The Zhitong Finance App learned that the unemployment rate in France continues to rise, reaching the highest level in nearly six years. According to data from the French National Statistics Office, the unemployment rate for the second quarter was 8.3%, up from 8.1% in the previous quarter, and higher than the previous average forecast of 8.2% by economists.
The deterioration of the labor market has become a stain on French President Emmanuel Macron's administrative report card. During Macron's first five-year term, the overall unemployment rate in France showed a downward trend. Encouraged by this achievement, his Government initially set a goal of achieving full employment by the end of its second term next year.
However, the sharp rise in energy prices caused by the Russian-Ukrainian conflict and the war in Iran has dragged down the French economy, and this goal has fallen short.
Furthermore, previously released data showed that France's inflation rate unexpectedly rose 2.4% year on year in July, a significant increase from 2.0% in June. In July, the French manufacturing purchasing managers' index fell to 49.8 from 51.2 in June, below the 50 boom-bust dividing line. Joe Hayes, chief economist at S&P Global Market Intelligence, stressed that the recent rise in oil and gas prices “will send a signal to companies that the macroeconomic and geopolitical environment is unstable and uncertain,” and warned that “this may further weaken market confidence.”
The unemployment rate continues to rise, which may help candidates interested in running for next year's presidential election to succeed Macron. These candidates continue to criticize Macron's pro-business tax cuts and labor-market reforms, and in Macron's view, it was this series of reforms that contributed to the outstanding performance of the job market at the beginning of his term.