A new job forecast. The Government reveals this Monday to the social agents its decisions on its new unemployment insurance reform. During a meeting at the Ministry of Labor starting at 9 am, Olivier Dussopt will inform employers’ organizations and unions of “the selected arbitrations” after a consultation started in October.
According to information from BFMTV, the government intends to modulate the duration of the compensation according to the unemployment rate in France. Two cases will be possible.
A threshold of 9%
• If the unemployment rate is below 9% or if it has fallen for three consecutive quarters, the country will be in “green period”. The duration of the rights will drop by 25% (coefficient 0.75) for the beneficiaries: if before the reform we were entitled to 24 months of compensation, we went to 18 months.
The government’s proposed goal is to encourage people to return to work faster, because many areas are experiencing difficulties in hiring, while the number of unemployed is high.
• If the unemployment rate exceeds 9%, or increases by 0.8% in a quarter, then the country enters the “red period” and rights are restored to 100%.
Aujourd’hui, the durée d’indemnisation est apliquée selon le principe un jour travaillé, un jour indemnisé, avec una máximum de 24 mois pour les moins de 53 ans, 30 mois pour les 53-54 ans et 36 mois pour les 55 ans or more.
The modulation should enter into force on February 1, 2023. It will only apply to new job seekers and will affect older people.
A decree made possible by Parliament
The executive insists that there is urgency in the face of the difficulties in hiring companies, and makes this reform a cornerstone of his strategy to achieve full employment in 2027, that is, an unemployment rate of around 5% compared to 7 .3% current. A goal that Olivier Dussopt considers “always achievable”.
At the same time, the government is mobilizing to respond to recruitment tensions, with a plan deployed by Pôle emploi to support the unemployed. “The president’s goal of full employment is within reach. All of this will contribute to it,” he says.
AFP recalls that, in the coming weeks, the government will issue a decree. This was made possible by the “labor market” bill, passed by Parliament on Thursday, which gives the government a hand in deciding on the rules until the end of 2023 instead of the social partners.
In the third quarter, France had 373,100 vacant jobs, according to data from the Labor Ministry. For a total of 2.3 million unemployed, according to INSEE. The unemployment rate remained stable at 7.3% of the active population in France (excluding Mayotte). France has not experienced an unemployment rate of 9% (as defined by the International Labor Office, ILO) since 2018.
Source: BFM TV
