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France's unemployment rate was 10.1 percent in January, national statistics office INSEE said on Monday, revising up the figure of 10.0 percent it reported initially. The revision deals a blow to recovery hopes for the eurozone's second largest economy and is a setback for Prime Minister Jean-Pierre Raffarin's conservative government, which is aware of the importance voters attach to the issue of jobs. The January unemployment rate remained at a five-year high.
INSEE's report adds to Raffarin's woes just as he is seeking to rally support for a 'Yes' vote in a referendum on the European Constitution on May 29. His government is reeling from recent protests over labour reforms and cost-cutting measures.
In an annual revision of its unemployment figures, the statistics office revised up to 10.0 percent the jobless rate for last December and for every month back as far as September 2003, for which it gave a reading of 9.9 percent.

Copyright Reuters, 2005

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