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Enrichissement de la croissance en emploi et productivité, by Nicolas Carnot and Alain Quinet. The decline in labor productivity gains since the late 1980s in Europe, especially in France, may have several origins. It may reflect a slowdown in the rate of technical progress, the incidence of work-sharing schemes or a rebalancing of production factors. This paper highlights the importance of this rebalancing process, as a response to the fall in the relative cost of labor, particularly unskilled labor. The decline in labor productivity gains cannot be considered as an unfavorable development as long as it reflects increased job growth, in the context of falling structural unemployment. We will illustrate the underlying mechanisms using a standard labor market model including labor heterogeneity. A dynamic version of the model is calibrated to provide an idea of the response of GDP, employment, and production factors to cost shocks.