Jobs in France could see a boost after it was announced that the country was going to reduce social charges to give companies more incentive to hire.

Companies in the country have long called for this move, as they say that social charges, which fund the benefits system, discourage employers from creating new jobs.

This marks a turnaround for Nicolas Sarkozy and his government, which has previously ignored this issue.

Xavier Bertrand, labor minister, told the Financial Times that moving some of the burden for benefits to a sales tax would help to encourage business owners to get people into the workplace.

Towards the end of 2011, predictions in France said that employment was expected to grow by some 24,000 jobs for the year. However, the final figures have yet to be released.

President Sarkozy faces an election this April, and it is expected that these changes will come into effect before then.

Posted by Alex Donnell