Changes in AS/LARS

Real GDP per hour worked (2015 USD $)


Real GDP per person employed (2017 USD $)

https://data.worldbank.org/indicator/SL.GDP.PCAP.EM.KD?end=2019&locations=FR&start=2010 

* It is important to note that, while the trend lines on the first two graphs are incredibly similar, they are not exactly equal because workers may be shorter shifts, but producing the same output (or longer shifts, and producing output). In either of these situations there is an increase/decrease in GDP per hours worked, but not GDP per person employed. 


Unemployment Rate (% of total workforce)



Employment Statistics

"50.5% of economically active 25- to 64-year-olds in France were employed in science and technology and/or were tertiary education graduates, which is higher than the EU-28 average of 46%."

"The number of private-sector researchers rose 30% between 2007 and 2014, as 37,000 high value-added jobs were created."

Population of France (2009-2019)



Migrant Population


Birth Rate



Educational Rankings

 https://worldpopulationreview.com/country-rankings/education-rankings-by-country 


Land and Resources

Extensive agricultural market: "Given its varied geography both in metropolitan Europe and throughout the world, France has an enormous amount of natural resources including coal, iron ore, bauxite, zinc, uranium, antimony, arsenic, gypsum, timber, arable land, fish, gold deposits, petroleum, and clay." 

"France has the largest land area of any Western European nation and lies between the Mediterranean Sea on the southeast and the Bay of Biscay and English Channel to the north and west."

https://www.nationsencyclopedia.com/economies/Europe/France.html#:~:text=France%20has%20the%20largest%20land,3%2C427%20kilometers%20(2%2C130%20miles).

Technologically Advanced



Analysis

As a whole, the collection of data above suggests a shift to the right in France's long run aggregate supply curve/aggregate supply. The increasing productive potential of the country is evident in the upward trend in Real GDP per hours worked, as well as Real GDP per person employed (within the last ten years). This economic growth could likely be attributed to France's growing use of cutting-edge technology, which enables maximum efficiency and advanced analytical processing. France has become a leader in European rankings and ranks fourth place globally when considering online services provided by authorities, telecommunications infrastructure, and population's education level. 

Data from a labor standpoint further suggests a shift to the right in France's LRAS/AS. Both general population and immigrant populations have grown (making for plenty of available workers), while birth rate has experienced a subtle decline (the consequences, of which, will become more apparent in 20-25 years, once that generation enters the work force). While there appears to be a contradiction between 2010-2015 trends in France's unemployment rates and trends in France's GDP per hours worked/GDP, this can be explain by technological advancements which enable higher output by fewer employees. Hence, it appears deindustrialization is not occurring and productive capacity is, in fact, increasing. 

Yet another factor enabling an expansion in production capacity is France's higher education. Not only is the quality of education commendable, but the quantity of educated citizens also surpasses the European average. Educated individuals create a more efficient and high-caliber work force, thus improving the quality of labor. 

France's varied geography provides the country with a diverse and extensive array of natural resources and raw materials as well as vast quantities of land, which supports a shift to the right in LRAS/AS (if of course, these resources are used to support productive capacity). Overall, a shift to the right in France's LRAS/AS outlook is clear due to notable improvement within each factor of production. 






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