The number of people registered as unemployed in mainland France surged by 204.8 thousand from the previous month to 3.162 million in February 2025. It was the sharpest increase on record when excluding the shock from the pandemic in 2020, lifting unemployment levels to their highest since 2021 and underscoring the impact that Europe’s slowing economy is having on the French labor market.
French unemployment rises the most since 2020
The rise in joblessness was most pronounced among younger workers under the age of 25, with unemployment in this group soaring by 150 thousand to reach 574 thousand. This suggests that labor market conditions have become particularly challenging for recent graduates and young job seekers facing fewer employment opportunities. Among core-aged individuals (25-49), the number of unemployed climbed by 43 thousand to 1.773 million, while those aged 50 and older saw a smaller but still notable increase of 11.7 thousand to 815.4 thousand.
Concerns over sluggish economic growth in the Eurozone
The latest data highlight growing concerns over sluggish economic growth in the Eurozone, rising borrowing costs, and weak business confidence, all of which are weighing on hiring activity in France. The manufacturing and construction sectors have been hit particularly hard, with companies delaying investment and scaling back hiring due to persistent uncertainty over demand and high inflation. Additionally, recent strikes and political instability surrounding labor reforms may have contributed to the deteriorating employment landscape.
Looking ahead, economists warn that further labor market weakness could strain household consumption, a key driver of the French economy. The government has pledged to introduce measures aimed at stimulating job creation, but with economic headwinds mounting, the road to recovery remains uncertain.
