Job qualification and trade renewal in Grenoble-Isère

Under this title, a study published by AEPI in March 20071 confirmed, with all the necessary fi gures, that the number of jobs was growing twice as fast in Grenoble-Isère than on average in the rest of France. Highly qualifi ed jobs were enjoying spectacular growth, visible even abroad. Nor were the most innovative sectors developing at the expense of less well qualifi ed jobs. The attractiveness of the Grenoble area was benefi ting the whole of the Isère department, spreading prosperity more evenly across a diversifi ed fabric of trades.
In the 1980s and 1990s2, Grenoble-Isère experienced a rise in the number of jobs twice as high as the national average. But this certainly did not happen by chance. It was very much the result of a determined effort. For the last 30 years public investment in advanced technology sectors, backed by policies encouraging partnerships with research centres and higher education, have attracted high-profi le industrial projects to Grenoble- Isère and encouraged the infl ux of new business. The conclusions of the AEPI study on the changing pattern of qualifi cations between 1982 and 19992 attest to this point. Rising employment levels start by benefi ting the most highly qualifi ed (43,000 more jobs over the relevant period), with much higher growth than elsewhere in France (80% more senior management posts, compared with a 62% increase in France; 139% more engineers, compared with an 87% increase nationally).
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The Grenoble urban area stands out for the technical specialization of its job market. It has the highest proportion of engineers in France (6.4%), ahead of Paris (6.1%) and Toulouse (5.8%). It ranks second for the proportion of senior executives, who account for 19.3% of all jobs, ahead of Toulouse (18.5%) but behind Paris (22.5%). Neighbouring Lyon is in fi fth position with 15.8%. The high level of qualifi cation and technical specialization of industrial jobs refl ects sustained growth in innovative sectors. These jobs play a decisive role in the local economy. Such high standards mean fi rms have the capacity to innovate, designing, manufacturing and marketing new products, as well as constantly upgrading existing production processes. This makes it that much easier to adapt to long-term changes in the economy. Some sectors have a ratchet effect that drives the whole economy. Information and communications technology accounts for 500 companies and more than 38,000 jobs in Grenoble-Isère. Major framework projects such as Minatec, Alliance-Crolles 2 or Minalogic have contributed to their development and consolidated Grenoble-Isère’s leading position in France and its status as a major centre in Europe and the world at large. Microelectronics and nanotechnology add up to 21,700 jobs, with a further 3,000 in public research. Computing and software technology employ 12,000 people, with 1,500 others working in public research. 
Some 5,700 students are doing courses directly related to these subjects, with 3,400 degrees awarded annually. The number of senior executives, which is well above the national average in the Isère area and more particularly the Grenoble area (which accounts for 70% of all jobs in Isère), is undoubtedly a key factor in the local dynamic. But the positive trend observed during the 1980s and 1990s has continued, picking up speed in recent years. Statistical analysis of a range of indicators for 1999 to 2006 reveals more solid growth. The Grenoble area has been gaining about 3,500 salaried jobs a year in the private sector, almost three times more than over the previous two decades (during which the annual gain was 1,300 jobs). This impressive performance is due to the drawing power of the various hightechnology sectors and the changing face of certain trades. The high-tech sectors, particularly electronics, are driving the job market. Companies such as STMicroelectronics, Soitec, MGE UPS and BD have increased their workforce in strategic activities (studies, R&D, marketing, purchasing, etc.). The 2000s consequently seem to be confi rming the trend for more jobs for senior executives and intermediary
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professions in industry and business services. But unlike previous decades the drop in the number of less qualifi ed jobs has stopped, and there has been a rise in the number of employees in retailing and consumer services. On the other hand conventional industrial activities – paper, chemicals, metal working – which employ large numbers of workers, are still shedding jobs and fi nding it hard to compete on international markets. By and large growth in highly qualifi ed jobs has consequently not been achieved at the expense of less well qualifi ed jobs, a feature specifi c to Grenoble-Isère. Unlike the dominant trend in France, over the last 20 years Grenoble-Isère has registered a substantial increase in the number of employees, compensating the decline in the number of industrial jobs. Currently 22% of all jobs in Grenoble- Isère require no qualifi cation. But these jobs are very different from their equivalent in the 1970s and 1980s. The pattern of poorly qualifi ed jobs has changed a great deal, declining in industry and construction, expanding in consumer services and companies. And such jobs have achieved stronger growth in Grenoble-Isère than elsewhere because a dynamic economy has eased the conversion. Forward-looking economic planning has clearly benefi ted the whole of the economy. The job market now seems to be focussing on two growth sectors: very highly qualifi ed jobs, and others demanding little or no qualifi cation. Growing demand for the fi rst category is creating jobs for the second group. It thus seems possible to reconcile the goal of attracting or training growing numbers of top grade executives and engineers with the objective of maintaining a healthy level of employment for unqualifi ed workers. It is certainly our ambition as part of a balanced economy. 1 Les Cahiers de l’Isère, n°16, AEPI, 68 pages, March 2007. 2 Latest census data published (1982 and 1999) by France’s National Institute for Statistics and Economic Studies (Insee).
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