Surprising Unemployment Rate Decline in France
Published: August 9, 2024, 11:08 AM
A surprise awaits France’s labor market as the unemployment rate unexpectedly fell by 0.2 points in the second quarter, settling at 7.3% of the active population. This marks a decrease of 40,000 unemployed individuals compared to the previous three months.
Experts express cautious optimism, citing the stabilization of the unemployment rate and a slight increase expected in the second half. Despite this, historically low levels are maintained.
The decline was particularly notable among younger demographics, with a 0.4-point drop for those aged 15-24. However, the rate remained higher than a year ago. For those between 25 and 49, the rate remained stable, while it was completely stable for those 50 or older.
The positive trend extends to overall employment, which continues to rise. The employment rate for those aged 15-64 reached a new high of 69%, while the overall employment rate remained stable at 74.5%.
The figures were released alongside news of additional paid work opportunities in the private sector during the second quarter. While some caution is advised due to missing data from public and private sectors, the reduction in unemployment compared to the first quarter is notable.
Economists suggest this trend aligns with the revival of productivity in the economy. However, sustained economic growth of at least 1.6% per year is needed to significantly reduce the unemployment rate and reach the 6% mark.