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16.05.2025

France's unemployment rate rose slightly in Q1

Data published by the National Institute of Statistics and Economic Studies (INSEE) showed that in the first quarter of 2025, France's unemployment rate, as defined by the ILO, increased by 0.1%, as expected, reaching 7.4%. The number of unemployed people rose by 64,000 to 2.4 million.


Unemployment by Age and Gender:

Ages 15–24: 19.2%, slightly up over the quarter (+0.1%) and higher than last year (+1.1%).

Ages 25–49: 6.7%, largely unchanged.

Ages 50+: 4.7%, stable over the quarter and down 0.3 points year-on-year.

Women: unemployment rose by 0.3 points to 7.4%, catching up with the men’s unemployment rate which was virtually stable over the quarter (-0.1%).


New Employment Policies:

Q1 2025 marked the start of the “Full Employment Act,” though its impact on labor indicators was minimal so far.

Inactive Workers and “Halo” Around Unemployment:

About 1.9 million people wanted work but weren’t actively searching or available. This “halo” group shrank by 109,000 over the quarter, with notable drops among young and middle-aged adults.

Long-term Unemployment:

527,000 people were unemployed for over a year. The long-term unemployment rate held steady at 1.7%, down 0.5 points from 2019.

Employment Rates Rise:

Overall employment (ages 15–64) hit a record 69.5% (+0.4%).

Youth employment rebounded by 1.1 points, to 34.8%, but remained 0.3% below its level from a year ago.

Ages 50–64: rose to 69.3% (+0.4% over the quarter), the highest since 1975.

Permanent jobs grew to 51.3% (+0.3% over the quarter); part-time and fixed-term roles remained stable.

Labor Market Constraints:

16.2% of labor market participants were underemployed or in the halo group — a 0.3-point decrease. Average weekly working hours rose slightly to 31.2 (+0.3%).

Activity Rate Hits Record High:

The labor force participation rate jumped 0.5 points to 75.1% — the highest since records began in 1975. Gains were seen across all age groups, especially among youth and older workers.


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