Unemployment rate in France jumped to its highest level since 1998 in the first quarter of 2013, pausing challenge to President Francois Hollande, who has pledged to halt the rising unemployment by the end of 2013.
The unemployment rate, as measured by the ILO methodology, was 10.8 percent in the first quarter, the highest since the first quarter of 1998, the latest figures from the statistical office Insee showed Thursday.
This was higher than a downwardly revised 10.5 percent in the fourth quarter of 2012. The outcome was almost in line with forecasts.
For metropolitan France, that excludes its overseas territories, the jobless rate was 10.4 percent, up from 10.1 percent in the fourth quarter. This was also the highest in 15 years.
This comes after data from the Labor Ministry showed last month that the number of job seekers in the country reached its highest level on record in April. According to the ministry, the number of unemployed, registered as job seekers, totaled 3.3 million in April, which was up by 1.2 percent from March and 12.5 percent higher compared to April 2012.
The economy slipped into recession in the first quarter of 2013, with the gross domestic product contracting 0.2 percent sequentially. The European Commission forecasts the economy to contract 0.1 percent this year, in contrast to the earlier prediction of a 0.1 percent expansion.
A report from Insee showed last month that confidence among French consumers deteriorated to its lowest on record in May.
Hollande has been advocating for measures to boost economic growth since his election in May last year. He has vowed to boost growth and reverse rising unemployment by the end of this year. But the promise looks too ambitious, given the recession in France and in wider euro area.
Last month, the government signaled that France's austerity era may be coming to an end amid EU-wide calls for flexibility in fiscal targets and more growth oriented reforms.
The International Monetary Fund earlier this week urged France to strengthen its economic reforms to narrow competitiveness gap. It also said France has scope to moderate the pace of fiscal consolidation.
The lender, meanwhile, reduced its growth forecast for the economy. According to the IMF, France may see a 0.2 percent contraction this year before growing 0.8 percent in 2014. The Fund had earlier projected 0.1 percent contraction this year and 0.9 percent growth in 2014.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.