Unemployment in France increased by 7.5% in 2020

The number of unemployed people rose by 7.5% in 2020 despite a 2.7% drop in the fourth quarter, according to figures published Wednesday by the French labour ministry’s department.

While more than 3.5 million people on average were unemployed during the fourth quarter of 2020, more than 2.1 million were in reduced activity and also searching for work.

The fall in the unemployment rate during the final three months of 2020 can largely be explained by the state’s renewal of guaranteed loans and its coverage of the partial activity of employees. These state subsidies made it possible to maintain jobs and avoid the closure of certain companies.

“As long as the crisis makes it necessary, we will protect jobs with partial activity,” Labour Minister Elisabeth Borne told RTL, specifying that this was a “priority”. “There is no doubt that ‘whatever it costs’ will last as long as the crisis requires”, she added.

The fourth rectifying finance bill for 2020, enacted at the end of last November, provided €34 billion to ensure the partial activity is covered. (Louise Rozès Moscovenko  | EURACTIV.fr)