French Unemployment Rate Rises to 7.9% in Q4 2025, Despite Long-Term Economic Improvements

The unemployment rate in France reached 7.9% in the fourth quarter of 2025, marking an increase from previous levels. Yet, this rise occurs against a backdrop of broader economic improvements and a declining trend in long-term unemployment over the past decade.

Recent Increase in Unemployment

According to data released by the National Institute of Statistics and Economic Studies (Insee), the unemployment rate stood at 7.9% in Q4 2025, a 0.2 percentage point increase over the quarter and a 0.6 percentage point increase year-over-year [Insee]. This translates to 2.5 million unemployed individuals in France, excluding Mayotte, an increase of 56,000 over the quarter [Insee].

Long-Term Trends and Economic Context

Despite the recent uptick, the current unemployment rate remains below its peak of 10.5% recorded in mid-2015 [Insee]. This decline has been supported by sustained economic growth, facilitated by the monetary policies of the European Central Bank.

Positive Indicators in the French Labor Market

• Decline in Part-Time Work: The number of individuals working part-time but desiring full-time employment has decreased significantly in France, with only Greece experiencing a more substantial reduction.
• Job Creation: Over the past ten years, 2.3 million jobs have been created in France.
• Permanent Employment: The proportion of permanent employment contracts has reached record highs.
• Hours Worked: The average number of hours worked per job has remained stable.
• Activity Rate: The activity rate, representing the percentage of the population aged 15-64 actively employed or seeking employment, reached a record high of 75.4% at the end of 2025 [Insee].

Long-Term Unemployment

While specific data for France was not available in the provided sources, U.S. Data from August 2025 indicates that long-term unemployment (jobless for 27 weeks or more) accounted for 25.7% of all unemployed people, the highest percentage since February 2022 [BLS].

Conclusion

The French labor market presents a mixed picture. While the unemployment rate has recently increased, long-term trends indicate improvements in employment quality, job creation, and labor force participation. Continued monitoring of these indicators will be crucial to understanding the future trajectory of the French economy.