French consumer morale worsened in October and the unemployment rate remained at 9.9 per cent in September, official figures showed today.
The Labour Ministry said the number of unemployed in France, adjusted for seasonal variation, fell by 17,000 or 0.6 per cent in September month-on-month, according to data based on International Labour Organisation (ILO) criteria.
Economists say consumers' concerns about France's persistently high jobless rate - which is far above the euro zone average - risk weighing on household spending, the traditional driver of growth in France.
In separate data issued on Friday, national statistics office INSEE said French consumer confidence worsened to minus 19 in October from minus 17 in the month before.
French household spending proved strong in the first half of the year, with the French proving much more willing to spend than many of their European neighbours.
But French shoppers became more cautious in the third quarter of this year, with consumer spending slipping 0.7 per cent after surging 1.5 per cent in the previous three months.
The dip in consumer confidence followed data on Thursday - which raised hopes of a strengthening recovery in France, showing French business confidence rose in October to its highest level since March 2001, despite soaring oil prices.
But economists said firms' confidence had not yet turned into stronger job creation.
The French economy grow at a stronger-than-expected pace of 0.8 and 0.7 per cent in the first and second quarters respectively, bolstered by solid household spending.
Prime Minister Mr Jean-Pierre Raffarin has stuck to the government's growth target of 2.5 per cent this year despite the high oil prices. He said he expected employment to improve significantly next year.