France: Iran's War and Heatwave Drive Up Unemployment Rate - Sarmad
French Labor Minister Jean-Pierre Farandou stated that the rise in the unemployment rate during the last quarter was the result of the war in the Middle East and heatwaves that struck the country.
The French National Institute of Statistics and Economic Studies (INSEE) reported last week that the unemployment rate reached 8.3%, the highest level in approximately six years, up from 8.1% in the previous period.
In an interview with the newspaper Journal du Dimanche, Farandou said, “The main factor behind these figures is limited economic growth due to the war in Iran and the closure of the Strait of Hormuz, which led to higher prices for gas and fuel.”
He added, “Furthermore, there have been heatwaves and massive forest fires, which are not helping economic recovery.”
Last year, the government budget reduced funding for apprenticeship programs, sparking discontent among businesses.
However, the French minister said on this matter, “I can confirm our determination to support and strengthen apprenticeship programs; this issue was one of my priorities when preparing the 2027 budget, and I have obtained the Prime Minister’s support in this regard.”
He continued, “Measures will not be limited to maintaining unchanged the conditions for support granted to companies employing young trainees and the financing arrangements for training programs. I can also announce the allocation of additional resources for training courses that meet the needs of the strategic sectors we just discussed; sovereignty is a strong driver of employment in our country.”
Among other options proposed regarding the budget was the reduction of tax exemptions for certain domestic jobs, as clarified by the French Labor Minister.
He said, “The Ministry of Labor and Solidarity will pay close attention to all matters related to work and employment; enhancing employment, particularly formal employment, is essential. At the same time, we must exercise the utmost rigor in managing public funds, balancing these two objectives.”
He added, “We are fully committed to combating fraud related to undeclared work and training programs, including closing centers that fail to meet quality standards or misuse public financial support. We will not hesitate to support employment, but we remain steadfast in the principles of efficiency and sound financial management.”
