France's unemployment rate has climbed to a four-year high, signaling a cooling labor market and raising concerns about the economic prospects for young workers. The unemployment rate reached 7.9% in the final quarter of 2025, exceeding market expectations of 7.8% and marking the highest level since late 2021.

The rise in joblessness is particularly acute among young people. The unemployment rate for those aged 15-24 surged by 2.4 percentage points to 21.5%. The broader 15-29 age bracket also experienced an increase, with unemployment rising by 0.5 percentage points to 16.0%. This highlights the challenges faced by young individuals entering the workforce or seeking stable employment.

In contrast to the rising unemployment among young people, older workers experienced more stability. The unemployment rate for those aged 25-49 saw a slight improvement, falling by 0.2 percentage points to 6.9%. For workers aged 50 and older, the unemployment rate remained steady at 5.1%.

The overall number of unemployed individuals in France grew by 56,000, reaching 2.5 million. While this is a significant increase of 0.6 percentage points year-over-year, the current rate remains 2.6 points lower than the peak levels seen in 2015.

Despite the increase in unemployment, other indicators suggest that the French labor market remains active. The employment rate for the 15-64 age group held firm at 69.4%, hovering near historic highs. Full-time employment remained stable at 57.5%, while part-time roles saw a modest increase to 11.8%. The activity rate, which measures the proportion of the population that is either employed or actively seeking work, reached 75.4%, its highest level since records began.

The rise in unemployment has not affected men and women equally. Female unemployment dipped slightly to 7.6%, while male unemployment rose to 8.1%.

Experts suggest a combination of factors may be contributing to the rise in unemployment, including a slowing economy and increased caution among companies in an uncertain international environment. The Banque de France expects the unemployment rate to continue to rise, reaching 7.8% in 2025 and 2026. The Sciences Po University Economic Research Center (OFCE) predicts a more pessimistic increase to 8.5% by the end of 2026. The OFCE estimates the loss of nearly 200 jobs between 2025 and 2026, due to weak growth, the reduction of employment policies, and the high number of bankruptcies.

The French labor market is showing signs of slowing down, with fewer opportunities for job seekers. Sectors such as healthcare, cleaning, and catering continue to hire, but competition among candidates has intensified for office jobs. The number of offers for IT developers has fallen. France Travail has observed a reduction in hiring intentions, returning to pre-pandemic levels.