François Hollande 'in denial' over France's unemployment The figures cap what has been a disastrous year for Mr Hollande, as his approval ratings have crashed through successive basements with the French deeply dissatisfied with tax hikes, no significant structural reforms, and successive government U-turns on a range of issues. Socialist Party leaders are now bracing for humiliating losses in municipal elections in March and the European elections in May that could lead to dissolving parliament. In public, Mr Hollande's government put a brave face on the latest figures, even suggesting that they were going its way if widened to include part-time and short-term workers among job seekers. They also pointed out that the final jobless figures for December will only be released late next month - giving small cause for hope. Michel Sapin, the labour minister, on Thursday said that the overall situation remained "volatile" but encouraging and if examined quarter by quarter, already showed a labour market on the mend. This allowed Mr Hollande to claim in a statement: "The reversal of the jobless trend, to which I am committed, is well initiated. Reducing unemployment for the long run is now within reach. But in private, the government was despondent, with one aide telling Le Parisien newspaper: "This is really bad news." Critics, meanwhile, accused the government of being "in total denial" about the true state of the economy and their ability to tackle unemployment. Many pointed to the fact that thousands of jobs have been "artificially" created by state-subsidised youth employment schemes and by a programme to cut payroll taxes for small and medium businesses. Jean-Francois Copé, leader of the main opposition UMP party, said Mr Hollande must admit "his failure and immediately announce a change of economic policy." He said Mr Hollande could not hide "the tough reality that the number of jobless people has never been so high in our country." Marine Le Pen, leader of the far-right National Front party, said: "It is distressing to see that, despite that, the real increase in unemployment is too strong to be statistically covered up as a reduction." Medef, France's largest employers' union, said structural reforms and higher corporate competitiveness were needed to create more jobs. Workers" unions also dismissed the government's claim. The CFDT said the figures were deceptive and the CGT said Mr Hollande had lost his bet to deliver on unemployment by the end of the year. The figures followed gloomy forecasts for 2014 made this month by Insee, the independent state agency saying that unemployment would continue to rise until the middle of next year. The failure of the French economy to rally is in stark contrast to the success of the German economy and the stronger signs of recovery in Britain. Mr Hollande now faces stark choices in reducing state spending, which it must bring down by 50 billion euros in three years to reach European budget deficit commitments. He can expect more anger next week when he increases VAT despite claims that there be no significant tax rises next year. "The president had bet his shirt on reversing the unemployment curve by the end of the year," wrote the Charente Libre newspaper. He's unlikely to make it to New Year without catching a cold.