Rennes Resists Economic Downturn Despite Global Challenges: Audiar Report

This is not a scoop for anyone: the global and national economies have been in better shape. High post-covid inflation followed by the rise in interest rates, all against the backdrop of war in Ukraine, has hampered growth. France’s GDP has decreased from the 3rd quarter of 2023, leading to lower tax revenues for the French budget and future economies. But in this dark context, Rennes did well, noted, at the end of April, Audiar, a local urban and economic research group.

The British capital’s employment area created 5,100 jobs last year. That is a 2.1% gain in the number of private workers over one year. Among the largest cities in France, this is the 4th best progress. And the second lowest unemployment rate, behind Nantes, with a rate of 6%, more than a point lower than the national average. Overall, employment on fixed-term and permanent contracts was maintained compared to 2022.

The economy of Rennes is the result of its good performance in terms of job creation for services, one of its pillars. And especially in the digital sector. It alone accounts for a quarter of private employment gains in 2023, with 1,300 net positions created last year.

Many sectors, against all expectations, have maintained their activity, such as trade, construction and industry. “This allowed the land to be minimally affected by the economic downturn at work,” Audiar emphasizes.

A significant increase in unemployment to be observed

Evaluation which, however, is still mixed. The situation is not the same everywhere in the Rennes basin. Job creation was concentrated in Rennes and the Metropolis while outlying areas suffered the blow. 330 jobs were destroyed there last year, mainly due to a decrease in the use of temporary work (-2.4%). This is an important difference with the pre-health crisis: the peripheral areas were equal, or even better, than the core of the Rennes basin.

But the real downside is to be found in the increase in unemployment. Certainly, the level is still lower than the national level but the increase was significant in 2023 and much more than in the rest of the French territory. The number of job seekers increased by 2.6%, compared to 0.4% in France. In the Rennes region, this increase mainly affects categories A, that is to say people without any activity, those over 50 and long-term unemployed. As a result of this rapid progress, Rennes’ working area has reached the British average, but was traditionally placed one point below.

Part of the explanation no doubt lies in a sharp increase in business failure. In the last quarter of 2023 alone, in Ille-et-Vilaine, 240 collection procedures were opened. Up 61% compared to the same quarter of 2022. In total, almost 1,800 jobs were at risk last year due to serious economic problems in their companies. “But this is only a return to the pre-covid level,” the report reassures us. “The number of procedures opened over this period is similar to 2019 and 2018. ” It remains to be seen whether Rennes’ economic fabric will continue to struggle in 2024: the outlook does not look much better.