Observatory of the Parisian economy

A partnership observatory to analyse specific aspects of the Parisian economy and assess the economic impact of the crisis.

Observatory of the Parisian economy © Shutterstock / Apur

Missions
Put in place in 2021, the Observatory’s mission is to analyse specific features of the Parisian economy and assess the economic impact of the crisis on companies in relation to business sectors, employment, job applications and the effects of support measures. It also aims to develop more forward looking thinking on how to accompany the recovery process, anticipate changes in the economy and imagine ways to develop that are a source of inspiration to enhance the future.

The Observatory enables information to be shared regularly among all partners, statistical exercises to be produced, the ongoing effects of the crisis to be measured and in depth thematic analyses to be carried out. The objective is to be able to adapt, coordinate and offer solutions, based on this shared information.

Functioning
The Observatory is based on a multitude of data sources which are both structural and on the general economic situation, as well as data relative to the support mesures implemented. It is in tune with the times and the metropolitan territory through data used on the scale of Paris, the Greater Paris - Grand Paris Metropolis -, Ile-de-France and sometimes on finer scales depending on the indicators (districts, municipalities, neighbourhoods of the City’s urban coherence policy, etc.).

As well as this, in depth thematic observation is carried out, in liaison with the Observatory’s partners, of priority issues and sectors particularly affected by the crisis, such as tourism, commerce, the craft industry and culture. Other subjects are identified to be examined in more depth such as, for example, the social and solidarity economy, office real estate and the professional integration of young people.

Implementation of the Observatory will develop a dynamic tool for sharing trend indicators on the general economic situation and producing thematic analyses in the form of study notes. It also has regular meetings with partners to share the main results and contribute to constructing a forward looking approach and vision.

A partnership Observatory
Managed by the Paris Urbanism Agency (Apur) and the City of Paris Department of Attractiveness and Employment (DAE), the Observatory is a space for partnership thinking  which is collectively constructed with more than thirty Parisian economic players.

The Observatory’s Partners from the Parisian economy

Other partners are also associated to the work of extending knowledge on specific themes: The Canals, Ministry of Culture, Regional Observatory of Company Buildings in Ile-de-France (ORIE), Regional Land Use Observatory (ORF), the Paris youth training and employment centre (La Mission Locale), Paris mixed economy companies (SAMEAST), the Group of Economic Interest (GIE Commerce), France Stratégie, Paris Chamber of Solicitors (Chambre des notaires de Paris), the Paris Bar (Ordre des avocats à la Cour de Paris), the Registrar of the Paris Commercial Court (Greffe du tribunal de commerce de Paris), Paris Region Department of Public Finance (DRFIP), National Confederation of Very Small Companies in Paris (CNTPE), Confederation of Small and Medium Sized Companies (CPME), Chaire Travail, etc

First results
The first data collected by the Observatory shows that Paris has been particularly affected by the economic crisis. In the 4th quarter of 2020, the loss of jobs is estimated at -10% in Paris compared with -8% in France (compared with the 4th quarter 2019). As an example, the average turnover of micro, small and medium businesses (TPE/PME) fell in Paris by -15% in the first three quarters of 2020 compared with the same period in 2019 (whereas it fell by -10.8% in Ile-de-France and -8.7% in France).

38,600 salaried jobs were destroyed in Paris between January and September 2020, that is more than 40% of the regional job losses, while under a third of all jobs in the ile-de-France region are concentrated in Paris. During the first half-year, Paris was the Ile-de-France department that was the most heavily impacted by the crisis and during the third quarter the Parisian economy recovered more slowly than regional and national levels due to it being heavily penalised, notably by the drop in foreign visitors and the absence of business tourism. Aware that almost 60% of Parisian jobs are held by non-Parisians, the impact of the crisis on the capital had repercussions in the rest of the Grand Paris Metropolis as well as in the region and the provinces. 

Peaking at the end of April 2020, the number of job seekers not having worked at all (category A) reached 164,630 in Paris, the highest since the beginning of statistical coverage in 1996. By the end of 2020, the number of job seekers remained high (146,970) although this decreased during the 2nd and 3rd quarters. At the same time the number of people claiming RSA benefit continued to rise: at the end of November 70,000 Parisian households were drawing the RSA that is 9,000 more than at the beginning of the year, a rise of +15% compared with +8.5% in France. Recourse to partial unemployment benefit was widespread reaching a peak in April 2020 when almost 644,000 salaried workers benefited from it for a total sum of over 800 million euros. 

Among the sectors the most affected tourism, culture, cafés and restaurants were the most heavily impacted. In March-April and in November 2020, 46,000 “non-essential” shops remained closed, or limited their business to take away sales, that is 3/4 of shops and services on ground floor premises in Paris.  
Animation in the streets of Paris was affected with the closing of bars, cafés and restaurants which represent nearly 1 out of every 4 commercial businesses (approx. 15,200). The cultural sector, which represents nearly one out of ten jobs in Paris, has been affected at all levels (apart from video games). Tourism, which represents a priority economic activity in Paris and Ile-de-France is practically dormant with a hotel occupation rate of only 8% in the month of November 2020 (compared with 83% in 2019). Paris being so affected, much more than the rest of the national territory, is due to the decrease of both international and French customers, notably the business clientele.  

Certain sectors, however, have maintained their business activity, as is the case of shops in the sectors of food, health, human resources, digitalisation, building and BTP, etc. Despite the lockdowns, the creation of companies is practically at a par with last year, 2019, with a peak in the autumn 2020 when 8,700 new companies were created, particularly in certain business sectors like home delivery of goods or meals and e-commerce.
 

Observatoire de l’économie parisienne. Données de contexte sur la crise et indicateurs de conjoncture
Couverture - Les commerces parisiens, premiers résultats du recensement d'octobre 2020 © Apur
Couverture - Mars - juillet 2020, Paris face à la crise de la COVID-19 © Apur
Couverture - Éléments d’analyse et de connaissance de l’économie parisienne © Apur
Impact économique de la crise liée à la Covid-19 dans la Métropole du Grand Paris – Couverture © Apur
Télétravail et mobilité dans le Grand Paris – Couverture © Apur