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More people were unemployed in France in September than ever before, data showed on Friday, highlighting the struggles facing the euro zone's second-largest economy as its leaders seek to win more time from the EU to put its finances back in order. The Labour Ministry said the jobless total in mainland France rose by 19,200 to 3,432,500, a 0.6 percent increase over one month and 4.3 percent over one year.
President Francois Hollande has seen his popularity fall to the lowest ratings in French polling history as he failed to live up to promises to get unemployment falling. The September rise in the jobless total wiped out a slight fall in unemployment in August, a rare drop which was the first since October 2013. The increase in unemployment added to bad news after a survey showed on Thursday that France's business downturn deteriorated in October to an eight-month low.
Firms cut prices at the fastest rate since the global financial crisis in the face of weak demand, according to data compiler Markit's purchasing managers' index. The French government had been counting on a pick-up in business activity in the second half but has cut its 2014 economic growth estimate to 0.4 percent from 1.0 percent previously after the economy stagnated in the first half.

Copyright Reuters, 2014

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