Jobless totals down in Germany and France

Unemployment is down in Germany and France, the two largest euro zone economies, but it reamins to be seen if that is from significant economic growth. The German jobs figures were the last before the general election there and employment has been a major campaign issue.

Unemployment totals have fallen since March, but analysts said that is partly due to claimants falling off the register when they are reclassified as unable to work, plus a growth in government subsidised jobs where the long-term unemployed earn one euro an hour on top of their benefits. The August figure for Germany was 11.4%. compared with 11.5% in July. The totals are not adjusted for seasonal factors.

In France, where seasonal hiring is taken into consideration, the latest figure is for July, At 9.9% it is below 10% for the first time in two years. France's new Prime Minister Dominique de Villepin has made employment his top priority, but one French job seeker said it is not easy for those new to the labour market: "Employers demand both work experience and a certain level of qualifications. When you're fresh out of university you don't have that work experience and you can't make it up."

As in Germany, much of the improvement in France is credited to an increase in government-funded jobs, such as apprenticeships and temporary work contracts in the public and non-profit sectors.