As the nation experiences the fewest births since World War Two, French President Emmanuel Macron has promised a comprehensive reform of parental leave, according to Reuters.
With 678,000 births in 2023, fewer than in 2022 and 20% fewer than in 2020, the decline puts France’s historically strong demographic profile in jeopardy.
France maintains a higher birth rate than its European peers, a trait it credits to incentives for having children plus a strong health and childcare system.
On the other hand, long-term growth prospects of the nation are affected by changes in the labor force participation rate, productivity gains, and demographics.
Macron emphasized the importance of a higher birth rate during a press conference, saying that “France will only be stronger if it revives the birth rate.” Better-paid parental leave is part of the proposed reform, which would allow both parents to spend up to six months with their kids.
Currently, French parents can take an extra year of paid parental leave, which can be renewed, for a maximum of 400 euros per month. Macron emphasized the need to address issues of financial strain and mothers’ prolonged disengagement from the labor market.
In 2023, the average number of children per mother fell to 1.68, a level not seen in developed nations for three decades. This figure is close to the 2.2 needed for population maintenance. This number is also less than the estimated 1.8 births that provided support for a contentious 2023 retirement reform, casting doubt on the reform’s ability to lower the pension deficit.
The COVID-19 pandemic, skyrocketing energy costs, and unprecedented inflation have all damaged household confidence, which has made it difficult for it to rebound from mid-2022 lows, according to INSEE’s monthly survey.
