Unemployment hits 10-year high

THE NUMBER of people out of work has reached a 10-year high, new official figures have revealed.

National statistics body Insee says unemployment in the last quarter of 2009 stood at 2.7 million - its highest level since 1999.

This represents 9.6% of the total population of working age - a figure that rises to 10% if the French overseas territories and departments are included.

Insee found a growing number of men out of work - for the first time, unemployment levels are equal for both men and women. Young people were also hit, with 24% of 15 to 24-year-olds out of work.

According to European research body Eurostat, unemployment in mainland France passed the 10% barrier in January - this should be confirmed by Insee in the coming months.

Budget Minister Eric Woerth said recently that he did not expect jobless figures to start falling again until at least the second half of this year.

Nicolas Sarkozy yesterday promised a series of loans to small and medium-sized businesses that invest at least €5m in growth and create at least 25 new jobs.

He announced the measures as part of a plan to increase French industrial output by 25% between now and 2015.

Sarkozy criticised the 35-hour working week, which was designed to create extra jobs but which he said had "destroyed French industry".

Since coming to power his government has passed legislation allowing business to circumvent the 35-hour limit.

Michael Nivelet - Fotolia.com