French unemployment tops 3 million as european economy struggles

The number of unemployed people in France has topped 3 million for the first time since 1999- according to official figures.French unemployment tops 3 million as european economy strugglesAugust’s jobless total rose by 23,900 to 3.011 million, a 9% increase on a year earlier, marking the 16th consecutive monthly rise.

Speaking before the data was officially announced, Labour Minister Michel Sapin said: “It’s bad. It’s clearly bad.”

However, the government blamed the previous regime of Nicolas Sarkozy.

“These three million unemployed embody the failure of economic and social policies undertaken during the last few years,” the labour ministry said in a statement.

The news will, however, add pressure on President Francois Hollande, who came to power on a promise to revive the economy.

Not since 1999 has France seen unemployment hit the 3 million mark. And the worst of it is that the figure is in reality higher.

What many economists are pointing out is that the problem with French unemployment is that it is structural, not conjunctural. In other words even in good economic times, it does not fall far. Not since the early 80s has it been much below 7.5%.

Just to keep unemployment stable, the economy needs to grow at 1%. All the forecasts for next year put growth at a fraction of that.

However since May, major companies have announced thousands of layoffs, including carmaker Peugeot, drugmaker Sanofi, airline Air France-KLM, and retailer Carrefour.

Analysts warned that the unemployment situation could worsen.

France’s central bank this month predicted that the economy would contract by 0.1% in the third quarter after flatlining for the first half of the year.

October 12, 2012 · Home Based Jobs · Comments Closed
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