Barthélémy Philippe, edited by Juliette Moreau Alvarez
With pensions, it is the reform that causes the most cringe: that of unemployment insurance. Monday morning, Olivier Dussopt brought together the social partners at the Ministry of Labor to reveal the new rules to them. The government’s objective: full employment in 2027. To achieve this, the conditions for unemployment benefits will be tightened further.
A flexible reform depending on the situation
The government has planned to modulate the duration of compensation according to the economic situation. From February 1, 2023, it will be reduced by 25% for newly unemployed people if the state of the labor market is green. This is also the current configuration with an unemployment rate of 7.3%. Concretely, we leave the principle one day worked, one day compensated. If an unemployed person has contributed for twelve months, for example, he will only be covered for nine months. The current minimum compensation period of six months will nevertheless be maintained.
On the other hand, if the unemployment rate exceeds 9% or if it increases by 0.8% in one quarter, we will revert to the current rules. There are also exceptions to the rule, since the reform will not apply overseas, nor for intermittent entertainers, fishermen, dockers, expatriates or beneficiaries of the professional security contract.
A “favorable context” which justifies this reform
According to Olivier Dussopt, the economic situation fully justifies this turn of the screw. “We consider that today, with the fall in the unemployment rate from 9.5 to 7.3%, with the recruitment difficulties that we are encountering, the labor market in a favorable context which justifies a downward modulation the maximum duration of compensation.”
The Minister of Labor hopes to fill 100 to 150,000 additional jobs by the end of 2023 thanks to his reform. Today, France has 373,000 vacant positions, particularly in the construction industry or the hotel and catering industry.