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THE UNEMPLOYMENT RATE IN FRANCE CONTINUES TO CLIMB, HITTING 10.4% IN THE FIRST QUARTER OF 2013.

That's the highest level the country has seen since early 1998. Including French territories and islands, the unemployment rate was 10.8%, according the latest unemployment estimates from France's national statistics agency, INSEE. The French government has been struggling with a sluggish economy and rising unemployment for years. A report released last month showed French gross domestic product shrank by 0.2% in the first three months of the year, which put the country back in recession. "There are lots of internal issues that France needs to grapple with," said London-based Tom Bewick, chief economist at the International Skills Standards Organisation. "It needs to reform its labor laws so that its labor market is far more efficient." Bewick said the French state has imposed far too many regulations on the labor market, and that it's a difficult country for entrepreneurs compared to its neighbors. The latest employment figures come just days after the European Commission gave France and five other countries more time to meet budget deficit targets. The countries were given one or two-year extensions to give them time to reform labor markets, restore growth and boost government revenues. The EU's economic commissioner Olli Rehn said France should use this breathing space to focus on reducing labor costs. Unemployment in the troubled eurozone region as a whole hit a record high of 12.2% last month, according to the latest report from Eurostat. Spain and Greece are facing the highest-ever levels of unemployment -- roughly 27% in both countries. Meanwhile, France's INSEE warns that the latest French unemployment figures are only an estimate, since the agency was using some new procedures to collect and measure the data in the latest quarter. The report didn't have a breakdown of youth unemployment.

Unemployment Article In France as stated above it has an increased unemployment rate. In this case the slow or sluggish economy right now in France is what is causing its big unemployment rate. France's faltering economy shed a further 30,000 jobs in November, according to new figures released Thursday, pushing the unemployment rate to its highest level in almost 15 year. Many people are blaming the riots in France on the high unemployment rate. One more reason could be of its excessive labor regulation, which makes it very hard and expensive to fire a person. So firms will not hire unless they are 100% sure they need the extra worker. In France right now mainly the secondary sector is affected as the people in this sector are working in the factories. So because of Frances labor regulation workers are finding it hard to get jobs. Also because of unemployment it causes inefficiency in the economy and might as well disturb planning. Few years ago France also reached a state of slight deflation however at that time the government implemented the right policies to ensure that it does not go into recession. The graph above illustrates the rising trend of unemployment in the country. Although there is a few small shifts the average unemployment from 2010 is about 10% and now in 2013 its almost reaching to 11% and this is considered extremely high for an MEDC. The policies that the French government could use to boost economic growth and reduce unemployment would be fiscal policy. This will increase the inflation and in turn help the following macroeconomic objectives stated above. By decreasing income tax it can give workers more incentive to work rather reap the unemployment benefits. Also they should lessen the strict labor regulations and also lessen the amount of people immigrating as this can take away jobs from the French people.

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