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Home page> Studies> Economic challenges in Ile-de-France

Today, the ability to innovate is a decisive advantage for the future.- Photo : © Doutre (Caroline) IAU îdF, BaSoH

Seven cities established a co-operation charter for the development of the area around the Ourcq Canal.- Photo : © Loudier (Céline), IAU îdF

Work pace and hours have significantly changed over the last few decades giving way to more flexibility.- Photo : © Lacombe (Matthias), IAU îdF

Early in the decade, there were significant disparities in unemployment levels among communes in Ile-de-France : in the last recent years geographic disparities increased.- Photo : © Degremont (Cécile), IAU îdF

Roissy Charles de Gaulle Airport is an important business and employment zone, with 50,000 jobs on the airport platform alone, and nearly 500 companies.- Photo : © Doutre (Caroline) IAU îdF, BaSoH

Economic challenges in Ile-de-France . Cahiers n° 124


September 1999

In the framework of today’s economic context, employment, the reduction of unemployment and the acquisition of essential skills are among the primary concerns of Ile-de-France residents.

There are some shady areas in the economy of Ile-de-France

There is one conclusion to be drawn as the 1990s come to an end: the economic situation of Ile-de-France is less certain today than it has been in previous decades: difficulties in creating sustainable jobs and declining sectors such as technological research, finance and defence. This slow-down is confirmed in the Eurostat statistics, where the dynamism of the region since the early 1990s was not as well-oriented as that of Randstad, Frankfurt or London. Its main difficulty lies in unemployment, notably among the young.

An essential characteristic of the system of production in Ile-de-France is its extreme concentration

Today, Ile-de-France is a highly productive region with 550,000 companies in various fields such as industry, commerce and services. Its tertiary sector continues to develop: in 1998, over 80% of jobs were in the tertiary sector. Nearly 7 jobs in 10 are located in Paris and the three departments in the inner suburbs. An essential characteristic of the system of production in Ile-de-France, in relation to space, is its extreme concentration.

The economic growth observed in certain Ile-de-France areas is based on structural elements

Over the last two decades industrial companies have shut down in the region, which represents a loss of 500,000 jobs. If, although at first glance the core may not seem to have changed much, deep transformations have taken place. The number of Ile-de-France jobs located in Paris has gone down from 41.1% in 1979 to 32.4% in 1998, while the weight of the departments in the outer suburbs has risen from 23.3% to 31.5%. The economic growth observed in certain Ile-de-France areas is based on structural elements likely to have a leverage effect on economic development on a local level.

Unemployment and business locations in Ile-de-France are revealing increasing disparities

Early in the decade, there were significant disparities in unemployment levels among communes in Ile-de-France. The highest levels were concentrated in the north-east quarter of the centre of Ile-de-France. Unemployment in Ile-de-France has increased considerably since then. The map of executive and non-executive job seekers recalls the social make-up of communes in Ile-de-France. Can we permit a tendency toward coexistence of various economic areas with, on the one hand “winning” territories – attractive due to their easy access, a network of companies and quality services – and, on the other hand “loser” territories- activities on the decline, few services and occasionally confronted with significant social problems?

Defining a common economic development strategy in Ile-de-France

Six thousand or so development agencies are promoting their economic local areas. Ile-de-France benefits from many assets to attract investors and international companies but other metropolises have been able to better define a strategy based on strong communication. Moreover, with the implementation of the Euro, costs will be immediately visible that will be disadvantageous for less competitive regions. Ile-de-France must take into account its particular situation, which is distinguished by many economic actors. Defining a common economic development strategy in Ile-de-France would reinforce the actions of various actors.

Factors such as social cohesion, standards of living, security and the quality of the environment – with comparable economic assets considered – will mark the differences between metropolises.

Others studies in the same domain :

Economic Development

Benchmarks

  • Surface area: 12,012 sq km (4,638 sq mi), 8 départements, 1,281 municipalités.    
  • Population : 10,933,000 inhabitants. Population density: 910 (inhabitants/sq. km)·    
  • GDP in 1996: FF2,290 billion
  • 5,372,030 jobs in 1998. Unemployment rate: 10%
  • Exports 1998: FF347 billion 
  • Imports 1998: FF497 billion
  • 554,900 number of businesses in 1998
  • Business creations in 1998: 62,630
  • Business closures in 1998: 12,000
  • Airport traffic (passengers) in 1998: 63,626,000

Working population by socio-professional category in Ile-de-France in 1998

  • Employees: 1,421,300
  • Senior executives and intellectual professions: 1,138,160
  • Intermediary professions: 1,130,200
  • Working-class employees: 811,900
  • Farmers, artisans, tradesmen, business managers: 267,900

Proportion of part-time working population in Ile-de-France in 1998

  • Employees: 19.5% (of which Women: 23.8%)
  • Intermediary professions: 18.5% (of which Women: 11%)
  • Working class employees: 9.9%(of which Women: 34.2%)
  • Executives: 5.9% (of which Women: 11.6%)

Private tertiary activities that created jobs in Ile-de-France between 1992-1997

  • Services provided mainly to companies: +85,414
  • Recreational, cultural and sports activities: +27,554
  • Computer activities: +23,124
  • Health and social services: +13,086
  • Post and Telecommunications: +10,884
  • Hotels and restaurants: +10,735
  • Community activities: +5,746
  • Retail commerce, repair of domestic appliances: +5,577
  • Land transport: +4,454
  • Auxiliary insurance financiers: +2,968

Office buildings in Ile-de-France in 1999

42.3 million sq. m. Rate of occupancy: 93%

Tourist activity in Ile-de-France in 1998

  • 36 million visitors
  • turnover: FF220 billion
  • 250,000 direct jobs
  • Trade fairs and show: 1,816 events (356 of which are trade fairs that generated a turnover of FF1.28 billion i.e. a 6.6% rise compared to 1995).

Glossary

Insee National Institute of Statistics and Economic Studies