Sectors such as construction, real estate and commerce are bearing the brunt of the consequences of a tense economic situation, threatening thousands of jobs.
The annual report from BPCE L’Observatoire confirms an explosion in business bankruptcies in 2024. With 66,422 failures recorded, this figure is the highest since 2009. In an economic context marked by inflation, the rise in bankruptcies interest and a general slowdown, these bankruptcies particularly concern SMEs and ETIs, with significant repercussions on employment.
A record year for failures
According to the BPCE L’Observatoire report, 66,422 companies went bankrupt in 2024, an increase of 28% compared to 2019, before the health crisis. This level exceeds that recorded in 2023 by 17% and constitutes a record of the last fifteen years.
Small and medium-sized businesses were particularly impacted: 5,265 SMEs and ETIs defaulted, an increase of 51% compared to 2019. The report attributes this increase to a “partial catch-up” of the failures avoided between 2020 and 2022 thanks to the measures support put in place during the health crisis.
Sectors and regions heavily affected
Construction, commerce, real estate and business services are among the most impacted sectors, concentrating a large part of the insolvencies. In real estate and accommodation and catering, the situation is particularly worrying, with high bankruptcy rates and a marked drop in activity.
From a regional perspective, disparities are also significant. According to BPCE L’Observatoire, certain regions such as Aquitaine and Poitou-Charentes recorded increases in failures of between 34% and 43% compared to 2019. Conversely, areas such as Lorraine and Limousin were relatively saved, with increases of less than 15%.
Significant impact on employment and gloomy outlook for 2025
Business bankruptcies have put nearly 260,000 jobs at risk in 2024, an increase of 41% compared to 2019. BPCE L’Observatoire underlines that the construction, commerce and accommodation and catering sectors concentrate more than half of the jobs threatened, representing a significant proportion of the employed workforce in certain sectors.
The group anticipates a further increase in insolvencies for 2025, with around 68,000 companies in difficulty expected. Unlike in 2024, this increase should mainly concern very small structures, while the rate of bankruptcies could slow down for SMEs and ETIs.
The report highlights that this trend is part of an economic context marked by limited growth, political uncertainty and the end of the support measures put in place during the health crisis.
