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Economy

Unemployment rate rises slightly to 7.7% in France in the third quarter

Thursday 13 November 2025 - 07:00

By: Sahili Aya

Unemployment rate rises slightly to 7.7% in France in the third quarter

France’s unemployment rate edged up by 0.1 percentage point to 7.7% in the third quarter of 2025, according to figures released by the National Institute of Statistics and Economic Studies (INSEE) on Thursday. The number of job seekers rose by 44,000, bringing the total to around 2.4 million people as defined by the International Labour Organization (ILO) criteria.

The report highlights a modest weakening of the labor market in a period marked by economic uncertainty and tighter budget constraints. Despite the overall increase, unemployment among young people aged 15 to 24 dropped by 0.2 percentage point to 18.8%. INSEE noted that while the unemployment rate is 0.3 point higher than a year ago, it remains well below its mid-2015 peak, when it exceeded 10%.

The quarter also saw a loss of 60,600 salaried jobs, adding to an annual decline of 112,100 positions (-0.5%). Labor market experts attribute this trend to slower economic growth and reduced hiring incentives, particularly in the apprenticeship sector.

In response, the French government has been working to balance job support with spending cuts. In 2025, subsidies for hiring apprentices were reduced by €1,000 for small and medium-sized enterprises and by €4,000 for larger companies. A proposal to end payroll tax exemptions for apprentices—expected to generate €400 million—was rejected by lawmakers earlier this month.

Although the uptick in unemployment is modest, economists warn that further job losses could follow if growth remains sluggish in the coming quarters.