What are the avenues envisaged for the brand new unemployment insurance coverage reform? | EUROtoday

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“Iencourage” the French to work via a “real, more global reform of unemployment insurance”. Announced by Gabriel Attal on Wednesday March 27 on TF1, this new reform – the third since 2017 – has the acknowledged purpose of tightening the screws on job seekers with a view to gather “additional revenue” whereas state funds are at a loss. decrease, with a deficit of 5.5% in 2023, and that the federal government reveals its want to not improve taxes.

Unemployment rose barely in a single 12 months, to face at 7.5%, removed from the 5% focused for 2027 by Emmanuel Macron. The Prime Minister has thus instructed Catherine Vautrin, the Minister of Labor, to arrange the framework for this reform which the social companions should talk about for entry into pressure subsequent fall.

Duration, degree of compensation, opening of rights

At this stage, a number of avenues are being thought-about by Matignon, totally different motion levers that may be activated to cut back bills. Firstly, the period of compensation may once more be diminished by a number of months. The earlier reform, quickly adopted in February 2023, had already diminished it from 24 to 18 months for these beneath 53. The Prime Minister declared that “it should not go less than twelve months”.

The working time essential to grant rights is also prolonged once more. The 2019 reform elevated the minimal period of employment essential to qualify for rights from 4 to 6 months, over two years. In the brand new reform, this period may very well be prolonged to eight months, as a substitute of the present six, or run over a shorter interval, a 12 months and a half as a substitute of two years, for instance.

Finally, the extent of compensation is also revised downwards. This would then contain a modification of the strategy of calculation, or by accentuating the degression of allocations. This speculation is the one that’s “least preferred” by Gabriel Attal, who nonetheless put it on the desk with a view to “let the social partners work”.

According to a primary evaluation, revealed by Dares on March 4, the 2019 reform, which totally entered into pressure in 2021, led to a discount by 17% within the variety of rights granted between 2019 and 2022 and their quantity, whereas that of 2023, based mostly on an thought of ​​modulating unemployment advantages in line with the financial state of affairs, diminished the period of compensation by 25%, when the unemployment fee is lower than 9%.

Double the employment fee of over 60s

They are already engaged on one other negotiation, which issues the employment of seniors and may finish initially of April. The authorities's goal is to double the employment fee of these over 60 by 2027, to 60%, in comparison with a superb third presently. Discussions are persevering with, however right here too, a number of choices are on the desk: the creation of a “senior index” for corporations with greater than 300 workers, with a view to measure their involvement within the coaching, retention and recruitment of senior workers or the creation of a “senior permanent contract”, accompanied by decrease prices for employers.

Supported by senators and supported by enterprise leaders, the proposal is criticized by unions, who take into account that this might quantity to creating these over 55 “low-cost employees”. Finally, nonetheless with an financial perspective, the federal government can also be contemplating as soon as once more lowering the unemployment rights of the oldest, who presently profit from an prolonged interval of compensation from the age of 53. This had already been diminished throughout the February 2023 reform: unemployed individuals aged 53 to 55 had seen their period of compensation diminished from 27 to 22 months, and people over 55 from 36 to 27 months.