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FR: ILO Unemployment Rate
| Consensus | Consensus Range | Actual | Previous | |
| Rate | 7.5% | 7.5% to 7.7% | 7.7% | 7.5% |
Highlights
The unemployment rate for metropolitan France rose to a seasonally adjusted 7.7 percent in the fourth quarter, from 7.5 percent in the third to reach its highest level since the first quarter of 2021. The “Full Employment Act” which has been in effect for a year, had a modest contribution to the unemployment rate.
Youth unemployment remains a pressing issue, having risen in the fourth quarter to 21.5 percent against 19.1 percent in the third quarter, which is 2.8 percentage points higher than the comparable year-ago period. That is the highest unemployment rate since the first quarter of 2020.
Full-time employment was 57.5 percent in the last three months of the year, down from 57.6 percent the previous quarter, while part-time employment was steady at 11.8 percent of the workforce. Overall, full-time equivalent employment slipped to 64.5 from 64.6 in the third quarter.
The percentage of temporary workers increased to 1.3 percent in the fourth quarter from 1.2 percent in the third. This trend confirms anecdotal reports that firms are tending to replace expiring contracts with temporary ones.
Inactive people, defined as those wanting a job but not being considered due to not seeking work or being unavailable was stable during the fourth quarter. This “halo” around unemployment was 1.9 million people.
The labor market continues to struggle, and there are no indications that things will improve over the coming quarter. Lack of demand in the manufacturing sector is keeping firms cautious. If anything, they will likely revert to temporary contracts if they need extra manpower.
Market Consensus Before Announcement
No change expected in the jobless rate at 7.5 percent, not a pretty picture.