This article is from the source 'nytimes' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.nytimes.com/2020/04/01/business/france-coronavirus-unemployment.html
The article has changed 17 times. There is an RSS feed of changes available.
| Version 1 | Version 2 |
|---|---|
| France Tries Limiting Joblessness to Confront Coronavirus Recession | France Tries Limiting Joblessness to Confront Coronavirus Recession |
| (about 13 hours later) | |
| PARIS — When France started shutting down a few weeks ago as the coronavirus marched relentlessly into the country, Dominique Paul feared disaster. His family’s white-glove catering company, Groupe Butard, halted operations, putting 190 jobs at risk. | PARIS — When France started shutting down a few weeks ago as the coronavirus marched relentlessly into the country, Dominique Paul feared disaster. His family’s white-glove catering company, Groupe Butard, halted operations, putting 190 jobs at risk. |
| Edward Arkwright, the director general of Aéroports de Paris, the Paris airport operator, weighed how to preserve over 140,000 jobs when a freeze on most global airline traffic caused activity to nose-dive 90 percent in a few head-spinning days. | Edward Arkwright, the director general of Aéroports de Paris, the Paris airport operator, weighed how to preserve over 140,000 jobs when a freeze on most global airline traffic caused activity to nose-dive 90 percent in a few head-spinning days. |
| The future of both businesses, and hundreds of thousands more around France, spiraled into uncertainty. Instead of sinking, though, they are being thrown lifelines as the French government deploys a targeted plan aimed at sheltering companies and keeping every worker possible employed. | The future of both businesses, and hundreds of thousands more around France, spiraled into uncertainty. Instead of sinking, though, they are being thrown lifelines as the French government deploys a targeted plan aimed at sheltering companies and keeping every worker possible employed. |
| “We’re using the government’s whole toolbox to get through this crisis,” Mr. Paul said, eyeing the company’s empty Armenonville Pavillon on the edge of Paris, where just weeks ago chefs and waiters served delicacies like scallop carpaccio for glittering events. “Otherwise, we wouldn’t be able to keep up.” | “We’re using the government’s whole toolbox to get through this crisis,” Mr. Paul said, eyeing the company’s empty Armenonville Pavillon on the edge of Paris, where just weeks ago chefs and waiters served delicacies like scallop carpaccio for glittering events. “Otherwise, we wouldn’t be able to keep up.” |
| As the coronavirus wallops the world’s economies, France is rapidly emerging as a test case of whether a country can hasten the recovery from a recession by protecting businesses from going under in the first place, and avoiding mass joblessness. | As the coronavirus wallops the world’s economies, France is rapidly emerging as a test case of whether a country can hasten the recovery from a recession by protecting businesses from going under in the first place, and avoiding mass joblessness. |
| In the United States, the coronavirus has already provoked millions of layoffs. While the $2 trillion rescue package signed by President Trump sends extensive relief to American workers and businesses, France and other European Union countries are deploying a more encompassing state-led approach in the event that the epidemic takes months, rather than weeks, to contain. | In the United States, the coronavirus has already provoked millions of layoffs. While the $2 trillion rescue package signed by President Trump sends extensive relief to American workers and businesses, France and other European Union countries are deploying a more encompassing state-led approach in the event that the epidemic takes months, rather than weeks, to contain. |
| “There’s a very different strategy in Europe than in the United States about how to manage this recession,” said Patrick Artus, chief economist of Paris-based Natixis Bank. “The idea is to have no layoffs or company closures, so that when the coronavirus is finally under control the economy can start right back up.” | “There’s a very different strategy in Europe than in the United States about how to manage this recession,” said Patrick Artus, chief economist of Paris-based Natixis Bank. “The idea is to have no layoffs or company closures, so that when the coronavirus is finally under control the economy can start right back up.” |
| France is hoping to learn a lesson from the 2008 financial crisis, when it didn’t take aggressive steps to support workers and businesses. Unemployment soon jumped to around 10 percent and stayed high for half a decade. By contrast, the rise in joblessness in Germany — which kept companies from collapsing by subsidizing furloughs in a system known as Kurzarbeitergeld, or short-time work — lasted less than a year before falling steadily. | France is hoping to learn a lesson from the 2008 financial crisis, when it didn’t take aggressive steps to support workers and businesses. Unemployment soon jumped to around 10 percent and stayed high for half a decade. By contrast, the rise in joblessness in Germany — which kept companies from collapsing by subsidizing furloughs in a system known as Kurzarbeitergeld, or short-time work — lasted less than a year before falling steadily. |
| “France has decided it’s not going to make the same mistake with the coronavirus,” said Simon Tilford, director of the Forum New Economy, a research institution in Berlin. “That approach is going to be much less devastating.” | “France has decided it’s not going to make the same mistake with the coronavirus,” said Simon Tilford, director of the Forum New Economy, a research institution in Berlin. “That approach is going to be much less devastating.” |
| Austria, Denmark and other northern countries have similar policies, and Britain announced last week that it would do the same. And on Wednesday, the European Commission’s president, Ursula von der Leyen, said governments would join to support short-time work so that “more people will keep their job” during the current crisis. | Austria, Denmark and other northern countries have similar policies, and Britain announced last week that it would do the same. And on Wednesday, the European Commission’s president, Ursula von der Leyen, said governments would join to support short-time work so that “more people will keep their job” during the current crisis. |
| In France, the government is spending 45 billion euros ($50 billion) to pay businesses not to lay off workers. Deadlines for taxes and loan payments are delayed. Another €300 billion in state-guaranteed loans are being extended to any struggling company that needs them. | In France, the government is spending 45 billion euros ($50 billion) to pay businesses not to lay off workers. Deadlines for taxes and loan payments are delayed. Another €300 billion in state-guaranteed loans are being extended to any struggling company that needs them. |
| Over 337,000 businesses have already put 3.6 million employees on paid furlough to be reimbursed by the state, the Labor Ministry said Wednesday. Officials expect the numbers to more than double as it receives “several thousand requests per minute.” | Over 337,000 businesses have already put 3.6 million employees on paid furlough to be reimbursed by the state, the Labor Ministry said Wednesday. Officials expect the numbers to more than double as it receives “several thousand requests per minute.” |
| The plan isn’t without risks. European leaders are wary of relaunching the economy before the epidemic is proved to be under control. The tsunami of fiscal support by France and its neighbors — over €2 trillion in spending and loan guarantees combined — can be sustained only a few months, economists say. | The plan isn’t without risks. European leaders are wary of relaunching the economy before the epidemic is proved to be under control. The tsunami of fiscal support by France and its neighbors — over €2 trillion in spending and loan guarantees combined — can be sustained only a few months, economists say. |
| The risk extends to the businesses as well, which must continue to pay one-fifth of the salaries of employees who aren’t working. If the economy doesn’t rebound by autumn, companies say, they may yet be forced to revert to layoffs. | The risk extends to the businesses as well, which must continue to pay one-fifth of the salaries of employees who aren’t working. If the economy doesn’t rebound by autumn, companies say, they may yet be forced to revert to layoffs. |
| Mr. Paul of Groupe Butard is betting things won’t get that bad, despite fearing the worst when orders were canceled en masse in early March. Events organized by corporate giants like Schneider Electric and the French Federation of Rugby were called off, shrinking his expected monthly revenue of €4 million to €500,000 and leaving Dominique Julo, the company’s events director, with little to plan for. | Mr. Paul of Groupe Butard is betting things won’t get that bad, despite fearing the worst when orders were canceled en masse in early March. Events organized by corporate giants like Schneider Electric and the French Federation of Rugby were called off, shrinking his expected monthly revenue of €4 million to €500,000 and leaving Dominique Julo, the company’s events director, with little to plan for. |
| Since then, Mr. Paul has used all the financial backstops made available by the French government, even delays of payments for electricity bills and rent on Groupe Butard’s offices and its hulking food preparation facilities outside Paris. | Since then, Mr. Paul has used all the financial backstops made available by the French government, even delays of payments for electricity bills and rent on Groupe Butard’s offices and its hulking food preparation facilities outside Paris. |
| The state will pay him 80 percent of his employees’ salaries to keep them on payroll. Although Mr. Paul is still waiting for the money, because of a backlog in the 10-day reimbursement period promised by the government, the combined financial relief means the company “will be ready to rebound once the crisis is over,” he said. | The state will pay him 80 percent of his employees’ salaries to keep them on payroll. Although Mr. Paul is still waiting for the money, because of a backlog in the 10-day reimbursement period promised by the government, the combined financial relief means the company “will be ready to rebound once the crisis is over,” he said. |
| Use of Germany’s paid furlough program is also soaring. Nearly 500,000 firms filed for support in March, the government said Tuesday, up from fewer than 2,000 in February. Among them are Daimler, Volkswagen, Lufthansa and the company that manages Frankfurt Airport, where air traffic has plunged 90 percent. | Use of Germany’s paid furlough program is also soaring. Nearly 500,000 firms filed for support in March, the government said Tuesday, up from fewer than 2,000 in February. Among them are Daimler, Volkswagen, Lufthansa and the company that manages Frankfurt Airport, where air traffic has plunged 90 percent. |
| A similar collapse in activity forced Mr. Arkwright, the director general of Aéroports de Paris, to put 80 percent of the 6,000 administrative employees and 135,000 baggage handlers, security agents and other workers on paid furlough after Orly Airport and all but two terminals at Charles de Gaulle Airport, the second-busiest in Europe, closed. | A similar collapse in activity forced Mr. Arkwright, the director general of Aéroports de Paris, to put 80 percent of the 6,000 administrative employees and 135,000 baggage handlers, security agents and other workers on paid furlough after Orly Airport and all but two terminals at Charles de Gaulle Airport, the second-busiest in Europe, closed. |
| He faced extraordinary circumstances as losses ballooned to an estimated €1.3 billion. Adding to the chaos, the chief executive of Aéroports de Paris, Augustin de Romanet, tested positive for the virus, leaving Mr. Arkwright to manage on an emergency basis as two-thirds of the airport company’s board also self-quarantined. All the executives emerged in good health. | He faced extraordinary circumstances as losses ballooned to an estimated €1.3 billion. Adding to the chaos, the chief executive of Aéroports de Paris, Augustin de Romanet, tested positive for the virus, leaving Mr. Arkwright to manage on an emergency basis as two-thirds of the airport company’s board also self-quarantined. All the executives emerged in good health. |
| Aéroports de Paris, which is half owned by the state and is slated for privatization this year, is saving €25 million a month from government subsidies for paid furloughs, Mr. Arkwright said. The state has asked the company not to pay out an annual dividend. | Aéroports de Paris, which is half owned by the state and is slated for privatization this year, is saving €25 million a month from government subsidies for paid furloughs, Mr. Arkwright said. The state has asked the company not to pay out an annual dividend. |
| Updated June 2, 2020 | |
| Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission. | |
| Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. | Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home. |
| States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said. | More than 40 million people — the equivalent of 1 in 4 U.S. workers — have filed for unemployment benefits since the pandemic took hold. One in five who were working in February reported losing a job or being furloughed in March or the beginning of April, data from a Federal Reserve survey released on May 14 showed, and that pain was highly concentrated among low earners. Fully 39 percent of former workers living in a household earning $40,000 or less lost work, compared with 13 percent in those making more than $100,000, a Fed official said. |
| Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. | Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications. |
| The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. | The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing. |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
| “The advantage of this approach is that we can start up again literally from one day to the next,” Mr. Arkwright said. “I can call you and say, ‘Come in tomorrow.’ But if you go into unemployment, it’s not sure you’d be called in for a job. And we would lose people with valuable skills.” | “The advantage of this approach is that we can start up again literally from one day to the next,” Mr. Arkwright said. “I can call you and say, ‘Come in tomorrow.’ But if you go into unemployment, it’s not sure you’d be called in for a job. And we would lose people with valuable skills.” |
| Allowing unemployment to balloon would also cost European governments huge sums, because of the generous benefits offered to fired workers. In Germany, for instance, someone who is let go after 12 months can still receive 60 percent of his or her salary for the next nine; in France, unemployment benefits last up to two years. | Allowing unemployment to balloon would also cost European governments huge sums, because of the generous benefits offered to fired workers. In Germany, for instance, someone who is let go after 12 months can still receive 60 percent of his or her salary for the next nine; in France, unemployment benefits last up to two years. |
| “Laying people off actually costs more,” Mr. Arkwright said. | “Laying people off actually costs more,” Mr. Arkwright said. |
| And people who can keep their jobs “are less unhappy and shocked than people who have been fired,” said Holger Schmieding, chief economist at Berenberg Bank in London. “They are less likely to dramatically cut their consumption. That limits the overall economic damage.” | And people who can keep their jobs “are less unhappy and shocked than people who have been fired,” said Holger Schmieding, chief economist at Berenberg Bank in London. “They are less likely to dramatically cut their consumption. That limits the overall economic damage.” |
| In that sense, Mr. Schmieding added, governments paying companies to keep people furloughed “achieve a bigger impact for less money than supporting people who have lost their jobs.” The United States, which will now extend jobless benefits and make one-time cash payments to support workers, is effectively “paying the price for its inadequate welfare net,” he said. | In that sense, Mr. Schmieding added, governments paying companies to keep people furloughed “achieve a bigger impact for less money than supporting people who have lost their jobs.” The United States, which will now extend jobless benefits and make one-time cash payments to support workers, is effectively “paying the price for its inadequate welfare net,” he said. |
| Mr. Paul of Groupe Butard said the French government’s protectionist playbook could sometimes be stifling for business. But safeguarding the economy and helping companies avoid throwing workers into unemployment would leave French society better off than others once the coronavirus epidemic was contained, he said. | Mr. Paul of Groupe Butard said the French government’s protectionist playbook could sometimes be stifling for business. But safeguarding the economy and helping companies avoid throwing workers into unemployment would leave French society better off than others once the coronavirus epidemic was contained, he said. |
| “The French system can be cumbersome,” he said. “But it is incredibly effective in times like these.” | “The French system can be cumbersome,” he said. “But it is incredibly effective in times like these.” |
| Constant Méheut contributed reporting from Paris, and Jack Ewing from Frankfurt. | Constant Méheut contributed reporting from Paris, and Jack Ewing from Frankfurt. |