Unemployment for metropolitan France stood at 7.3 percent in the first quarter, unchanged from an upwardly revised first quarter result, matching the 7.3 percent jobless rate from the fourth quarter of 2023. The"Full Employment Act" has now been in force for two quarters but has had"a not significant impact" on the unemployment rate, according to Insee.

The employment rate ticked higher during the second quarter to 69.6 from 69.5 during the first quarter, and is up 0.5 points from the second quarter of last year, reaching its highest level since the series began in 1975. Employment among those aged 15-24 also increased 0.1 point to 35.0, helping push the unemployment rate for the group down to 19.0 percent from 19.2.

Full-time employment was stable at 57.8 percent, and up 0.2 percent over a year ago, while part-time workers rose 0.1 percent to 17.7, just above its lowest level of 17.1 percent seen in 1996. At the same time, underemployment was 4.5 percent, 0.2 percent higher than the previous quarter.

Cracks in the labor market are starting to show, with other indicators showing some industries shedding workers, not filling positions of job-leavers, and often not re-upping temporary contracts. Given this, there isn't likely to be an improvement to the situation in the third quarter with government austerity measures being discussed and the uncertainty of the effect of tariffs.

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.