Final answer:
France's higher natural unemployment rate compared to the US indicates more labor market regulations that discourage hiring and contribute to higher unemployment.
Step-by-step explanation:
The observation that France has a higher natural rate of unemployment than the US suggests that the French economy has more extensive labor market regulations and policies that potentially discourage hiring. Such rules and restrictions can include higher labor costs, stringent job protection laws, and generous unemployment benefits, which could increase the friction in the labor market and contribute to a higher natural rate of unemployment.
This contrasts with the US, where labor markets are generally more flexible, and these factors are less of an impediment to employment, resulting in a lower natural rate of unemployment.