France and its Territories 2021 Edition

This work offers an overview of economic, social and environmental issues at a regional level. Using zoning for studies that were updated in 2020, the work takes stock of geographical disparities in France, the strengths and weaknesses of the different regions and the population's living conditions.

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Paru le :Paru le22/07/2021
Christine Charton, Éric Durieux (INSEE)
La France et ses territoires- July 2021
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Spring 2020 lockdown: economic impact varies by department

Christine Charton, Éric Durieux (INSEE)

In March 2020, owing to the first lockdown related to the spread of the COVID-19 virus, households reduce their expenditure and economic activity slows markedly, with massive use of short-time working.

However, the intensity of these occurrences varies by geographical department. This is partly a function of their economic specialization, as all business sectors are not affected in the same way by the health crisis and measures taken to combat the spread of the epidemic. In departments in the Alps and Pyrenees, the lockdown puts a sudden end to the winter tourist season. The drop in economic activity, measured in the number of paid hours, and the fall in face-to-face credit and debit card transactions are more marked there. Activity also slows considerably in industrial departments where transport equipment manufacturing facilities are based, such as in Haut-Rhin and Doubs (car manufacturing) and Haute-Garonne (aeronautical industry). Conversely, in departments geared more to agriculture and the food processing industry, there is less of a fall in activity, especially as some of them benefit from the presence of people coming to stay there during the lockdown. In response to the fall in activity, temporary work plummets and there is a rise in employment situations where people are not working or only partially (furloughed or short-time working or on leave due to childcare requirements). Permanent employment is relatively well-preserved.

The economy picks up again gradually, as restrictions are lifted. In June, economic activity is still lower than its pre-crisis level, notably in several highly urbanised departments where culture and leisure activities play a more dominant role or where the transport and storage sectors struggle to start up again. Permanent employment also deteriorates in the departments most reliant on tourism.

Following a relative return to normality in the 3rd quarter, the second lockdown from November 2020, with different restrictions from the first lockdown, again weakens the most urban departments and tourist departments, dependent on international customers or reliant on air traffic (Corsica and French overseas territories).

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Paru le :22/07/2021