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The Labor Minister believes that full employment in 2027 remains an “achievable” goal

The Minister of Labor estimated this Monday that the objective of achieving full employment by 2027 is “still achievable”, that is, an unemployment rate of around 5%, compared to the current 7.4%.

“About the goal of full employment, I think it is still achievable,” the minister said during a meeting of Ajis (Association of Social Information Journalists).

“Obviously there will be a slowdown in job creation in 2023 if we have low growth (…) but we are in a rather unique situation, quite surprising”, with an economy that “still creates many jobs”, more than expected by Insee in the third quarter, he continued.

To achieve full employment, the executive is counting in particular on the new unemployment insurance reform that aims to change the rules according to the state of the labor market. The bill on unemployment insurance, which must be voted on in a compromise version on Tuesday in the National Assembly and on the 17th in the Senate, triggers the possibility of carrying out this modulation by decree.

unemployment insurance reform

On the rules that could evolve, the minister said he wanted to reserve the first of the announcements for the social partners, while a consultation launched in October will end with a multilateral session on November 21.

“We will not touch the amount of the compensation,” however, reaffirmed the minister, who rather said his preference for “the question of the maximum duration of the compensation,” currently from 24 to 36 months depending on age.

According to him, “we must maintain a minimum duration of compensation that allows, in particular, those who are eligible after a six-month fixed-term contract to remain eligible.” Today, it takes six months of work during a 24-month reference period to qualify for unemployment compensation.

In addition, “I do not believe in going beyond the six months of minimum affiliation duration” because “many times the entrance to the labor market is done by a fixed-term contract” and these are more “of six months than seven or eight months ,” he continued.

Regarding the criteria for assessing the economic situation that will be used for modulation, “it is clear that one of the criteria must be the drop in unemployment, as well as the relationship between vacant positions and the number of registered applicants,” he added. .

Author: CO with AFP
Source: BFM TV

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