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French Q2 unemployment rises to three-year high

Published 09/03/2009, 03:33 AM
Updated 09/03/2009, 03:36 AM

PARIS, Sept 3 (Reuters) - French unemployment rose in the second quarter of 2009 to 9.5 percent, the highest in three years, and is seen deteriorating further before economic recovery reaches the labour market.

The quarterly jobless rate according to International Labour Organisation standards climbed from a downwardly revised 8.9 percent in the first quarter, national statistics office INSEE said on Thursday.

That was the highest since the first quarter of 2006, when unemployment also stood at 9.5 percent, and underlined worries that weak consumer spending may threaten a nascent recovery.

In mainland France, which excludes overseas territories, the unemployment rate climbed to 9.1 percent from 8.5 percent in the first quarter.

"The deteriorating trend in the labour market should continue for several quarters, because even a gradual recovery in business will not lead to an immediate fall in unemployment," Economy Minister Christine Lagarde said in a statement.

Young French were hardest-hit by the rise in unemployment, INSEE said. Among 15-24-year-olds in mainland France and its overseas territories, the jobless rate rose to 24.6 percent from 23.1. percent in the previous quarter.

Earlier this week, monthly euro zone data showed that unemployment in the 16-country area hit a 10-year high of 9.5 percent in July. French unemployment rose to 9.8 percent in July, the data from European Union statistics office showed.

(Reporting by Sophie Hardach, +33 1 4949 5339; editing by David Stamp)

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