Economy: Unemployment is Decreasing in France Despite the Gloomy Forecasts of Insee

This year, as France shines as the host country for the 2024 Olympic Games, the country appears to be experiencing brighter days on the economic front. Although Insee had announced a rather stable forecast, a surprise emerged: the unemployment rate unexpectedly decreased in the second quarter, bringing a glimmer of hope in an economic context otherwise darkened by less encouraging prospects.

France: An unexpected drop in unemployment

The Paris 2024 Olympics, a significant boost for the French economy? Apparently, yes. Because despite the concerns expressed by Insee at the beginning of the year, the unemployment rate in France fell to 7.3% in the second quarter of 2024. A modest decline – 0.2 percentage points compared to the previous quarter – but one that constitutes a surprise in these times of economic gloom.

The number of unemployed people as defined by the International Labour Organization (ILO) thus decreased by 40,000 people, bringing the total to 2.3 million.

That said, the job market remains fragile. Although youth aged 15 to 24 saw their unemployment rate drop by 0.4 percentage points compared to the first quarter, the situation over the year shows a worrying increase of 0.8 percentage points for this age group.

Will these young people turn to bitcoin and other cryptocurrencies while waiting for better days? The departure of ByBit from France under regulatory pressure will not help this initiative.

This contrast well illustrates the current complexity of the French job market, where favorable figures sometimes hide less glamorous realities.

Hidden figures: A mixed economy

While we welcome this decline in unemployment, it is essential to keep in mind that the French economy does not show all the signs of a resounding recovery. Insee points out that the job market is going through a period of slowdown, even though the permanent employment rate, at 52.9%, now exceeds pre-pandemic levels.

• Permanent jobs: +0.4 percentage points over one year
• Temporary/Fix-term jobs: -0.3 percentage points since 2019
• Category A job seekers: 3.01 million, down 0.4% in the second quarter

The employment landscape is therefore marked by contrasts, with a slight improvement in conditions for some workers, but stagnation or even deterioration for others.

This duality highlights the economic challenges that France still faces, despite some positive indicators.

Otherwise, don’t forget these three key dates in the August tax calendar not to miss in France: August 16 for property income declaration, August 21 for corporate tax declaration, and August 25 for payroll taxes.