French non-farm payrolls rose 0.1 per cent in the second quarter of this year in what economists said was a sign the upturn in the euro zone's second-largest economy was finally creating jobs.
Statistics office INSEE reported non-farm payrolls rose to 15,440,900 in the second quarter from 15,426,700 in the first. The data came after figures yesterday showed French gross domestic product rose 0.8 per cent in the second quarter.
French Finance Minister Mr Nicolas Sarkozy
Economists noted that any rise in employment was still tentative and pointed to recent data showing that joblessness in June still edged up to 9.9 per cent.
INSEE also said French consumer prices dipped 0.2 per cent in July, putting the fall mainly down to the impact of summer sales and a seasonal drop in the cost of fresh produce.
Analysts said it nonetheless confirmed the view that France faces no major inflationary risk. Energy prices edged up just 0.2 per cent in July after sharp rises in recent months.
France's second quarter growth data beat expectations and put it in the vanguard of the euro zone's still patchy upturn.
The conservative government hailed the figures as proof of the effectiveness of its policy of using a variety of tax breaks and incentives to boost consumer spending - which remains the core support of the recovery.
Finance Minister Mr Nicolas Sarkozy said the GDP data showed the economy could "quite easily" grow by 2.5 per cent this year.
"These numbers put French growth at the head of the euro zone countries. We have to continue to fight to support consumer spending," Mr Sarkozy said.