Chirac surrenders on youth labor law; French students vow to hold further action today against other measures.(Main)

Byline: CHRISTINE OLLIVIER Associated Press

PARIS - President Jacques Chirac caved in to protesters on Monday, canceling a law on youth employment that fueled nationwide unrest and raising questions about France's ability to reform rigid labor laws in a globalized world.

Unions declared victory, but energized students decided to go ahead with a "day of action" today to try to knock down other measures - designed to reduce the 22 percent unemployment rate among youths - that are viewed as threatening job protections.

In an announcement that amounted to a humiliating admission of defeat, Prime Minister Dominique de Villepin said on nationwide TV that …