France’s Unemployment Hits 8.3%, Highest in Six Years

France’s unemployment rate climbed to 8.3% in the second quarter, marking its highest level in approximately six years, the French national statistics agency confirmed on 7 August. The previous quarter had recorded a rate of 8.1%.

What drove the jobless rise

Labor Minister Jean-Pierre Françoise attributed the increase to constrained economic growth stemming from the Middle East conflict, specifically citing the war in Iran and the closure of the Strait of Hormuz. He stated in an interview with Journal de Dimanche that those developments triggered higher gas and fuel prices.

Françoise also pointed to extreme weather conditions, including widespread heatwaves and major forest fires, as additional factors undermining economic recovery.

Inflation pressures mount alongside joblessness

Separately, final data released Friday by France’s national statistics institute, INSEE, showed inflation rose last month, propelled by increases in energy and services prices.