French jobless rate holds steady

France's jobless rate held steady at a five-year low of 8

France's jobless rate held steady at a five-year low of 8.8 per cent in October, its downward trend pausing after economic activity ground to a halt in the third quarter, data showed today.

Prime Minister Dominique de Villepin's government, which is intent on flagging its success in cutting unemployment before presidential and legislative elections in 2007, insisted the best was not past for the labour market.

"The stabilisation in October does not call into question the durable nature of the decline in unemployment in the past 21 months," the Labour Ministry said, noting the context of weaker economic activity.

Mr Villepin said the government would keep up efforts to cut jobless queues further, and the Labour Ministry struck a hopeful note on growth.

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"Most forecasters expect a marked rebound in activity in the fourth quarter which should see growth of between 2.0-2.1 per cent over 2006 as a whole," it said. That would be towards the bottom of the government's official forecast of 2.0-2.5 per cent.