Economy: a "remarkable" drop in unemployment in France

In an economic study, BNP Paribas estimates that the sharp drop in the unemployment rate in France in the first quarter of 2017 (-0.4 point, to 9.6% of the active population) is remarkable in more than one way. "It confirms and amplifies the decline since mid-2015, which now reaches nearly 1 point," the study said. "Finally, the unemployment rate is well below 10%, and it is at its lowest level in five years."

BNP Paribas explains that such dynamics are rare. "In the past, it was only observed in periods of strong growth, such as in 2000 or 2006-2007. Today, however, we cannot state that French growth is strong," continues the study . Other indicators point to a more balanced picture: the long-term unemployment rate fell by only 0.1 point over the quarter and by 0.2 point over one year (to 4.1% Of the working population); Underemployment is stable (at 6.2% of employed persons); The halo around unemployment remains on the rise.

"If it is gradual, the improvement of the situation on the unemployment front should however continue," adds BNP Paribas. "The outlook for growth and jobs is good, and in the second quarter they seem even better than the first, judging by the May recovery of business climate surveys (+ 1 point, 105) and employment (+2 points, to 108) ".

Source (IN FRENCH): https://www.boursedirect.fr/fr/actualites/categorie/economie/economie-une-baisse-remarquable-du-chomage-en-france-boursier-4e251729d35f5a240dfb16b44f718b32f5b3d453