Informations Rapides · 13 August 2021 · n° 207

In Q2 2021, the unemployment rate was virtually stable at 8.0% ILO Unemployment and Labour Market-related indicators (Labour Force Survey results) - second quarter 2021

In Q2 2021, the number of unemployed people in France (excluding Mayotte) reached 2.4 million, down by 16,000 over the quarter. As in the previous quarter, the ILO unemployment rate was virtually stable (–0.1 points) at 8.0% of active population, after a year of strong fluctuations in 2020. It was almost identical (–0.1 points) to its end of 2019 level, before the health crisis.

Over the quarter, the unemployment rate decreased for people aged 15 to 24 (–0.8 points) and those aged 25 to 49 (–0.2 points) and increased by 0.4 points for those aged 50 or more.

It was below its pre-crisis level (at the end of 2019) for young people (–1.4 points) but at the same level for intermediate aged persons (–0.1 points) and oldest people (+0.1 points).

Among the inactive people as defined by the ILO, 2.0 million want a job without being considered unemployed: they made up the halo around unemployment. This situation concerned 4.9% of people aged 15 to 64, as in the previous quarter. This share was 0.2 points higher than its pre-crisis level, but much lower (–2.1 points) than the peak reached in Q2 2020, which was the main counterpart of the temporary and « trompe-l’oeil » fall in unemployment during the first containment.

Among the unemployed people, 0.7 million declared that they had been searching a job for at least one year. The long-term unemployment rate stood at 2.4% of the active population in Q2 2021. It was virtually stable (–0.1 points) over the quarter, after a 0.4 points jump in Q1 2021. Thus it stood 0.2 points above its pre-crisis level at the end of 2019.

This virtual stability concealed marked differences by age: –0.7 points for people aged 15 to 24, –0.2 points for those aged 25 to 49 and +0.1 points for oldest people.

On average in Q2 2021, the employment rate of people aged 15 to 64 increased by 0.3 points to 66.9%, after remaining stable at the beginning of 2021. It returned to its pre-crisis level (+0.1  points compared to the end of 2019) and stood at its highest level since INSEE began measuring it on a quarterly basis with the Labour Force Survey (2003).

The employment rate rose sharply for young people (+0.9 points), more moderately for intermediate aged people (+0.3 points) and oldest people (+0.1 points). Compared to their respective pre-crisis levels, the employment rate for young people was 1.2 points above, that of older people 0.6 points above, while that of people aged 25 to 49 was 0.4 points below.

In Q2 2021, the share of underemployment in employment fell by 0.7 points to 7.3%, after remaining almost stable (–0.1 points) in the previous quarter. It reached an exceptional peak in Q2 2020, at 15.8%, due to an unprecedented number of people in technical unemployment or partial activity during the first containment. By the end of 2020, it had risen again, more moderately, due to the second containment.

Underemployment exceeded its pre-crisis level (end of 2019) by 1.4 points. The increase came from people who had involuntarily worked less than usual (including temporary layoff and partial working). They represent 2.3% of people in employment in Q2 2021 compared to only 0.2% before the crisis.

In total, in Q2 2021, more than one out of five participants in the labour market (active 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 0.7 points over the quarter, to 20.1%, 1.3 points above its level at the end of 2019 but 8.8 points below its peak in Q2 2020.

In Q2 2021, the average number of hours worked fell by 1.0% to 30.6 hours per week, following a similar increase in Q1. After an unprecedented low in Q2 2020 (–12.6%), this number rebounded (+19.8%) in Q3 2020. However, in Q1 2021, it was still below its pre-crisis level (by –2.2% compared to the end of 2019).

The full-time employment rate stood at 55.2% in Q2 2021. It grew by 0.4 points over the quarter and by 0.5 points compared to its pre-crisis level. In contrast, the part-time employment rate was virtually stable over the quarter (–0.1 points), at 11.7%. It was 0.5 points lower than its end of 2019 level. As a result, the proportion of part-time employment was virtually stable (–0.1 points) over the quarter, at 18.2%, 0.6 points below its level at the end of 2019.

The permanent employment rate for people aged 15 to 64 was stable in Q2 2021, at 50.2%. It stood 0.3 points above its level at the end of 2019. The rate of employment on fixed-term contract or temporary work increased by 0.2 points over the quarter to 6.4%, after remaining stable in the previous quarter. After an unprecedented fall in Q2 2020, it had partially recovered in Q3. Thus, in Q2 2021, it was 0.4 points below its pre-crisis level and 0.9 points below its highest level at the end of 2017.

The activity rate of people aged 15 to 64 went up by 0.2 points quarter-to-quarter, to 72.7%, after being virtually stable in the previous quarter (+0.1 points). It fell by 2.3 points in Q2 2020, during the first containment, then recovered in the third quarter. This decline was the result of people withdrawing from the labour market into inactivity, in particular by ceasing their job search due to sanitary restrictions. At the end of 2020, it fell slightly again (–0.2 points), during the second containment.

In total, the activity rate was virtually back (–0.1 points) to its level before the health crisis at the end of 2019. Compared to the end of 2019, the participation rate decreased by 0.6 points for women but increased by 0.3 points for men.

Over the quarter, the activity rate rose sharply for young people (+0.8 points), more moderately for those aged 50 to 64 (+0.3 points) and was stable for those aged 25 to 49. Compared to the end of 2019, it was clearly above for young people (+0.8 points) and those aged 50 to 64 (+0.7 points), but lower for 25-49 year old people (–0.6 points).

In Q2 2021, the share of young people aged 15 to 29 neither in employment nor in education or training (NEET) went down by 0.3 percentage points to 12.8%, due to an improvement in youth employment, after a 0.3 points increase in the previous quarter. It stood 0.5 percentage points above its pre-crisis level.

Compared to the first estimate published on June 29, 2021, the unemployment rate for the first quarter of 2021 was unchanged at 8.1%.

The employment rate and activity rate of people aged 15 to 64 were revised upwards by 0.1 points to respectively 66.6% and 72.5%, due to the updating of seasonal adjustment coefficients.

The next publication, relative to Q3 2021, is scheduled for 19 November 2021 at 7:30 am.