Abstract
This article examines the extent to which employment, particularly manufacturing employment, has been 'hollowed out' as a result of internationalisation strategies of leading French multinationals. It finds evidence of a shift to overseas employment, but notes the complexity of globalising trends which make it difficult to interpret them solely in terms of competition for lower labour costs. However, globalisation has shifted power decisively towards business and away from labour and the state. As a result, the state has found it difficult to steer betw een protection of labour and the promotion of flexibility in a relatively strictly regulated economy. State interventionism in social policy has been both a response to and an instrument of economic restructuring.
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