The headline number of jobseekers rose by 29.9k (1.1% m/m) in November, broadly in line with what we have seen in the previous two month (30.2k on average). Unemployment has reached the highest level (2,844.8k) since December 1999.

In our view, employment could continue to drop in Q4, in line with our forecast for a drop in GDP growth, as a result of the extreme cautious behaviour of businesses. We don't see leeway for any major improvement so long as the risk of a systemic shock will be present.
 
In parallel, according to the French statistical office, the gross debt-to-GDP stands at EUR1,689bn from EUR1,693bn in Q2, or 85.3% of GDP, down from a record high of 86.2% of GDP reached in Q2 . This print remained well above the 84.9% of GDP that the government has forecast for the whole of 2011.


source: BarCap