France's unemployment rate rose unexpectedly to 8.1% in the first quarter, the highest level in 5 years, official figures showed on Wednesday. [1, 2, 3]
The increase hit all age groups and came in above economists' forecasts for a dip to 7.8% from 7.9% at the end of last year. [1, 2, 3]
Bank of France governor Francois Villeroy de Galhau said the figures showed the slowdown in the economy. "The unemployment figures show a slight increase, which reflects the slowdown," he said. He also noted that the labor market was still well below the levels seen after the 2012 downturn, adding that the French economy has created more than 4 million net jobs since 2010. [2]
The higher jobless rate adds to signs that France's economy was weak before the Iran war began, according to the reports. They said the economy did not grow in the first three months of the year, and a Bank of France survey of 8,500 business leaders found the conflict was starting to weigh on activity and inflation. [2, 3]
French officials said the slowdown meant the labor-market figures were a call to keep working on the issue, with David Amiel calling it "a call for us to continue our work on this top priority." [2]
The Bank of France survey also found 13% of industrial businesses were reporting supply difficulties. [2]
