A no-confidence motion brought by the centre-right opposition won 246 votes in the National Assembly, falling short of the 288 required to bring down the government.
New protests were held across the country today against the draft law, with violent clashes reported in Paris and acts of vandalism in the western city of Nantes.
The bill still faces several major hurdles before it is adopted.
The government says the reform is aimed at loosening up France's notoriously rigid job market.