de 230 000 emplois, comme l'affirme le gouvernement ? "Une augmentation du smic plus importante aurait, de manière structurelle et structurée, engendré une destruction importante d'emplois", a soutenu le Premier ministre Sébastien Lecornu pour justifier une hausse du salaire minimum limitée à 1,6%.
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