Non-compete and related clauses are fairly common in France. According to employers, between 19% and 27% of private-sector employees are currently bound by a non-compete clause compared to an average of 20% to 30% across the OECD countries covered by the survey. Results from the employee survey confirm a high prevalence: 20% of workers report being bound by a non-compete clause, with an additional 21% who believe they “probably” are, compared to an average of 15% and 21% across the OECD countries covered by the survey. In many countries, including France, the higher incidence reported by employees is essentially driven by higher uncertainty among employees than employers, reflected in the high share of “probably yes” answers.
France - Economic Snapshot
This snapshot offers an overview of France's economic trends and prospects, including GDP and inflation projections, growth prospects, and structural reform priorities, drawing from the OECD Economic Survey, Economic Outlook, and Foundations for Growth and Competitiveness reports.
Key findings on non-compete and related clauses for France, July 2026
Non-compete and related clauses are widespread and their use is rising
Economic Survey of France, June 2026
France has shown resilience to recent global shocks, but GDP per capita growth is lagging that in leading OECD economies. Further increasing the employment of older and younger workers, alongside stronger industrial competitiveness, would enhance France’s growth potential. This calls for more effective innovation policies, increased investment in skills, and lower production taxes. It also requires stronger resilience to supply chain risks, the decarbonation transition, and rapid technological change. Putting the public debt ratio on a clear downward path is another pressing priority. This will require greater spending efficiency and phasing out ineffective tax expenditures, while reducing the most distortive taxes. Two other long-term priorities are the ageing population and the climate transition. Better quality long-term care would benefit from improved working conditions for care workers, and enhanced efficiency through greater targeting and preventive care. Efforts should accelerate to lower greenhouse gas emissions and adapt to climate risks through stronger carbon price signals, targeted support for vulnerable households, and reinforced local adaptation strategies.
SPECIAL FEATURES: PUTTING PUBLIC FINANCES ON A SUSTAINABLE PATH WHILE BOOSTING LONG-TERM GROWTH, ENSURING QUALITY AND EFFICIENT LONG-TERM CARE, SUPPORTING CLIMATE CHANGE MITIGATION AND ADAPTATION, STRENGTHENING INDUSTRIAL COMPETITIVENESS
Further reading:
Economic Outlook: GDP and inflation projections, June 2026
Growth is expected to slow to 0.7% in 2026 and remain weak in 2027, at 0.8%. Economic activity strengthened in the second half of 2025, supported by a pick-up in investment and exports, and a modest recovery in household consumption, but slowed in early 2026. Economic momentum has been disrupted by the evolving conflict in the Middle East. The resulting surge in inflation is eroding purchasing power, weighing on private consumption. Heightened uncertainty is set to dampen business investment. Residential investment should prove more resilient, supported by the earlier rise in building permits, although higher interest rates will continue to weigh on the existing‑homes market.
The fiscal deficit fell from 5.8% of GDP in 2024 to 5.1% of GDP in 2025, outperforming the target of 5.4% of GDP due to better-than-expected revenues, notably corporate taxes, and tight expenditure management. It is projected to reach the government objective of 5% of GDP in 2026 and decline further to 4.6% of GDP in 2027. Risks are high, however, as these projections assume no additional broad-based energy support measures and a gradual recovery in energy production and exports in the Middle East from the second half of 2026. While France is relatively less exposed to the disruption in Middle East exports given its energy mix, further electrification of industry and transport would increase resilience. Growth would be strengthened by measures supporting higher employment of young and older workers, and by tackling productivity bottlenecks through stronger skills, R&D and digital investment.
Foundations for Growth and Competitiveness, April 2026
France’s GDP per capita falls short of top OECD performers, mainly due to lower labour productivity and weaker employment and participation rates. A persistent investment gap, driven by underinvestment in intangible assets despite higher tangible asset investment, also contributes to sluggish performance. The labour productivity gap widened during the pandemic, largely due to widespread labour hoarding.
Boosting productivity and growth requires better use of talent by improving foundational competencies learned in school, reducing educational inequality, enhancing digital skills, and strengthening vocational outcomes. More effective innovation support, lower barriers in services, and reduced taxes on labour would further boost competitiveness and job creation.
Further reading: France
-
The global outlook is becoming increasingly challenging. Substantial increases in barriers to trade and heightened policy uncertainty will have marked adverse effects on growth prospects if they persist. On the assumption that tariff rates as of mid-May are sustained, global GDP growth is projected to slow notably this year and to remain subdued in 2026. Growth could be even weaker if there are additional increases in trade barriers and policy uncertainty. Inflationary pressures could be stronger than expected due to higher trade costs and rising inflation expectations, prompting more restrictive monetary policy and repricing in financial markets. On the upside, a reversal of the recent increase in trade barriers, steps to reduce regulatory burdens or an early resolution of geopolitical conflicts could have positive impacts on global growth. The key policy priorities are to ensure a lasting decline in policy uncertainty, trade tensions and inflation, establish a credible fiscal path to debt sustainability while providing temporary support to those vulnerable to economic shocks, and implement ambitious reforms to strengthen growth prospects and investment.This issue includes an assessment of the global economic situation, a chapter on investment and a chapter summarising developments and providing projections for each individual country. Coverage is provided for all OECD members as well as for selected partner economies.Learn more
-
45 PagesThis study investigates factors favouring a possible "smicardisation" of French workers - the process of an increasing coverage of workers at the minimum wage. First, the minimum wage is relatively high in France compared with other countries, with the result that a large number of workers are close to it. Second, low wages reflect less the characteristics of firms or sectors than the low skills of workers, the resolution of which requires appropriate education and training policies, effective over the long-term. Finally, an analysis of tax and benefit systems highlights the existence of potential low-wage trap mechanisms, which are particularly significant in France compared to other countries. Nevertheless, analysis of individual trajectories shows that it is no more difficult for low-wage workers to climb the wage ladder in France than in the other selected countries.Learn more
-
33 PagesThis paper contributes to a better understanding of the role of bargaining and discrimination in the gender wage gap in France and four other European countries using comprehensive linked employer-employee data. The role of bargaining and discrimination is analysed by focusing on systematic differences in wage-setting practices between men and women in the same firm through the estimation of gender-specific firm wage premia. The paper provides three key insights. First, bargaining and discrimination account for only a small part of the gender wage gap in France. Second, the component of the gender wage gap that can be attributed to bargaining and discrimination is higher in high-wage firms in all countries considered. Third, cross-country differences in the importance of bargaining and discrimination in the gender wage gap reflect both systematic differences in wage-setting practices within firms and imperfections in the product market that generate persistent rents.Learn more
-
137 PagesFrance has faced two significant, successive shocks: the COVID-19 pandemic and the increase in inflation. Emergency government measures were decisive in protecting business, jobs and purchasing power, but at a high fiscal cost. Efforts to reduce public spending will be key to lower government debt. Lifting productivity growth hinges on a wider diffusion of digital technologies, reduced regulatory barriers and stronger innovation.Learn more
-
Succinct, straightforward, and clear, jargon-free, messaging is required here: what are the (global) challenges and what is at stake (for OECD countries) with respect to this granular policy issue (focus)? Keep in mind user perspective logic by signposting the multiple angles/sectors that can be brought to bear on the issue. 180-300 chars (3-6 lines) is ideal.Learn more
