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* Jobless claims up by 16,600 in March ahead of election

* Surging unemployment tarnishes Sarkozy’s record

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By Leigh Thomas

PARIS, April 26 (Reuters) – The number of jobless people in

France rose for the eleventh month running in March to hit the

highest level since September 1999, putting another dent in

President Nicolas Sarkozy’s economic record as he battles to get

re-elected next month.

The labour ministry data released on Thursday showed the

number of registered jobseekers in mainland France rose by

16,600 to 2.88 million in March, up 0.6 percent on the month and

7.2 percent on the year.

The increase was the latest reminder of how weak the labour

market remains in the euro zone’s second-biggest economy ahead

of a May 6 presidential election which polls tip Socialist

candidate Francois Hollande to win by a wide margin over

Sarkozy.

After four years of economic crisis which have left surging

unemployment, record debt and limp growth, Sarkozy is struggling

to persuade voters that he is the best candidate to lead the

country towards the path of recovery.

Under Sarkozy’s watch the jobless total has risen by nearly

750,000, and Hollande and his camp rarely miss an opportunity to

point this out.

Top Sarkozy aide Henri Guaino blamed the increase in

unemployment on the economic crisis and stressed that it was not

limited to France.

“It’s so much worse elsewhere. We’ve managed in France to

limit a bit the increase of unemployment compared to elsewhere,”

he said on iTele TV. “Sarkozy has protected the French as best

as he could against the impact of a catastrophic crisis.”

Unemployment frequently ranks as a top concern for voters

and has been a major theme of the campaign, which has seen

Sarkozy’s government battle to prevent high-profile industrial

shutdowns.

His office signalled on Thursday that the state was prepared

to aid security firm Neo Securite, which employees 5,000 people

and is teetering on the brink of bankruptcy.

Sarkozy wants to tackle unemployment by tightening access to

benefits so that the jobless can no longer turn down job offers

or training after a certain period out of work.

In contrast, Hollande wants to reduce unemployment with a

scheme to cut social charges on companies that promise to hire a

person aged under 30 while keeping on an employee over 50. His

camp estimates the measure would cost 2.3 billion euros ($3.04

billion) over the next five-year presidential term.

Hollande has pledged to bring unemployment down over the

course of the next year, but refuses to commit to a specific

target.

The monthly labour ministry data is the most frequently

reported domestic jobs indicator for France, although it is not

prepared according to widely used International Labour

Organisation (ILO) standards nor expressed as an unemployment

rate of number of job seekers compared to the total work force.

($1 = 0.7559 euros)

(Reporting by Leigh Thomas; editing by Jeremy Gaunt and Geert

De Clercq)