By Stacy Meichtry

PARIS--The number of unemployed people in France rose to a new high in December, figures showed Tuesday, underscoring the challenge President Francois Hollande faces in repairing the eurozone's second-largest economy.

The number of unemployed--defined as registered job seekers who are fully unemployed--was 3,496,400 in December, the labor ministry said. That marked a 0.2% increase from November and a 5.7% increase from December 2013.

Since Mr. Hollande took power in May 2012, the ranks of the unemployed have swollen by over half a million. That is despite the socialist leader's efforts to increase employment with state-sponsored jobs for young people and a more recent initiative to cut labor taxes in a bid to get employers recruiting.

Write to Stacy Meichtry at stacy.meichtry@wsj.com