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French unemployment rate finally drops: Report

After nine straight months of increases the unemployment rate in France dropped in August, offering the first potentially good news for the country's historically unpopular leader, according to media reports.

French unemployment rate finally drops: Report
France had 11,000 fewer job seekers last month, reversing a nine-month trend. Photo: Job seekers photo: Shutterstock

After the insults, failures and humiliations that have become all too common for France's president these past months, there appeared to be some good news on Wednesday for François Hollande.

According to unemployment figures leaked to France Television, the number of jobless fell by 11,000 in August, which is the first decrease since October 2013.

After the news broke the Ministry of Finance refused to confirm or deny the numbers, which were due to be officially released at 6pm.

It likely took quite a bit of self-control for a government to keep quiet about good news after so much bad news.

From the minister who publicly badmouth Hollande's economic strategy and prompted a cabinet reshuffle to the tell-all memoir from the president's ex that accused the Socialist of secretly despising poor people, it's been a rough summer. 

But the historically high unemployment rate, with some 3.4 million people out of work, and near zero growth for the French economy have been the true threats to Hollande and his ability to govern the country.

Hollande famously promised to reverse the rising trend of joblessness by the end of 2013, yet the rate has climbed through 2014.

This news comes the same day as France's corporate bosses unveiled their proposals to fix the country's economy, drawing groans and outrage from labour leaders. 

The CEOs believe scrapping two public holidays and loosen the 35-hour week, and a few other changed, would give France the boost it needs.

In the proposal to create one million jobs, which has already been attacked as a "provocation" by labour unions, the MEDEF business group called for a "debate without taboos" over France's "outdated" social model.

"Getting rid of two public holidays per year (out of 11) would extend the average annual working year by 1.2 days, which represents 0.9 percent of gross domestic product and 100,000 extra jobs," MEDEF said.

The group also called for a "revision of the principle that the 35 hours had to be applied to all companies," saying sectoral-wide agreements could be reached for parts of the economy that wanted to opt out.

Unions hit back immediately, with the leader of the FO union, Jean-Claude Mailly, describing the proposals as "unacceptable.

In a bid to pep up the eurozone's second-largest economy, Hollande has proposed a "Responsibility Pact" between government and business.

The proposal, also unpopular with the political left, would see business winning 40 billion euros ($52 billion) in tax breaks in return for a pledge to create jobs over three years.

With France's public deficit ballooning, Hollande plans to finance this with €50 billion in public spending cuts. 

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ECONOMY

Warning: 6 of the most common scams in France to watch out for

From computer hacking to phone calls, a new report reveals that scams and frauds are unfortunately on the rise in France and the criminals are getting more sophisticated - here are some of the most common frauds to be aware of.

Warning: 6 of the most common scams in France to watch out for

France’s fraud and financial crime watchdog, Tracfin, has published its annual report, indicating that fraudulent activity has become both more frequent and more evolved in the last year.

The report highlighted the most significant forms of fraud tracked by the watchdog. In particular, it found that CPF (Compte Personnel de Formation) scams represented a significant proportion of the fraudulent activity registered this year. 

These are the scams the report highlighted:

The CPF scam: The Compte Personnel de Formation is available to all employees in France. Essentially, they are given access to money each year for free professional training (€800 for unskilled workers, €500 for full-time, skilled workers).

This is a real, government-backed scheme with a genuine website and app – it’s particularly useful for foreigners in France because the money can be used for French classes. Here’s how it works.

Unfortunately, however, the name is frequently used by scammers and Tracfin director Guillaume Valette-Valla warned that these scams have become more professional, often now involving transnational criminal organisations, particularly those located outside the EU, as well as shell companies that exist to siphon off the public money.

A lot of these scams involve SMS messages and phone calls warning people that they would lose their allowance and urging them to sign up to training courses have become increasingly frequent. These messages often contain fraudulent links asking recipients to enter their personal details onto dodgy websites.

The presence of CPF shell companies dramatically increased in 2021, according to the report. Tracfin received 116 reports of suspicion of shell companies, which is a significant increase from the 10 reported in 2020. 

For CPF fraud overall, the scams racked in accounted for over €43.2 million compared to €7.8 million a year earlier.

READ MORE: Beyond the scams: How to use France’s €500 training budget

The carte vitale scam – if you live in France your carte vitale is a vital document, allowing you to access publicly funded healthcare.

An increasingly common scam is sending a text message or email telling a person that their carte vitale is about to expire, and to click on the link and enter their details to keep it active. This is a scam, the carte vitale does not expire. If you need to make any changes to your card or request a new one if you have lost of stolen it, use your online Ameli account or visit your local CPAM office.

Driving scams – summer is the time of year when thousands of people – both locals and tourists – take to the roads for a trip away, and scammers often prey on drivers.

Some scammers operate at service stations, approaching non-French drivers and spinning them a sob story to try and extort money, while others operate insurance scams by pretending that you have damaged their car. There are also sporadic reports of ‘fake cops’ who try to issue on-the-spot cash fines to cars with foreign number plates.

Driving in France: The common scams thieves try on foreign motorists

Postal scams – it’s a very common experience to get a message from La Poste or a parcel courier telling you that you were out when they tried to deliver a package. Usually you will just need to arrange another time or head to the post office, but beware of text messages or emails telling you that there are outstanding charges for a parcel, with a link to enter your card details.

Couriers do not operate like this and if there are any outstanding postage or customs charges, you pay them in person not via a link in an email or SMS.

Ransomware attacks – France also saw a rise in ransomware attacks – particularly those targeting small businesses.

In 2021, the French National Agency for Information Systems Security (ANSSI) handled 203 ransomware attacks, compared to 192 in 2020 and 69 in 2019. This represents an increase of 194 percent increase in incidents handled in two years. These attacks were predominantly (over 52 percent) targeted at very small, small and medium-sized businesses.

Ransomware attacks are on the rise for two reasons: a lack of digital literacy and security, and an increased specialisation and professionalisation of the criminal ecosystem.

Fraud on government schemes: Tracfin also noted a rise in fraudulent declarations for government schemes, particularly those made available as emergency responses to the Covid-19 crisis.

These were mostly represented by misuse of compensation for short-time work, emergency aid for companies, self-employed people and business owners, and state-guaranteed loans.

Looking forward – the report also warned how NFTs (Non-fungible tokens) could constitute an additional fraud and cybersecurity risk for people across the country.

So far, Tracfin has received reports of scams involving NFTs whose value has been artificially increased (“pump and dump”), NFTs copying or plagiarizing original works without having the copyright or simply fake NFTs that disappear once they are downloaded from a fraudulent website. The watchdog also highlighted that NFTs could eventually be used for tax fraud. 

On top of tracking scams within France, Tracfin was also involved in tracking down the assets of Russian oligarchs after sanctions against Moscow went into place following the invasion of Ukraine, estimating that €1.18 billion worth of financial and non-financial assets have been frozen in France since the beginning of the conflict.

If you are contacted by a company and you are not sure if it is genuine, the French government has compiled a ‘blacklist’ of dodgy companies that frequently try and defraud people – you can find it here.

If you think you may have fallen victim to a scam, particularly if you have shared your banking information, the first step is to contact your bank. You can learn more about what to do in this scenario, HERE

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