France Labor Market Cools as Nonfarm Payrolls Contract Again

France's labor market has continued to show signs of cooling down, with nonfarm payrolls remaining unchanged at -0.1% quarter-on-quarter in the second quarter of 2025.

This marks the second consecutive quarter of negative growth for France's employment outside the agricultural sector, according to data from INSEE.

The decline was driven primarily by a slowdown in construction and manufacturing sectors, while services remained relatively stable.

With unemployment hovering around 7.3%, any sustained payroll decline could reignite debates over labor reforms and competitiveness.