French unemployment falls

The French jobless rate is at its lowest level for 25 years, as the rate fell to 7.2 percent in the first quarter.

High unemployment has been a pivotal political issue in the country and, as a result, President Nicolas Sarkozy has stipulated that the latest figures are evidence that his economic policies are working as the gross domestic product expanded 0.6 percent in the first quarter.

During the period, economic growth has increased above estimates due to the strength of exports, which has helped to offset a reduced domestic demand, caused by a reduction in consumer confidence. However, the stability of the labour market will help to increase this.

The jobless rate has been falling since 2006 and is now coming in line with the European Union average of 7.1 percent.

The French Finance Minister, Christine Lagarde, indicated that the “historically low” figure is a triumph for the government and that they are still hopeful of reaching the 5 percent target by 2012.

Following the report, the euro fell by 0.1 percent against the dollar and bonds fell, with the yield on the 4 percent bond, due April 2018, gaining 4 basis points.

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