Insee Première · March 2021 · n° 1844

Labour market at a glance in 2020 Employment resists, halo of unemployment increases

In 2020, in the context of the COVID-19 outbreak, the annual employment rate for people aged 15-64 falls by 0.3 point. The employment decrease is sharper in Q2 2020, for low-skilled workers and temporary employees.

Short-time work reached an unprecedented level in 2020: 6.2% of employed people are concerned over the year, and up to 25% during the first lockdown. This has largely limited the employment decrease. On the other hand, the total hours actually worked fell sharply (-7.4% between 2019 and 2020).

The unemployment rate, as defined by the International Labour Office (ILO), fell sharply during the first lockdown. This trompe l’oeil decrease is mainly due to difficulties to actively seek a job during the period. The unemployment rate then increased, before falling again during last quarter, partly for the same reasons. The unemployment rate averages 8.0% in 2020, 0.4 point less than in 2019.

On the other hand, the halo of unemployment increased in 2020. In total, the share of not employed persons wanting to work, whether they are unemployed or in the halo of unemployment, increases sharply in 2020 and recovers its 2018 level.