France, the eurozone’s second biggest economy, is still struggling with stubborn unemployment that refuses to go down. The latest figure, nine point nine percent in November rose slightly by another 19 000 to 2,704 000,confirming reports that last year’s economic recovery did not create jobs. Analysts say this means continued recovery cannot be consumer-driven, and purchasing power and spending are likely to stall.
The persistently high rate means France faces structural problems, as growth of three percent will be needed to increase the jobs market, and the Bank of France and state statistician INSEE have recently downgraded growth forecasts to just over two percent. However the Finance ministry says it is working on a two and a half percent rise.