Stable Employment Levels and Sustained Inflation Rates Mark France's Q3 2025 Economic Landscape

France's salaried employment remained stable in the third quarter of 2025, with a negligible 0.0% change, equating to a loss of 10,700 jobs, according to data from the National Institute of Statistics and Economic Studies (Insee). This follows a slight increase in the previous quarter and reflects a small year-on-year decline of 0.2%, or 54,400 jobs lost, yet overall employment still stands 5% above pre-pandemic levels from late 2019. The private sector experienced a slight contraction, with employment dropping by 0.1% this quarter and by 0.3% year-on-year, marking the fourth consecutive quarter of decline. Conversely, public sector employment grew by 0.3%, buoyed by increases in teaching and public administration jobs. Notably, contracts in alternation decreased sharply by 4.6%, impacting younger workers aged 15-29, whose employment fell by 0.7%, while employment among those aged 55 and older rose by 1.0% this quarter.

Simultaneously, France's inflation rate remains stable at 0.9% year-on-year as of November 2025, the same rate seen in October. This steadiness is attributed to a slowdown in service price increases—from 2.4% to 2.2%—and more pronounced decreases in manufactured goods prices. Energy prices fell by 4.6%, a slower decline compared to 5.6% in October, while food prices inched up slightly by 1.4%. Consumer prices declined by 0.1% month-on-month, driven by falling transport and communication service prices. The harmonized consumer price index also recorded a 0.8% yearly rise but declined 0.2% compared to October, illustrating minimal inflationary change.

Together, these figures portray an economy maintaining employment stability with muted inflationary pressures as the year draws to a close, though sectoral shifts and demographic impacts warrant continued observation.