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French Minister Sees Mix Of Good, Bad Months For Jobs In 2010



PARIS -(Dow Jones)- It is too soon to declare the economic crisis is over, as employment remains in the grip of a downward trend despite a return to economic growth, France's employment minister said Thursday.

"We haven't exited the crisis," Laurent Wauquiez said in an interview with French radio station Europe 1, saying the crisis is human and social in scope.

The minister made his comments just after the government reported that the number of people in France who are unemployed and actively looking for work rose 2% in October from the previous month to 2,627,300.

That was fourth straight monthly jobless rise and extends a yearlong trend that was interrupted briefly in June.

While conceding October was a poor month for the labor market, Wauquiez said there will be more bad months, especially in 2010, mixed with some good ones.

He wasn't more specific and didn't forecast when the employment trend will change for the better.

After contracting for several quarters, the French economy started growing in the second quarter by 0.3%, with gross domestic product expected to expand modestly through next year. Prime Minister Francois Fillon has forecast GDP growth next year will exceed 1%, after contracting 2.25% in 2009.

Earlier Thursday, Finance Minister Christine Lagarde reiterated that it will take several quarters before the labor market improves, noting employment tends to lag a recovery in the overall economy. Economists say the lag could be 12 to 18 months.

-By A.H. Mooradian, Dow Jones Newswires; +33 1 4017 1740; art.mooradian@ dowjones.com


  (END) Dow Jones Newswires
  11-26-091347ET
  Copyright (c) 2009 Dow Jones & Company, Inc.

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