According to the latest figures released, the unemployment rate in France increased to 10.6 per cent during the third quarter of the current financial year.

France's national statistics agency Insee said on Thursday that the total unemployment level has risen 0.3 percent point to 10.6 per cent from 10.3 per cent recorded in the third quarter of 2012.

The high level of unemployment in the second largest economy in Europe would add pressure on the government of President Francois Hollande to implement the labour market reform, which has been a contentious issue in the country.

Experts say that France has been largely able to avoid the effects of the prolonged European debt crisis but high unemployment rate indicates that the French Economy is beginning to see the impact of the prolonged crisis. High debt level and a slowdown in the global economy have pushed up unemployment rates in various European countries, including France.

President Hollande had promised that the government would work to ensure that the unemployment rate does not rise this year. The government released a plan to reform the labour market in the country on Wednesday. Employers are reluctant to hire new employees in the country because it is very difficult to lay-off workers in the country even at the time of great economic difficulties.