Crisis-hit France sees new high with its unemployment rate in the month of July, as shown by official statistics on Wednesday. This is yet another blow in President Francois Hollande’s political career. According to the labor ministry, there were 3.424 million unemployed individuals, an increase of around 26,000. This increase is reported to be the 9th consecutive rise according to the monthly unemployment figures.
As per the statement by Francois Rebsamen, the Labor Minister, this negative increment reflects no growth in France and in the Eurozone. France is one of Europes biggest economies (precisely the second biggest economy) and the county is hit by economic and political crisis.
President Franocois Rebsamens Promise
This crisis is considered to be the worst ever since President Francois Hollande took power a couple of years ago. President Hollandes promise to bring down unemployment remains unfulfilled as growth has come to a halt within the first 6 months of the year.
In one of his most popular Responsibility Pact, the president proposes to reduce social business charges by £40 billion, in return for creating 500,000 jobs by the end of 2017. Knowing the state of debt and deficit of France, public-spending cost reduction can finance up to 50 billion in Euros. However, this strategy has raised a rebellion in the left flank of the ruling Socialist Party of Hollande.
Armaud Montebourg, the former economy minister made a broadside of the austerity policies in his own administration. This in turn has promoted the prime minister to offer the governments resignation and make upon an urgent reshuffle.
According to analysts, France needs to speed up its growth at least by 1% in order to begin finding a solution for the big slice in employment. In 2014 alone, the government reduced growth target by 0.05% because of weak economic activities domestically and in the doorsteps of Europe.
More details on the Weak Employment Rate
Unemployment rates in France grew by 10.1% in the 1 Quarter of 2014 and there was a drastic increase in jobless claims. This is a negative development especially after a stabilized record in the 4 quarter of 2013. The second quarter unemployment rate will be reported by the national statistics institute on the 4 of September 2014.
Hollande has also jettisoned the idea of short-term reversals in jobless rates. Many officials believe that unemployment is set to climb high by 2015 as the years growth reached 0.5% at best.
In the month of July alone, unemployment rates grew across all age groups. Unemployment grew by 0.7% for the age group below 25, for those aged between 25-49 – 0.8% and those 50 and above – 0.7%, as reported by the ministry.
An advanced measure of job seekers (including those in the part-time employment category) increased by 0.8%, approximately 40,600 in the month of July. On the whole, 43% or of 2.171 million have been jobless for at least one year. Add to it, at least 495,600 havent been working for two years.
These statistics are definitely alarming and is a sign of concern not only for France, but the whole of Europe. President Francois Hollande has a job on hands and the challenge may not come to an end very soon.
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