SHARE
COPY LINK

UNEMPLOYMENT FRANCE

New jobless record for Hollande’s anniversary

Three years into his presidency at the Elysée Palace and François Hollande's bid to bring down unemployment shows no sign of success as the number of French people out of work hits a new record high.

New jobless record for Hollande's anniversary
People demonstrate on December 6, 2014 in the streets of Paris against precarity and unemployment. Photo: AFP

The number of unemployed in France hit a new record in March at 3.51 million people, up 0.4 percent from February, with young people especially hard hit, the Labour ministry said on Monday.

The news comes as the third anniversary of President Francois Hollande's election approaches. He has pledged not to seek re-election in 2017 if he does not succeed in reversing the trend of ever-increasing unemployment.

Labour Minister Francois Rebsamen in a statement chose to focus on the first quarter figure which he said showed the smallest increase over three months in jobless workers since early 2011. He said it was a sign that the government's measures "are beginning to bear fruit."

While the INSEE national statistics office has forecast more positive economic growth for France this year, it says it will be insufficient to drive down the country's stubbornly high unemployment.

The jobless rate was forecast to hit a 20-year record high of 10.2 percent in mainland France.

President Hollande has promised that he won't seek re-election unless unemployment has fallen by the time the 2017 presidential election comes around.

He famously promised to halt the rise in jobless, which began long before his presidency started, by the end of 2013. But nearly 18 months on and the figures continue to rise.

Hollande has launched a two-pronged attack to tackle joblessness and push for growth.

The first is known as the Responsibility Pact, a series of tax cuts for businesses in return for job creation.

The second is a package of reforms aimed at opening up France's closed economy, including extending the number of Sundays per year when stores can open their doors.

The government has forecast at 1.0 percent in 2015, rising slightly to 1.5 percent in 2016 and 2017.

Like other countries in the euro area, France is hoping the European Central Bank's stimulus programme will also help boost growth.

Member comments

Log in here to leave a comment.
Become a Member to leave a comment.

UNEMPLOYMENT FRANCE

Has France really seen a record fall in unemployment?

France’s beleaguered Socialist government were celebrating the biggest drop in the jobless rate since the year 2000, but is it really reason to rejoice?

Has France really seen a record fall in unemployment?
Photo: AFP

The figures, which took most people by surprise in France, revealed that the month of March saw the number of unemployed drop in France by a huge 60,000.

To put it in context that’s the biggest recorded drop for 16 years.

The government were quick to celebrate the figures released by the Ministry of Labour.

“This is good news for France,” said spokesperson Stephane Le Foll, a key ally of President François Hollande, whose chances of re-election hinge on whether there is a major drop in unemployment before next year’s elections.

Le Foll said the government would continue to do more in the coming months to get unemployment down and boost Hollande’s chances at the polls.

But most economic experts in France and indeed Hollande’s enemies on the right, as you would expect, say it’s far too early to start popping any champagne corks.

Many point out that the figures are unreliable from month to month and it’s far better to look at the jobless rate over a whole year.

“A fall of this size is encouraging but needs to be confirmed,” economist Bruno Ducoudré told L’Obs website.

The figures also only applied to category A of France’s “chomeurs”, which is essentially those actively seeking full time work.

The number of jobseekers in other categories, such as those who have a few hours of paid work but seek more, or those not actively seeking work, perhaps because they are in training or sick, actually rose.

But most economists accept that Hollande’s economic policies combined with a slight improvement in the economic outlook for the country has had an effect, albeit menial, on unemployment.

Policies such as cutting payroll charges for employers and offering bonuses to companies who hire new staff on permanent contracts or temporary contracts of at least six months, is helping people into jobs, experts say.

But the president and the country still face an uphill task.

“Even if unemployment falls in 2016, it will take several years of growth and falling unemployment to erase the scars of the economic crisis and give people the impression that the situation has really improved,” said Ducoudré.

SHOW COMMENTS