France's unemployment rate fell in the second quarter of 2010, data today showed, offering encouragement to the government as it faces widespread discontent over planned budget cuts and pension reforms.
National statistics office INSEE said the quarterly jobless rate in all of France, including overseas territories, declined to 9.7 per cent in the second quarter from an unrevised 9.9 per cent in the first quarter.
Coming ahead of nationwide protests next week over the government's plans to reform its heavily-indebted pay-as-you-go pension system, the data offered some hope of a boost in consumer confidence that may help to calm current anxieties.
In addition to worries about pensions, cash-strapped consumers are also bracing for a string of budget cuts to be announced later this autumn as the government strives to rebalance its ailing finances.
But while the jobless rate in mainland France also fell to 9.3 per cent in the second quarter - from 9.5 per cent in the previous quarter - unemployment is still well above pre-financial crisis levels of around 8 per cent.
The data also contrasted with recent figures from Germany, the euro zone's largest economy, which showed that unemployment fell to 7.6 per cent in August, its lowest level since November 2008.
Today's data showed the proportion of people on fixed-term or temporary contracts rose over the period to 6.6 per cent from 6.4 per cent in the first three months of the year, while the rate for permanent contracts fell to 49 per cent from 49.3 per cent in the first quarter.
INSEE said a total of 3.3 million people in metropolitan France wanted to work but did not have a job.
France does not produce a monthly jobless rate. However, the latest data from the European Union statistics office showed that French unemployment remained unchanged at 10 per cent in July compared with June.
Reuters