France Unemployment Hit Highest Level in more than Two Years

The number of people registered as unemployed in mainland France rose by 43,500 to 2.935 million in November 2024, the largest increase since the pandemic.

The rise in unemployment was most felt among the working-age population from 26,600 to 1,711 million, followed by those under 25 from 14,700 to 422,000 and those over 50 from 2,200 to 802,000.

"After peaking at over 10% between 2012 and 2016, the French unemployment rate has been falling almost continuously since 2016, reaching a historic low of 7.1% at the end of 2022, and standing at 7.3% in Q2 2024. While this fall is partly due to cyclical factors - the Banque de France forecasts a slight temporary rise in unemployment to 7.6% in 2025 - it is primarily the result of structural factors that can be understood by analyzing the movements of workers between employment and unemployment. Leaving aside the increase in the participation rate [measured by the ratio (employment + unemployment)/working-age population], which has not directly contributed to the change in the unemployment rate since 2015," Banque de France wrote.

France announced on Monday the formation of a new government made up of former ministers and senior civil servants that Prime Minister François Bayrou hopes will be able to oversee the passage of the 2025 budget and prevent the country from worsening its crisis.

Bayrou’s team is expected to face pressure to cut a deficit forecast to exceed 6 percent of gross domestic product by the end of the year.