France has been dealing with increasing economic and political uncertainties, mainly arising from the snap elections back in June, which resulted in a hung parliament.
ADVERTISEMENTThe French unemployment rate for the third quarter of the year inched up to 7.4%, amid rising growth and employment concerns.
That was up from 7.3% on the previous quarter and in line with analyst forecasts, according to INSEE France.
The number of people without a job rose by 35,000 to 2.3m for the third quarter of 2024, with young people aged between 15 and 24 bearing the brunt of the unemployment levels with 19.7% out of a job. That was a rise of 1.8% on the previous quarter.
The unemployment rate for people aged between 25 and 49 fell to 6.6%, a dip of 0.1% on the second quarter.
Similarly, the unemployment rate for people aged 50 and over was 7.6%, a decrease of 0.3% on the second quarter.
The percentage of women without a job fell to 7.2%, a drop of 0.2%, while the unemployment rate for men inched up to 7.6%, rising 0.3%.
The activity rate, which measures the number of people who are active or potentially active in the labour market, also increased 0.3% to 74.8% in the third quarter of the year.
French short-term growth prospects likely to be muted
France has been dealing with increasing economic and political uncertainties, mainly arising from the snap elections back in June, which resulted in a hung parliament. The country is still facing the effects of high interest rates, sluggish economic growth and its citizens being affected by the rising cost of living.
Regarding the French economy’s outlook, the insurance non-profit organisation UNEDIC said in a recent report: “According to the economists’ consensus, growth will be limited in the short term, settling at 1.1% in 2024, then 1.0% in 2025. It should pick up again from 2026 (1.3%) and 2027 (1.4%).
“Inflation, whose high levels have marked previous years, is expected to fall back faster than forecast, slowing wage growth.
“Employment is likely to be affected by this economic downturn, with only 38,000 net new jobs created in 2024 and 31,000 in 2025, a significantly slower pace than in 2023 (+107,000). Net job creation would pick up again in 2026 (+131,000) and 2027 (+146,000).”
However, UNEDIC highlighted that this forecast was likely to be affected by several uncertainties, especially around the budget restraint measures outlined in the 2025 Finance Bill, which is still under review.
