The job market continues to contract in France. In the fourth quarter of 2025, private sector employment fell by 0,1%, representing a loss of 28,700 jobs, according to data published by Dares, the statistics department of the Ministry of Labor. This marks the fifth consecutive quarter of decline.
Over the past year, the decline has been slightly more pronounced: 40,800 jobs have disappeared in the private sector, representing a decrease of 0,2%. The negative trend that began nearly two years ago is therefore confirmed, even though employment remains significantly higher than its pre-pandemic level. Compared to 2019, the total number of salaried jobs is still up by 5,3%, representing approximately 1,1 million additional positions.
Construction and industry still in decline
In detail, most sectors recorded a decline in the fourth quarter. Manufacturing lost 3,200 jobs (-0,1%), marking its fifth consecutive quarter of decline. Construction, meanwhile, recorded its twelfth consecutive quarterly decrease, with 7,700 fewer jobs (-0,5%).
Despite this negative trend, these two sectors remain above their levels at the end of 2019: +2% for industry (+61,000 jobs) and +3,9% for construction (+58,100 jobs).
The service sector has also been affected by the slowdown. In the private sector excluding temporary work, 19,400 jobs were lost (-0,2%), while the non-profit sector saw a decrease of 12,000 jobs (-0,4%). Here again, staffing levels remain significantly higher than before the Covid-19 pandemic.
Agriculture was an exception over the quarter with an increase of 2,6% (+8,100 jobs), but over the year it showed the most marked decline in proportion (-1,2%, or 4,000 fewer jobs).
Unemployment is rising again
The gradual deterioration of the labor market is reflected in the unemployment rate. This reached 7,9% of the labor force in the fourth quarter of 2025, an increase of 0,2 percentage points over three months and 0,6 percentage points over one year. This is its highest level since the third quarter of 2021.
On the other hand, the employment rate remains stable at 69,4%, while the activity rate increases by 0,2 points to reach 75,4%, a record level since this indicator has been measured.
Recruitment tensions are easing
Another sign of the slowdown: recruitment difficulties are decreasing in most sectors, with the exception of temporary work. In January 2026, 60,8% of construction companies still reported difficulties in hiring, compared to 38,7% in industry and 30,1% in services.
Although these tensions remain high in some professions, they are now lower than the record levels observed at the beginning of 2023.
The French labor market thus appears to be entering a phase of stabilization after years of strong post-Covid recovery. The trajectory for 2026 will now depend on the pace of economic growth and the ability of businesses to revive investment and hiring.
