Informations Rapides · 18 February 2022 · n° 38

In Q4 2021, the unemployment rate decreased by 0.6 points to 7.4% ILO Unemployment and Labour Market-related indicators (Labour Force Survey results) - fourth quarter 2021

In Q4 2021, the number of unemployed people decreased by 189,000 over the quarter, and reached 2.2 million people. The ILO unemployment rate in France (excluding Mayotte) fell by 0.6 points at 7.4% of the active population. Over the four previous quarters, it remained virtually stable between 8.1% and 8.0%. It was below its pre-crisis level (at the end of 2019) by 0.8 points, and stood at its lowest level since 2008, with the exception of the “trompe-l’oeil” fall in the spring of 2020 due to health-crisis.

Over the quarter, the unemployment rate fell sharply for people aged 15 to 24 (–3.6 points) and stood at 15.9%, reaching the lows of late 1980s and 1990s. It decreased by 0.3 points for middle-aged people to 6.8%, and was stable for oldest people at 5.8%.

Over the quarter, the unemployment rate decreased slightly more for women (–0.8 points) than for men (–0.4 points), whereas the previous quarter gap was in the opposite direction. Overall, the unemployment rate fell by 0.8 points compared to its pre-crisis level both for men and women. In Q4 2021 it stood at 7.3% for women and at 7.5% for men.

Among the inactive people as defined by the ILO, 1.9 million wanted a job without being considered unemployed, because they either do not seek a job or are not immediately available: they made up the halo around unemployment. This number bounced back moderately over the quarter: +48,000 people, after a strong decrease in the previous quarter (–187,000). Among people aged 15 to 64, 4.5% are in the halo. This share was virtually stable (+0,1 point) over the quarter and below its end of 2019 level by 0.2 points. The rebound over the quarter was mainly due to young people:  the share of halo in the 15-24 years old population rose by 0.5 points, while it was virtually stable for both those aged 25-49 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 decreased by 0.2 points over the quarter, to 2.2% of the active population. It thus returned to its pre-crisis level.

On average, in Q4 2021, the employment rate of people aged 15 to 64 increased by 0.2 points to 67.8%. It was thus overtaking its all time high of the previous quarter.

Over the quarter, the employment rate rose for all ages. It grew by 0.4 points for those aged 15-24, after a 1.2 point increase in the previous quarter, and stood at 33.8%, its highest level since 1991. For those aged 25-49, it rose by 0.3 points to 82.3%, and reached its highest level since early 2009. Finally, for those aged 50-64, the employment rate was virtually stable quarter-to-quarter (+0.1 points) at 65.5%, its highest level since INSEE measures it (1975).

In Q4 2021, the share of underemployment in employment decreased by 0.2 points to 5.1%, after a sharp drop in the previous quarter (–1.9 points). The share of underemployment in employment stood 0.8 points below its pre-crisis level, at its lowest level since INSEE measures it on a quarterly basis (2003). The share of part-time workers wishing to work more hours and available to do so, who represent the bulk of underemployment, was below its pre-crisis level by 1.0 point. However, the share of people who involuntarily worked less than usual (which include partial activity) stood at 0.4%, while it used to stand at 0.2% before the health crisis.

Overall, in Q4 2021, 17.2% 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 0.6 points over the quarter, and stood at its lowest level since 2008.

In Q4 2021, the average number of hours worked per week and per job fell by 1.3% to 30.3 hours. After reaching historic lows in Q1 and Q2 2020, this number rebounded in Q3 2020. However, in Q4 2021, it was still noticeably below its pre-crisis level (by –3.5% compared to the end of 2019). The drop is mainly due to two reasons. Firstly, the number of non worked days due to sick leave (including periods of self-isolation) or childcare sharply increased compared to two years earlier, due to the resurgence of the Covid-19 outbreak. Moreover, the Christmas holidays began early in 2021, which led to more days off during Q4 2021 than during Q4 2019.

The full-time employment rate stood at 56.3% in Q4 2021. It grew by 0.3 points over the quarter and exceeded its pre-crisis level by 1.7 points. On the other hand, the part-time employment rate was virtually stable over the quarter (–0.1 points), 0.7 points below its pre-crisis level. As a result, the share of part-time employment in total employment slightly decreased over the quarter, by 0.2 points at 17.6%, 1.2 points below its pre-crisis level. In Q4 2021, it was at its lowest level since 2008.

The permanent employment rate for people aged 15 to 64 stood at 50.1% in Q4 2021. It was virtually stable quarter-to-quarter (–0.1 points) and 0.2 points above its end of 2019 level. The employment rate on fixed-term contract or temporary work rose by 0.2 points over the quarter to 6.9%, after a 0.3 point increase in the previous quarter. It was back to its end of 2019 level for the first time since the health crisis began (+0.1 points compared to the end of 2019).

The activity rate of people aged 15 to 64 fell by 0.2 points over the quarter, to 73.3%, after a 0.7 point increase in the previous quarter, where it reached its highest level since INSEE measures it (1975).

The slight downturn over the quarter was mainly due to young people. The activity rate for people aged 15 to 24 fell by 1.2 points, as an aftermath of the sharp 2.3 point increase in the previous quarter. It was stable for people aged 25-49 and virtually stable for those aged 50-64 (+0.1 points). The activity rate for young people stood 2.3 points above its pre-crisis level, 1.0 point above for oldest people, and was virtually at the same level for middle-aged people (–0.1 points).

In Q4 2021, the share of young people aged 15 to 29 neither in employment nor in education or training (NEET) rose by 0.5  points to 12.2%, after a 1.0 point drop in the previous quarter. This share was virtually back to its pre-crisis level (–0.1 points compared to the end of 2019).

Compared to the first estimate published on November 19, 2021, the ILO unemployment rate was revised downwards by 0.1 points, at 8.0%. The employment rate was revised upwards by 0.1 points to 67.6% and the activity rate was unchanged to 73,5%, due to the usual updating of seasonal adjustment coefficients.

The next publication, relative to Q1 2022, is scheduled for 17 May 2022 at 7:30 am.