More than one million demonstrators poured onto France's streets, and strikers disrupted transport services in the largest nationwide protests so far against a new law that will make it easier to fire young people.
Prime Minister Dominique de Villepin held firm, but cracks opened in his conservative government as pressure for him to withdraw the contested measure reached unprecedented heights, with unions, students and the leftist opposition joined in solidarity, and more violence erupting on the streets of Paris.
Interior Minister and presidential hopeful Nicolas Sarkozy, in a clear break with Mr Villepin, suggested suspending the new type of job contract for youths to allow for negotiations.
With the government in crisis, President Jacques Chirac cancelled a trip planned for later in the week to stay in Paris.
Students and labour unions say the proposed job contract is a first step toward eroding France's cherished workplace protections. Set to take effect next month, it would let companies fire employees aged under 26 without reason in the first two years on the job.
The contract, meant to entice employers to hire less qualified youths, would supplement a six-month contract widely offered to those starting out in the job world. Despite the huge marches, Mr Villepin held firm.
He told the French parliament that he was open to talks on employment and possible changes to the contract but did not say that he would withdraw it.
"Only in action will we convince all of the French that tomorrow can be better than today," he said, loudly heckled by opposition politicians.
Mr Villepin says the greater flexibility will encourage companies to hire young workers, who face a 22 per cent unemployment rate — the highest in Western Europe. But as protests have grown, his government — and chances of running for the presidency next year — have appeared increasingly fragile.
Sarkozy, the interior minister also gunning to be the conservative camp's presidential candidate, told a meeting of lawmakers from the governing UMP party that the contract should not go into force to allow for talks to resolve the crisis, his aides said.
Mr Villepin's sputtering effort at reform underscores the dilemma facing many countries in Europe that have expensive job protections and social safety nets under threat by competition from fast-rising Asian economies with cheaper, less protected workers.
AP