In 2024, executive unemployment surged to 60,852, the highest since 2015, driven by business closures in construction, real estate, and transportation. An 18% increase in job losses among business leaders, particularly in small enterprises, reflects economic pressures and halted state aids post-pandemic. Regions like Île-de-France and Normandy saw executive unemployment rise over 25%. Many affected executives lack access to unemployment insurance, reigniting discussions on mandatory coverage as business failures continue to climb.
The Alarming Surge in Executive Unemployment
Recent statistics reveal a shocking reality: in 2024, a staggering 60,852 business leaders found themselves unemployed, marking the highest level of executive job losses since 2015. This drastic increase is closely tied to a wave of business closures, particularly affecting the construction, real estate, and transportation sectors. Beneath these numbers lies a more distressing truth; many entrepreneurs, lacking social support and safety nets, are left without resources, with some even resorting to sleeping in their vehicles. This dire situation reignites the crucial discussion surrounding unemployment insurance for executives.
Key Insights on Rising Executive Job Losses
According to the latest report from the Observatory of Entrepreneur Employment, conducted by the GSC association alongside Altares, there has been an 18% rise in job losses among business leaders in just one year. This trend is particularly pronounced within very small and medium-sized enterprises (TPE and PME), which have been severely impacted by economic pressures and tighter credit access.
The sectors most affected include:
- Real estate and real estate agencies: +34.7%
- Transportation and logistics: +29.3%
- Construction and building: +23.7%
- Crafts and local businesses: +18.3%
Regions facing the highest increases in executive unemployment include:
- Île-de-France
- Normandy
- Pays de la Loire
In these areas, executive unemployment has surged by over 25% in just one year.
So, what has led to this wave of job losses among entrepreneurs? A combination of factors contributes to this troubling trend. Notably, the aftermath of the Covid-19 pandemic has played a significant role. Between 2020 and 2022, various state aids, such as state-guaranteed loans (PGE) and tax deferrals, helped many vulnerable businesses stay afloat. However, with the cessation of these measures in 2023-2024, numerous companies faced a harsh reality check, resulting in a surge of failures. The current economic landscape, characterized by persistent inflation and rising interest rates, has compounded these challenges, making borrowing costlier and limiting companies’ financing options.
Additionally, the age of the businesses affected also contributes to this spike in job losses. A significant portion of the impacted executives managed companies that were over ten years old, and those over 60 years old experienced a notable 33.2% increase in job losses.
Unfortunately, many dismissed business leaders are not eligible for the general unemployment insurance system. A mere 1% have opted for private insurance, often due to a lack of information or concerns about the monthly cost (approximately €70-80).
This ongoing crisis reignites a long-standing debate: should unemployment insurance be mandatory for business leaders? Currently, participation in the Social Guarantee for Business Leaders (GSC) remains voluntary. However, employer organizations such as Medef, CPME, and U2P advocate for enhanced awareness among entrepreneurs regarding these protections.
As the trend of business failures continues to rise, with a 17% increase in 2024 resulting in 67,830 recorded bankruptcies, the situation may deteriorate further in 2025 if economic conditions do not improve.