| Consensus | Actual | Previous | Revised | |
|---|---|---|---|---|
| Rate | 6.9% | 6.9% | 7.0% | 6.9% |
Highlights
The labour market performed much as expected last quarter. The mainland jobless rate was unchanged at the 6.9 percent level to which the fourth quarter was downwardly revised. This matched the market consensus and was 0.2 percentage points below its mark a year ago and a full percentage point lower than just before the arrival of Covid.
Including overseas territories, unemployment was down 7,000 on the quarter at 2.186 million. This was its third successive decline but the smallest of the sequence and compared with a 48,000 drop in the previous period. At the same time, the employment rate rose 0.3 percentage points to 68.6 percent, some 0.6 percentage points higher than in the first quarter of 2022 and a new record. The increase was largely due to a pick-up in full-time positions.
In sum, despite sluggish growth at the start of the year, the labour market remains very tight with firms reluctant to shed staff even in the face of weak demand. Today's report puts the French ECDI and ECDI-P at 11 and minus 5 respectively, essentially indicating only very limited surprises in overall economic activity.
Including overseas territories, unemployment was down 7,000 on the quarter at 2.186 million. This was its third successive decline but the smallest of the sequence and compared with a 48,000 drop in the previous period. At the same time, the employment rate rose 0.3 percentage points to 68.6 percent, some 0.6 percentage points higher than in the first quarter of 2022 and a new record. The increase was largely due to a pick-up in full-time positions.
In sum, despite sluggish growth at the start of the year, the labour market remains very tight with firms reluctant to shed staff even in the face of weak demand. Today's report puts the French ECDI and ECDI-P at 11 and minus 5 respectively, essentially indicating only very limited surprises in overall economic activity.
Market Consensus Before Announcement
The mainland rate is expected to edge a tick lower to 6.9 percent.
Definition
The unemployment rate measures the number of unemployed as a percentage of the labour force. It is based on the International Labour Organization (ILO) definition of unemployment, which excludes jobseekers that did any work during the month and covers those people who are looking for work and are available for work. The report contains data on both total joblessness and just mainland unemployment; the latter is regarded as the more significant.
Description
The data report the number of unemployed persons (quarterly average) for metropolitan France and for metropolitan France plus overseas departments. The metropolitan measure is regarded as the more useful guide.
The data provide a comprehensive report on how many people are looking for jobs and the unemployment rate. These numbers are the best way to gauge the current state as well as the future direction of the economy.
Despite the delay in publication of these data, investors can sense the degree of tightness in the jobs market. If labour markets are tight, investors will be alert to possible inflationary pressures that could exist. If wage inflation threatens, it is a reasonable bet that interest rates will rise and bond and stock prices will fall.
The data provide a comprehensive report on how many people are looking for jobs and the unemployment rate. These numbers are the best way to gauge the current state as well as the future direction of the economy.
Despite the delay in publication of these data, investors can sense the degree of tightness in the jobs market. If labour markets are tight, investors will be alert to possible inflationary pressures that could exist. If wage inflation threatens, it is a reasonable bet that interest rates will rise and bond and stock prices will fall.
