Paris - France's unemployment rate remained stable at 7.2 per cent in the second quarter of 2008, the government's statistical office INSEE reported on Thursday.

A little more than 2 million men and women of working age remained unemployed on average in the quarter, which was about the same number as in the first quarter of the year.

The report generally surprised analysts, who had expected a small rise in joblessness in the period due to the slumping economy.

According to the Organization of Economic Cooperation and Development (OECD), France's GDP is expected to grow by only 1 per cent this year, well below previous government forecasts.

However, 4.9 per cent of the labour force was described as underemployed, up significantly from the first quarter's 4.6 per cent.

In addition, the most vulnerable age groups showed the effects of the economic slowdown.

Joblessness for those between the ages of 18 and 25 rose to 18.3 per cent in the second quarter, compared to 17.4 per cent in the first three months of the year.

Unemployment among jobseekers over 50 years of age also increased, from 4.8 per cent to 5.1 per cent, INSEE said. (dpa)