Informations Rapides · 19 November 2021 · n° 295

In Q3 2021, the employment rate was at its highest level (67.5%) and the unemployment rate was virtually stable (8.1%) ILO Unemployment and Labour Market-related indicators (Labour Force Survey results) - third quarter 2021

In Q3 2021, the number of unemployed people in France (excluding Mayotte) reached 2.4 million, up by 52,000 over the quarter. The ILO unemployment rate was virtually stable (+0.1 points) at 8.1% of the active population. It has been broadly stable between 8.0% and 8.1% since Q4 2020, similar to its end of 2019 level, before the health crisis. This virtual stability was the result of both strong employment and workforce growth, as in the previous quarter.

Over the quarter, the unemployment rate increased for people aged 15 to 24 (+0.3 points) and remained constant for those aged 25 to 49 and those aged 50 or more. It was significantly below its pre-crisis level (at the end of 2019) for young people (–1.2 points) and at the same level for middle-aged people (–0.1 points) and oldest people (+0.1 points).

Among the inactive people as defined by the ILO, 1.9 million wanted a job without being considered unemployed: they made up the halo around unemployment. This number declined over the quarter: –175,000 people. Among people aged 15 to 64, 4.4 % are in the halo. This share decreased by 0.4 points over the quarter and was 0.3 points below its end of 2019 level. The decrease was greater for people aged 15 to 24 (–1.2 points) than for those aged 25-49 (–0.2 points) and those aged 50 or older (–0.1 points).

Among the unemployed, 0.7 million declared being jobless and having been job seeking for at least one year. The long-term unemployment rate stood at 2.4% of the workforce in Q3 2021. It was stable over the quarter and 0.2 points above its end of 2019 level.

On average, in Q3 2021, the employment rate of people aged 15 to 64 increased by 0.5 points to 67.5%, after an already sharp increase in Q2 (+0.4 points). It stood at its highest level since INSEE measures it according to ILO’s definition (1975) and was above its pre-crisis level by 0.7 points.

Over the quarter, the employment rate rose sharply for young people (+1.2 points), more moderately for middle-aged people (+0.3 points) and oldest people (+0.3 points). Compared to their respective pre-crisis levels, the employment rate was 2.9 points up for young people (mainly due to work-study contract), 0.9 points up for older people, while it was at the same level for people aged 25 to 49.

Over the quarter, the employment rate increased slightly more for women (+0.6 points) than for men (+0.4 points).

In Q3 2021, the share of underemployment in employment fell by 1.8 points to 5.4%, after a 0.7 point drop in the previous quarter. This decrease was mainly due to people who involuntarily worked less than usual (which includes partial activity). They represented 0.5% of people in employment in Q3 2021 compared to 2.3% in Q2 2021.

The share of underemployment in employment reached an exceptional peak in Q2 2020, at 15.7% then downturned in Q3 2020. By the end of 2020, it rose again, more moderately, due to the second lockdown. For the first time since the beginning of the crisis, the share of underemployment in employment is below its end of 2019 level, by 0.5 points. The share of part-time workers wishing to work more hours and available to do so decreased compared to its end of 2019 level (–0.8 points). The share of people who involuntarily worked less than usual (which includes partial activity) is still a bit above its pre-crisis level (+0.3 points).

Overall, in Q3 2021, 18.0% of participants in the labour market (active people or in the halo around unemployment) were constrained in their labour supply, either by the absence of a job (unemployed or halo around unemployment), or in a situation of underemployment. This share fell by 2.0 points over the quarter and was below its end of 2019 level by 0.8 points.

In Q3 2021, the average number of hours worked per week and per job rose by 1.0% to 30.9 hours, following a decrease of similar size in the previous quarter. After reaching historic lows in Q1 and Q2 2020, this number rebounded in Q3 2020. However, in Q3 2021, it was still below its pre-crisis level (by –1.6% compared to the end of 2019).

The full-time employment rate stood at 55.9% in Q3 2021. It grew by 0.6 points over the quarter and by 1.2 points compared to its pre-crisis level. On the other hand, the part-time employment rate was virtually stable over the quarter (–0.1 points), 0.6 points below its pre-crisis level. As a result, the share of part-time employment in total employment slightly decreased over the quarter, by 0.3 points, at 17.8%. In Q3 2021, it stood 1.0 point below its end of 2019 level.

The permanent employment rate for people aged 15 to 64 was stable in Q3 2021, at 50.2%. It stood 0.3 points above its end of 2019 level. The employment rate on fixed-term contract or temporary work rose by 0.3 points over the quarter to 6.7%, after a 0.2 point increase in the previous quarter. After an unprecedented fall in Q2 2020 (–1.2 points), it had partially recovered as soon as Q3 2020. In Q3 2021, it was 0.6 points below its all time high (end of 2017) and almost at its pre-crisis level (–0.1 points compared to the end of 2019).

The activity rate of people aged 15 to 64 went up by 0.6 points quarter-to-quarter, to 73.5%, after a 0.4 point increase in the previous quarter. It stood at its highest level since INSEE measures it according to ILO’s definition (1975) and exceeded its pre-crisis level by 0.7 points. The activity rate fell in 2020 as a result of people withdrawing from the labour market into inactivity because of sanitary restrictions. These people were most of the time accounted for in the halo around unemployment, which reached an exceptional peak in Q2 2020, and fell afresh this quarter to its lowest level since Q2 2019.

Over the quarter, the activity rate rose sharply for young people (+1.8 points), more moderately for those aged 25 to 49 (+0.4 points) and those aged 50 to 64 (+0.2 points). Compared to the end of 2019, it was clearly up for young people (+3.2 points) and those aged 50 to 64 (+1,0 point), but virtually stable for 25-49 people (–0.1 points).

In Q3 2021, the share of young people aged 15 to 29 neither in employment nor in education or training (NEET) went down by 1.0  point to 11.6%, due to the increase in youth employment. It stood 0.8 points below its pre-crisis level, at its lowest level since Q4 2008.

Compared to the first estimate published on August 13, 2021, the unemployment rate for the second quarter of 2021 was unchanged at 8.0 %.

The employment rate was revised upwards by 0.1 points to 67.0% and the activity rate was revised upwards by 0.2 points to 72.9%, due to the updating of seasonal adjustment coefficients.

The next publication, relative to Q4 2021, is scheduled for 18 February 2022 at 7:30 am.