France's bet to create 500,000 jobs

PARIS, Feb. 17 (UPI) -- The French government unveiled measures Wednesday to stimulate the economy and to tackle its staggering unemployment rate by reviving domestic services.

Jean-Louis Borloo, the labor and social affairs minister, said the government wants to facilitate the creation of up to 500,000 jobs over the next three years.

The sector of domestic services, such as baby-sitting, gardening and help for the elderly, employs more than 1.3 million people, according to the French government.

Borloo said the market would continue to grow strongly as the population aged, forecasting that the sector could eventually sustain up to 3.5 million jobs.

To encourage job creation, the plan includes tax breaks for employers and welfare benefits and training for employees.

The government will also issue subsidized vouchers to big companies and institutions, which employees can use to pay for domestic services.

Some trade union leaders have criticized the government's plans to help create low-paying "McJobs." But some labor market economists argue it is better to give the long-term unemployed the opportunity to find a job and provide additional state income support if needed.