The Minister of Labor says he wants “go further” on the reform of unemployment insurance. Olivier Dussopt calls for “think about the next step“, considering that our compensation rules must also take into account the situation of the labor market.
Among the examples that France could follow, Canada. “When things are going well, we tighten the rules and when things are going badly, we relax them.“, sums up the minister to explain the Canadian system. “The higher the local unemployment rate, the more generous the compensation“, simplifies Olivier Dussopt.
>> Labor shortage: the government plans to launch the unemployment insurance reform very quickly
In fact, in Canada, protection is not the same for everyone. The amount of compensation paid varies from one region to another, depending on one criterion: the regional unemployment rate. The principle is rather simple: the higher the unemployment rate locally, the more generous the compensation.
Specifically, in the economic region of Calgary, in the province of Alberta, where the unemployment rate is 13%, you will be entitled to thirty weeks of compensation, calculated on the best fourteen weeks, provided you have worked at least 420 hours. On the other hand, if you are in the same situation, but you live in Ottawa, Ontario, the unemployment rate is only 6%. It is therefore necessary to have worked more hours to be entitled to unemployment. The calculation will be made over a slightly longer reference period, which is generally less advantageous, and the aid will only be paid over 16 weeks. In the first case, you will therefore receive more than 400 dollars for six months, and in the other, 350 dollars for 3 months.
For Canadians, this model helps trigger a quicker return to work. According to one study of Unedic, 40% of job seekers in Canada remain unemployed for less than a month. In France, it is the exact opposite: nearly 40% remain unemployed for more than a year.
Some economists believe that this is not necessarily a model to follow, judging that it would be complicated to set it up here. Economist Bruno Coquet, unemployment insurance expert associated with OFCE, wonders: “What problem does this solve?” He also recalls that in France, “nearly one out of two unemployed is not compensated“, and therefore cannot be suspected of wanting to take advantage of the system.
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