Social Economy in France Loses Over 10,000 Jobs in 2025 Amid Sector Challenges

The social economy and solidarity sector (ESS) in France experienced a significant setback in 2025, losing a net total of 10,447 jobs, marking a downturn not seen since the pandemic in 2020. The report released in April 2026 by ESS France, led by president Benoît Hamon, highlights that associations faced the largest absolute job losses with 12,305 positions cut, representing a 0.68% decrease in Q4 2025. Mutuals also contracted by 2,465 jobs (1.95% decrease). Conversely, foundations and cooperatives maintained positive job growth, with foundations seeing increases of 2.99% in Q3 and 2.52% in Q4. Job growth was observed in sectors like health (+1.3%), social housing (+0.5%), and commerce (+2%), but arts, entertainment, and social action sectors suffered declines exceeding 3% and 0.1%, respectively.

Regional disparities emerged, with all metropolitan areas reporting job declines, the steepest in Bourgogne-Franche-Comté (-1.1%). However, the overseas departments of Guyane (+3%) and Martinique (+0.8%) bucked the trend with job creation, while Réunion and Guadeloupe endured significant losses. This deterioration correlates with a decrease in public funding for the non-profit sector in 2025, exacerbating challenges within the ESS.

Benoît Hamon emphasized the grave risks these job losses pose to social cohesion and essential services, particularly in social assistance and cultural sectors. He advocated for a national employment strategy aiming to boost the ESS workforce by 20% in three years and called for reserving public contracts for ESS players in critical domains like early childhood and elder care. Originally planned for late 2025, this strategy’s presentation is now delayed until June 2026.

While the broader private lucrative sector saw a modest employment increase of 0.53% in late 2025, the ESS’s contraction underscores pressing concerns. Hamon warned of a challenging 2026 ahead, especially for mutuals, given public finance uncertainties. This alarming trend signals a pivotal moment for France’s social economy, revealing the urgent need for coordinated public and private action to safeguard jobs and vital social services.