FACTBOX-Challenges facing French president-elect Sarkozy

(Reuters) - Conservative Nicolas Sarkozy was elected president of France in a run-off vote on Sunday, according to television projections after polls closed.

Below are some of the main challenges that will face him.

PARLIAMENTARY ELECTION

* The new president forms a government on taking office but faces a test with a parliamentary election on June 10 and 17 that will decide whether his UMP party retains control of parliament or he is forced to "cohabit" with the opposition.

UNEMPLOYMENT

France's unemployment rate is the highest in the euro zone at more than 8 percent, despite steady improvements over recent months. Jobs were among voters' main worries. To encourage firms to hire more, Sarkozy plans to introduce a more flexible labour contract and will also allow unemployment benefit claimants to turn down no more than two job offers without losing benefits.

PURCHASING POWER

Along with jobs, purchasing power was one of the main preoccupations of the election campaign, despite relatively robust consumer spending in past months.

Sarkozy has pledged to allow people to earn more by working more. He will loosen rules on the 35-hour working week and exempt overtime from tax and social security charges for both employers and employees.