27 Jun 2014
French unemployment kept growing in May - ING
FXStreet (Łódź) - Julien Mancenaux from ING notes that French jobless numbers published on Thursday showed a 24.8K increase of the unemployed population, to 3.39M, despite the implementation of extended subsidized job schemes.
Key quotes
"France is at risk of seeing its unemployment rate rising again in Q2, if not enough jobs are created in June."
"With two quarters of weak growth already behind us (we expect the 0.0% GDP growth in Q1 to be confirmed this afternoon and 0.2% QoQ growth in Q2), it looks as if the reversing of the unemployment curve (an objective which has disappeared from the political vocabulary since last February) is not ready to happen as figures published by the INSEE yesterday showed."
"Since President Hollande saw the first signs of the recovery last July, the number of unemployed has increased by 3.3% (as of May 2014). Industrial production decreased by 0.2% and business sentiment in May was back at its August 2013 level."
"Nothing concrete therefore seems to be emerging from the recovery front, which is why pressure on the Valls Government should be sustained in the coming July social negotiations. Scaling back the few scheduled reforms, however, would only lengthen France’s long stagnation."
Key quotes
"France is at risk of seeing its unemployment rate rising again in Q2, if not enough jobs are created in June."
"With two quarters of weak growth already behind us (we expect the 0.0% GDP growth in Q1 to be confirmed this afternoon and 0.2% QoQ growth in Q2), it looks as if the reversing of the unemployment curve (an objective which has disappeared from the political vocabulary since last February) is not ready to happen as figures published by the INSEE yesterday showed."
"Since President Hollande saw the first signs of the recovery last July, the number of unemployed has increased by 3.3% (as of May 2014). Industrial production decreased by 0.2% and business sentiment in May was back at its August 2013 level."
"Nothing concrete therefore seems to be emerging from the recovery front, which is why pressure on the Valls Government should be sustained in the coming July social negotiations. Scaling back the few scheduled reforms, however, would only lengthen France’s long stagnation."