France’s unemployment rate rose to 7.4% at start of 2025

France’s unemployment rate increased at the start of the year, adding to signs of a slowdown in the EU’s second-largest economy, even before US trade tariffs further darkened its outlook.

The unemployment rate rose from 7.3% at the end of 2024 to 7.4% in the first quarter of 2025, matching the median forecast in a Bloomberg survey.

France’s GDP grew by just 0.1% in the first quarter of 2025, as investment declined and consumer spending stalled.

Earlier this week, the French central bank stated that the nation’s economic growth in the second quarter would remain sluggish. Back in March, the regulator projected unemployment to surge to 7.8% this year and remain at that level through 2026.

Employment across the EU rose by 0.3% compared to the previous quarter. Meanwhile, the eurozone's unemployment rate has been holding steady at a very low level of 5.9% over the past 12 months.

The eurozone's GDP grew by 0.3% in the first quarter of 2025, slightly below the expected 0.4% increase. Year-over-year, the economy expanded by 1.2%.