France witnessed a notable improvement in its labour market in the second quarter as the number of unemployed people dropped by 40,000, reducing the unemployment rate from 7.2 to 7.1 percent, near its its historic low and significantly below the 2015 peak at 10.2 percent. This marks a stabilizing yet fragile recovery, given that the rate remains 1 tenth higher than a year ago.

Long-term unemployment also saw a decline, with 11,000 fewer people being jobless for over a year, reducing the rate to 1.7 percent. This improvement indicates gradual but consistent progress toward reducing entrenched unemployment.

The employment landscape showed mixed results across age groups. While the overall employment rate climbed to a record 69.0 percent, younger workers aged 15-24 experienced little change. However, the employment rate among older workers aged 50-64 surged to its highest level since 1975, highlighting successful integration efforts for this demographic. The slight uptick in employment among the core group aged 25-49 underscores a steady yet modest growth.

Overall, France's labour market is showing signs of resilience, with historical highs in employment rates and a cautious decline in unemployment, thereby bringing the RPI to 20 and RPI-P to 18, showing that economic activity continues to run somewhat ahead of market expectations.

The mainland rate is expected to be unchanged at 7.3 percent.

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.

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.