While young people have to cross the wall of the health crisis to enter the labor market, has hiring aid for those under 26 served them as a springboard? Nothing is less certain, if we are to believe the first joint evaluation of this device, carried out by the Directorate for the Animation of Research, Studies and Statistics of the Ministry of Labor (Dares) and the Economic Analysis Council ( CAE) and published Wednesday May 12.
These two institutions looked at one of the flagship measures of the “1 young person, 1 solution” plan, launched in the summer of 2020 by the government: compensation for contributions of up to 4,000 euros (i.e. 1,000 euros per quarter for a maximum of one year) for employers hiring a young person under the age of 26 on an open-ended contract (CDI) or on a fixed-term contract (CDD) of at least three months.
The aid, extended until May 31, was put in place while “The situation of young people on the labor market is[était] severely degraded by mid-2020 “, notes the Dares. From the start of the crisis, young people have had more difficulty finding work than other age groups: in the second quarter of 2020, the employment rate for those under 26 was 4 points lower than year earlier (32%), against only 1 point for the entire working population (64%).
To the detriment of temporary work
Aid for the hiring of young people (AEJ) has been relatively successful with employers. Between August and December 2020, 310,000 requests were made and 240,000 aid paid, for a cost estimated at 803 million euros between July 2020 and March 31, 2021, according to the Ministry of Labor, cited by Agence France- hurry. This resulted in hiring by some 1.3 million permanent or fixed-term contracts of more than three months for the benefit of those under 26 between August 2020 and January 2021.
Can we speak of windfall effects? At first glance, this aid had a positive impact on the recruitment of under-26s, agree the authors of the two evaluations. “In the third and fourth quarters of 2020, the long-term or CDI employment of young people aged 22 to 25 (eligible for AEJ) would have been 7% higher than what it would have been without the implementation of the ‘help “, advances the Dares. This device would have allowed an 8% increase in the number of hires in this age category (+ 9.5% in the sectors most affected by the crisis) specifies, for its part, the CAE.
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