Reaction: Youth Unemployment
The youth employment law that allowed employers to fire workers without any reason has been scrapped by President Jacques Chirac. Millions of students and union workers had taken off to the streets against the law.
Now Chirac says that government will introduce other measures to tackle the double digit inflation in France. The measures proposed in the parliament includes offering state support for employers hiring young people who face the most difficulties in gaining access to the labor market. This I think will be more effective to combat the job rigidity, but might have some backlash where the employers might be too dependent on the state support. The students and unions have shown appreciation to these new measures.

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