France's unemployment rate is expected to reach its highest level since 2019, which is expected to raise a new round of concerns about the vulnerability of the Eurozone's second-largest economy. According to the median estimate from 16 economists surveyed from July 3-8, the unemployment rate in France will reach 8.2% this year. The French economy had shown signs of weakness long before the war in Iran broke out. The unemployment rate soared to a five-year high in the first quarter, and GDP recorded its first quarterly contraction since the COVID-19 pandemic. The effects of the war and budget delays caused the French government to lower its 2026 economic growth forecast to 0.7%. Finance Minister Roland Lescure announced an additional 3 billion euros in spending cuts to fulfill the promise to reduce the deficit to 5% of GDP in 2026.

France's unemployment rate is expected to reach its highest level since 2019, which is expected to raise a new round of concerns about the vulnerability of the Eurozone's second-largest economy. According to the median estimate from 16 economists surveyed from July 3-8, the unemployment rate in France will reach 8.2% this year. The French economy had shown signs of weakness long before the war in Iran broke out. The unemployment rate soared to a five-year high in the first quarter, and GDP recorded its first quarterly contraction since the COVID-19 pandemic. The effects of the war and budget delays caused the French government to lower its 2026 economic growth forecast to 0.7%. Finance Minister Roland Lescure announced an additional 3 billion euros in spending cuts to fulfill the promise to reduce the deficit to 5% of GDP in 2026.