French property prices remain stable as unemployment drops

POSITIVE employment figures will undoubtedly continue to keep French property prices stable.

The French unemployment rate has fallen in the first quarter of 2008 to 7.2%, its lowest since 1983.

New figures out today indicate that the rate fell from 7.5% in the last quarter of 2007. In comparison, the number of unemployed was 8.4% in the first three months of 2007.

Christine Lagarde, the French Minister for the Economy, said "Despite the difficult economic situation internationally, thanks to more liberal work reforms, modernisation of the employment service and increased support for international business competitiveness, the French economy is creating jobs.

Lagarde's objective is to reduce unemployment to 5% by 2012.

Economists have reacted to the news by stating that the fall in unemployment comes as no surprise insofar as France's economy grew by a better than expected 0.6% in the first three months of this year.

They agree that there will be a stabilisation in the unemployment rate in 2008. Lagarde said "we're going in the right direction and the downward trend [in unemployment figures] will continue."

(REUTERS - Paris)