Labour-cost determinants in France

In French enterprises with ten or more employees in manufacturing and market services, the average cost of an employee to an employer was €50,850 a year in 2008. Divided by hours actually worked (excluding leave and absences) the hourly cost of labour came to just under €32. It was slightly higher in finance and insurance, where the proportion of management-level workers is larger, and in electricity and gas production and distribution. The cost was lowest in the accommodation and catering sector, which employs a low-skilled labour force and has been granted reductions in social contributions on low wages.