French jobless rate stays at five-year high

French unemployment stood still at 10.1 per cent in February to remain at the five-year high it hit in January.

French unemployment stood still at 10.1 per cent in February to remain at the five-year high it hit in January.

France's consumer confidence index fell to minus 25 in March from a confirmed minus 23 in February, according to data from national statistics office INSEE. Analysts had expected the consumer confidence index to come in at minus 23 in March.

The downbeat jobless figures came after a raft of negative data in France and its European Union neighbours.

Germany's seasonally adjusted jobless total rose almost twice as much as expected in March to a fresh post-war high, a Federal Labour office source said yesterday.

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French Prime Minister Jean-Pierre Raffarin has promised to cut unemployment to around 9 per cent by the end of this year. Industry Minister Patrick Devedjian said today he still believed that target could be met but Labour Minister Jean-Louis Borloo expressed doubts it would be met.

Analysts have warned the government that job worries curb consumer spending - traditionally the key driver of growth in the euro zone's second largest economy.

Mr Raffarin also fears voters could register their discontent over the government's economic policies by opposing the European Union's constitution in a referendum on May 29th. Hundreds of thousands have protested against reforms in past weeks.

Mr Raffarin said on Tuesday the government was keeping its growth forecast of 2.5 per cent for this year.