French Prime Minister Manuel Valls has proposed an aid package for students and young apprentices, after so-called "Nuit Debout" (Up All Night) protests by thousands of young people.
The subsidies for job-seeking graduates and other state support for youngsters are worth €400-500m (£321-401m).
The Nuit Debout movement has organised nightly rallies since 31 March against Mr Valls' labour market reforms.
Early on Monday police cleared away a protest camp on a central Paris square.
Wooden structures erected on Place de la Republique were dismantled and about 100 protesters dispersed peacefully.
The Nuit Debout activists, organised through social media, are mainly left-wing, and their activism has been compared to the Spanish Indignados citizens' movement and the Occupy anti-globalisation movement.