Rampant jobless claims put Hollande on back foot

Xinhua

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In 2013, French President Francois Hollande said he aimed to reduce unemployment by the year end. However, record high in jobless claims reflect broken promises and have further fuelled public anger.

In 2014, the Socialist leader vowed to stabilize the unemployment rate below 10 percent and work towards less than 3 millions of jobless people by the end of his mandate in 2017.

He tried to stimulate hiring by offering companies a 30 billion euros (37.44 billion U.S. dollars) cut in payroll charges, improving training, facilitating recruitment rules and pumping millions of euros to finance jobs contracts in the public sector.

These measures offered a glimmer of hope for the unpopular president at the end of August. The Labor Ministry's monthly data showed job claims inched down by 0.3 percent from July's record high to 3.41 million unemployed people.

But the Socialists' policies have yet to yield sustainable results as 19,200 more jobseekers were recorded last month, underscoring the challenges Hollande faces over his promise to create jobs and revive an anemic labor market.

An Odoxa poll released Monday showed 97 percent of respondents believed Hollande failed to reverse the alarming rise in unemployment and 88 percent said he was unable to restore French public finances.

According to a recent ifop survey, 62 percent of French people want Hollande to step down with 23 percent of the Socialist supporters calling for his resignation.

"It's a bad situation for Hollande. Despite unveiling a series of measures, unemployment continued to increase due to a sluggish economy and lack of structural reforms that hamper creation of jobs in promising sectors," Nicolas Bouzou, director of Asteres consultants, told Xinhua.

With his economic credibility on the line, the French president is likely to see fresh economic data pouring cold water on his plans to reverse a long increase in joblessness.

Inflation fell 0.3 percent in September from a year ago, the lowest level since 2009 which means fewer orders, falling output and fewer opportunities to create jobs.

Furthermore, the European Commission in its latest forecast predicted a wider budget gap, wane growth and higher unemployment till 2016 in France.

In a further sign that gloomy days are not over, Hollande's hope to accelerate growth by 1 percent this year was dashed due to feeble economic activity at home and in Europe.

Looking to 2016, the government aims for 1.7 percent GDP growth and a further 2 percentage points by the end of their mandate in 2017.

"Let's be honest -- we failed in reducing unemployment," Francois Rebsamen, Labor Minister, told the daily Le Parisien.

"Without strong growth, there won't be creation of enough jobs, " he added.

Elected in May 2012 on pledges of creating more jobs and promoting the ailing economy, Hollande is suffering a record low 13 percent approval rating.

In an attempt to appease voters and ease public discontent, the president will appear on TV on Thursday to justify his midterm policy. "I will fully and concretely fulfill my mandate, without worrying about my popularity because it's not my goal. My goal is that my duty is done in the interest of France and in the values that are mine. I'll do anything to achieve that at the end of my term," the French head of state said during a recent press meeting. Enditem