Private sector employment in France ended 2025 on a negative note, despite what was considered a resilient economic climate. According to a preliminary estimate published by INSEE on Friday, 28,700 jobs were lost in the fourth quarter of 2025 (-0,1%), a level close to that of the previous quarter.
Over the whole year, the picture is clearer: private sector employment fell by 0,2%, representing 40,800 jobs lost between the end of 2024 and the end of 2025. This decline confirms a reversal of the trend after several years of net job creation, and could constitute a fifth consecutive quarter of decline, subject to final confirmation of the figures.
Industry, construction and temporary work: the sectors that are dragging things down
The decline is mainly due to the deteriorating dynamics in several key sectors. In industry (excluding temporary work), employment fell by 0,4% year-on-year, representing a loss of 13,100 jobs, in a context where more factories closed than sites opened.
The construction sector also continued its decline: down 0,2% in the fourth quarter (3,100 jobs lost) and down 1% year-on-year, representing 15,800 job losses. As for temporary employment, often seen as a leading indicator of the labor market, it stabilized at the end of the year but is projected to decline by 1,1% by 2025, representing 69,500 job losses.
The job market is still above 2019 levels, but unemployment is rising again.
The INSEE (National Institute of Statistics and Economic Studies) points out, however, that private sector employment remains well above its pre-pandemic level: +5,3% compared to 2019, representing approximately +1,1 million jobs. But this high level masks a gradual decline since 2024.
Meanwhile, unemployment indicators are deteriorating: the latest data from France Travail and Dares suggest a cyclical increase, with approximately 40,000 additional registered job seekers in category A (excluding reform effects), a sign of a labor market that is starting to tighten again.
