French jobless total remains high

Economic growth has picked up this year

French unemployment stayed stubbornly high in May, but there are signs that the situation could improve in the months ahead.

The country's unemployment rate remained steady at 9.1% in May, according to the International Labour Organisation (ILO).

But the labour market is unlikely to deteriorate as the economy grows faster than other European Union countries in the months ahead, according to predictions from the national statistics office INSEE.

Growth has accelerated this year from 0.4% during the first three months to 0.8% during the April to June quarter, INSEE observed.

"With a progressive pickup in investment, growth could reach an annual rate of 2.5% at the end of the year," it said.

The statistics backed comments by economy and finance minister Francis Mer on Thursday who predicted that economic growth for the year could reach 1.4%.

"That should enable France to respect its European commitments" of balancing its public finances, he said.

The French government has said it would target 3% growth in 2003.

This target was not "incompatible" with INSEE's own predictions, the national statistics office said.