France's unemployment rate hits 8.1%, impacting the economy; international turmoil directly strikes.

France’s unemployment rate rose to 8.1% in the first quarter of this year, reaching the highest level since 2021. In addition to the economic slowdown, international instability has also weakened companies’ ability to absorb employment, and its impact has spread across the entire labor market.

On the 13th (local time), the National Institute of Statistics and Economic Studies (INSEE) announced that, according to International Labour Organization (ILO) standards, the number of unemployed people in the first quarter this year was 2.6 million. This figure increased by 68,000 compared with the previous quarter. The unemployment rate rose by 0.2 percentage points from the fourth quarter of 2025, and by 0.7 percentage points compared with the same period last year. Although President Emmanuel Macron had proposed a target of reducing the unemployment rate to around 5% by the end of his term when he was re-elected in 2022, the recent trend has run counter to that goal.

By age group, the deterioration is more pronounced among the core working-age population than among young people. The unemployment rate for those aged 15 to 24 is 21.1%, still at a high level, but down 0.4 percentage points from the previous quarter. By contrast, the unemployment rate for those aged 25 to 49 is 7.3%, up 0.4 percentage points, reaching the highest level since the first quarter of 2021. The unemployment rate for those aged 50 and above is 5.2%, up only 0.1 percentage points. However, compared with the same period last year, unemployment rates have increased across all age groups. By gender, the female unemployment rate is 7.7% and the male unemployment rate is 8.5%, with the increase for men larger than that for the previous quarter.

Beyond the visibly unemployed, there are also a considerable number of people who remain on the fringes of the labor market, meaning France’s employment situation is more severe than the figures suggest. Among the non-economically active population, 1.8 million are classified as a so-called “unemployment fringe group.” These people have a desire to work, but either they do not engage in job-seeking activities or they find it difficult to move into a job immediately, so they are not counted among official unemployed people. On the other hand, the average working hours per employed person are 31.1 hours per week, with little change from the previous quarter and from the same period last year. This indicates that there are no clear signs yet of economic recovery leading to more job creation or longer working hours.

The French government attributes the rise in the unemployment rate to slower economic growth caused by external shocks. Speaking on France Info, Labor Minister Jean-Pierre Parlondau said that given the difficult economic environment, including the Iran war, the increase in unemployment was an expected outcome. In fact, due to the trade tariff dispute with the United States, a sharp drop in exports following the mid-February crisis in the Middle East, and simultaneous contraction in household consumption and business investment, France recorded zero growth in the first quarter of this year. Economist Sylvain Belsange also pointed out that with a growth rate of 0%, it is hard to expect the job market to sustain itself on its own. This trend may continue for some time, unless external uncertainties dissipate quickly; it is expected that policy responses that balance economic recovery and employment protection will become increasingly important in the future.