Transport strikes in France are set to continue over the Christmas holidays after talks between the government and labor unions failed to break a deadlock over a planned overhaul of the pension system.

The administration of President Emmanuel Macron aims to reform the country's pension system to restore the financial balance.

Unions have been on strike since December 5, disrupting subways and buses in Paris and trains across the country for two weeks.

The government held negotiations with unions on Thursday hoping for a breakthrough ahead of the Christmas holidays, when many people travel.

The government says there will be another round of talks early next year. But the largest union announced it will continue to stage strikes.

The national rail company says the number of trains will be reduced nationwide to nearly half of the usual levels on December 23 and 24.

Strikes are expected to continue into the new year, raising fears they will further impact the economy.