French unemployment will rise in 2003 as growth is set to fall short of the level needed to sustain job creation for the second consecutive year, French Labour Minister Mr Francois Fillon said today.
Mr Fillon told Europe 1 radio the jobless rate was set to rise based on an official forecast of 1.3 per cent economic growth in 2003, versus 1.2 per cent in 2002.
The centre-right government yesterday announced it would increase the number of state-subsidised jobs to counter the rising joblessness trend.
"Given our employment policy and the rigidities of our market, we need growth of at least 1.5 per cent for France not to lose jobs, so at 1.3 per cent, naturally, unemployment is going to increase," Mr Fillon said.
Finance Minister Mr Francis Mer forecast on Monday the jobless rate would rise to 9.5 per cent in the coming months as firms freeze hiring amid an economic slowdown and uncertainty linked to a possible war in Iraq.
The French jobless rate stood at 9.1 per cent in January, the latest month for which figures are available, representing an increase of 0.3 percentage points year-on-year. The total number of unemployed stood at 2.7 million.