French Unemployment Rate Hits 37-Year Low

Data from the National Institute of Statistics and Economic Studies in France showed that unemployment in the country fell to its lowest level in 37 years during Q2, as a downward trend that continued for several years was exacerbated by the general isolation measures imposed to confront the Coronavirus, which made people unable to look for work.

The unemployment rate fell to 7.1% from 7.8% in Q1, dropping to the lowest level Q2 of 1983 when it reached 7%.

The institute warned that the data for Q1 and Q2 of 2020 were affected by the general isolation measures between mid-March to mid-May, which reduced the number of those who are classified as unemployed as it made it impossible to look for work.

The International Labor Organization defines an unemployed person as a person who is not working but is ready to work and is looking for a job, which was virtually impossible in most sectors during the general isolation.

“The sharp drop in unemployment in the Q2 of 2020 is not the result of an improving labour market but is an effect of the lockdown,” INSEE said.

This is the highest level since the institute began measuring this statistic in 2003 and the main reason for the decline in the unemployment rate in the second quarter.