By Vicky Buffery
PARIS, Sept 2 (Reuters) - France's unemployment rate fell in the second quarter of 2010, data on Thursday showed, offering encouragement to the government as it faces widespread discontent over planned budget cuts and pension reforms.
National statistics office INSEE said the quarterly jobless rate in all of France, including overseas territories, declined to 9.7 percent in the second quarter from an unrevised 9.9 percent in the first quarter.
Coming ahead of nationwide protests next week over the government's plans to reform its heavily-indebted pay-as-you-go pension system, the data offered some hope of a boost in consumer confidence that may help to calm current anxieties.
In addition to worries about pensions, cash-strapped consumers are also bracing for a string of budget cuts to be announced later this autumn as the government strives to rebalance its ailing finances.
But while the jobless rate in mainland France also fell to 9.3 percent in the second quarter from 9.5 percent in the previous quarter, unemployment is still well above pre-financial crisis levels of around 8 percent.
The data also contrasted with recent figures from Germany, the euro zone's largest economy, which showed that unemployment fell to 7.6 percent in August, its lowest level since November 2008.
'It's the make-up of employment that's worrying,' said Alexander Law, an economist at Paris-based consultancy Xerfi.
'You've got less and less long-term permanent contracts, more and more temporary contracts, which goes to show how the labour market has been weakened, and the outlook for companies is still quite uncertain,' he said.
Thursday's data showed the proportion of people on fixed-term or temporary contracts rose over the period to 6.6 percent from 6.4 percent in the first three months of the year, while the rate for permanent contracts fell to 49.0 percent from 49.3 percent in the first quarter.
INSEE said a total of 3.3 million people in metropolitan France wanted to work but did not have a job.
France does not produce a monthly jobless rate. However, the latest data from the European Union statistics office showed that French unemployment remained unchanged at 10.0 percent in July compared with June.
(Reporting by Vicky Buffery; editing by Bate Felix and Patrick Graham) (vicky.buffery@thomsonreuters.com; +33 1 49495188; Reuters Messaging: vicky.buffery.thomsonreuters@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
PARIS, Sept 2 (Reuters) - France's unemployment rate fell in the second quarter of 2010, data on Thursday showed, offering encouragement to the government as it faces widespread discontent over planned budget cuts and pension reforms.
National statistics office INSEE said the quarterly jobless rate in all of France, including overseas territories, declined to 9.7 percent in the second quarter from an unrevised 9.9 percent in the first quarter.
Coming ahead of nationwide protests next week over the government's plans to reform its heavily-indebted pay-as-you-go pension system, the data offered some hope of a boost in consumer confidence that may help to calm current anxieties.
In addition to worries about pensions, cash-strapped consumers are also bracing for a string of budget cuts to be announced later this autumn as the government strives to rebalance its ailing finances.
But while the jobless rate in mainland France also fell to 9.3 percent in the second quarter from 9.5 percent in the previous quarter, unemployment is still well above pre-financial crisis levels of around 8 percent.
The data also contrasted with recent figures from Germany, the euro zone's largest economy, which showed that unemployment fell to 7.6 percent in August, its lowest level since November 2008.
'It's the make-up of employment that's worrying,' said Alexander Law, an economist at Paris-based consultancy Xerfi.
'You've got less and less long-term permanent contracts, more and more temporary contracts, which goes to show how the labour market has been weakened, and the outlook for companies is still quite uncertain,' he said.
Thursday's data showed the proportion of people on fixed-term or temporary contracts rose over the period to 6.6 percent from 6.4 percent in the first three months of the year, while the rate for permanent contracts fell to 49.0 percent from 49.3 percent in the first quarter.
INSEE said a total of 3.3 million people in metropolitan France wanted to work but did not have a job.
France does not produce a monthly jobless rate. However, the latest data from the European Union statistics office showed that French unemployment remained unchanged at 10.0 percent in July compared with June.
(Reporting by Vicky Buffery; editing by Bate Felix and Patrick Graham) (vicky.buffery@thomsonreuters.com; +33 1 49495188; Reuters Messaging: vicky.buffery.thomsonreuters@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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