French Q2 Jobless Rate Below Forecasts


The unemployment rate in France fell to 9.1 percent in the second quarter of 2018 from 9.2 percent in the previous period and below market expectations of 9.2 percent.

The average ILO unemployment rate in metropolitan France and the overseas departments (excluding Mayotte) edged down to 9.1 percent in the second quarter from 9.2 percent in the previous period. In metropolitan France only, the unemployment rate declined to 8.7 percent in the three months to June from 8.9 percent in the previous period, as the number of unemployed dropped by 48,000 to 2.5 million. The unemployment rate declined among youths and persons aged 25 to 49, whereas it was stable for those aged 50 and over. Among unemployed, 1.0 million were seeking a job for at least one year. Thus, the long-term unemployment rate stood at 3.6 percent, the same as in the previous quarter. 

The employment rate of the population aged 15-64 years increased by 0.1 percentage points to 65.8 percent in the second quarter, its highest level since the early 1980s. The employment rate rose by 0.3 points for persons aged 25 to 49 and was practically stable among other age groups. Over a year, it increased by 0.4 percentage points.

About 5.8 percent of the employed persons were underemployed, meaning that they had a part-time job but wished to work more. This share was close to that of Q1 2018 (-0.1 percentage points) and was 0.2 percentage points below year-on-year.

The activity rate of people aged 15-64 was stable at 72.2 percent, its highest level since the beginning of the series in 1975. Over a year, it increased by 0.2 percentage points. Among inactive people, 1.5 million persons wished to work without being considered as unemployed according to the ILO definition: they made up the halo of unemployment. Their number decreased by 19,000 compared to Q1 2018 and by 25,000 over a year.

French Q2 Jobless Rate Below Forecasts


INSEE, France | Rida | rida@tradingeconomics.com
8/14/2018 10:43:14 AM