France: Disappointing retention rates for new employment contract

In February 2007, the French government published a report on the first full year’s experience of an employment contract (contrat nouvelle embauche, CNE) designed for new starters, which was introduced in August 2005 with the aim of boosting employment in smaller companies. The results of the study are seen as disappointing: over one-third of workers hired on these contracts leave their jobs during the first six months; and, after a year, less than half are still in their posts.