It will be contested in next Sunday's second round by Mounir Mahjoubi, the youngest minister in Macron's new government, and hard-left candidate Sarah Legrain.
Leaders of the disappointed parties were trying to brush off the all-round humiliation by pointing to low voter turnout.
His party fielded political newcomers in around 200 constituencies, some of whom felled heavyweights of the left and right in the first round.
Macron's Republic on the Move party (LREM) and its allies were set to win over 30% of the vote, the ministry said shortly after voting stations closed.
But for him to be able to carry out his program of reform, he needs to be able to govern - and that means having a majority in parliament.
The president was economy minister in the Socialist government that began loosening the labor laws previous year, sparking mass demonstrations that lasted for months. Le Pen said that this statistic is very disturbing. If you add the votes won by the party's ally Modem, they have a combined 32.four percent support.
The election took place amid heightened security after a series of devastating terror attacks in recent years. That appears unlikely, given French voters' disaffection with traditional parties.
The Senate, the upper house, will be elected by an electoral college September 24.
French voters went back to the polls yesterday for the first round of parliamentary elections that are predicted to give President Emmanuel Macron's centrist party a commanding majority.
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Philippe attributed the low turnout to "demobilization" of political parties who lost out in the presidential election and of "some of the electorate, for whom the election of the president of the Republic ended the discussion".
If this share of the vote is verified on the second round on June 18, Emmanuel Macron will have a blank check with a 400 plus majority in a 577 seat parliament.
The head of the conservative Republicans party, Francois Baroin, also urged voters to turn out in larger numbers next week to help ensure that Mr Macron's party faces a robust opposition.
"Chancellor Merkel: My honest congratulations to Emmanuel Macron for the great success of his party in the first round".
Nationally, LREM gathered 28.2 percent of the votes cast.
The Republicans gained 20.9%, according to first estimates; the National Front 13.1%, Unbowed France 11% and the Socialist Party just 9%. We need a massive mobilization for the second round.
Jean-Christophe Cambadelis, a senior figure in the French Socialist Party, recognized the "unprecedented retreat" of the Socialist party but also argued it would be a bad result for democracy in France if Macron benefited from a "monopoly on democratic representation". French voters are choosing lawmakers in the lower house of parli.
Macron's predecessors Francois Hollande in 2012, Nicolas Sarkozy in 2007 and Jacques Chirac in 2002 all won outright majorities.
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