The number of people seeking jobs in France declined by 3.6% in Q4 last year to 3.05 million, a low not seen since 2011.

However, the central bank has cautioned unemployment may rise once again this year.

Throughout last year, the number of job seekers fell by 9.3%, as per the latest data published by France’s labour ministry this week. The 3.6% decline in the fourth quarter indicates 114,400 people have moved out of unemployment over the last three months.

In terms of those working part-time but seeking more work, the overall fall in job seeker numbers stands at 0.8% over the past quarter and by 5.1% over the whole year, Euractiv reports.

The fall in those seeking employment is especially significant for people aged between 18 and 25, hitting 9.8% and the over-50s with an 8.9% drop.

The national unemployment rate in France was 7.3% in Q3 last year, according to the national statistics organisation. Whereas the rate for the final three months of 2022 as a fraction of the active workforce has not as yet been announced.

The employment rate in the eurozone was 6.5% in November, an all-time low, the report adds.

However, despite the fall in unemployment, the Bank of France warned that lagging economic growth could drive the unemployment rate up to 7.5% and 8.2% in 2024, within its 2023 macroeconomic projections.

President Emmanuel Macron set a 5% unemployment target by the time his term ends in 2027. 

This comes at a time of structural economic reforms in the country aimed at unemployment benefits and the pension system.

From the beginning of next month, should the unemployment rate drop under 9%, the duration for which job seekers can receive benefits will fall by 25%. In addition, pension reforms are underway, which would see the minimum retirement age rise to 64 from 62.