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The note given to the members of the Bureau indicates a a change in the definition of the social base of the self-employed which has an indirect effect on unemployment insurance funding.
The reform of the social base for the self-employed will be effective from 1 January 2025. It focuses on the bases for social contributions and social contributions (CSG/CRDS) for self-employed workers (TI) who were established so far united. today today on different bases from the general system.
According to estimates, this change would have a negative financial impact on unemployment insurance of around €400 million a year at cruising speed. This would represent a loss of €1.2 billion over the period 2025 – 2027 which would add to the regime’s debt.
The A share of 1.47 CSG points allocated by the social security funding law (LFSS) to unemployment insurance would no longer be sufficient to compensate for the elimination of employee contributions effective from 2018.
Report of the Scrutiny Committee on the tripartite agreement
The report of the last Committee of Inquiry (Cosui) of the tripartite assembly, held on November 13, was presented to the members of the Bureau. This Audit Committee has confirm the definition of performance indicators for the years 2025 to 2027 : 15 strategic markers and several light markers. It will be possible to put these signals into production with France Travail.
A new Cosui will be held in December to set indicator targets for the year 2025.
Monitoring the Unédic roadmap for 2024-2025
In January 2024, the Office confirmed the annual Unédic roadmap which is organized around four missions :
- Give advice and help in making decisions
- Order the rule and monitor its implementation
- Manage the funding of the plan
- Ensure the execution of the plan
Quarterly updates allowed members of the Bureau to be informed about the progress of the work. Since July, the work program continued. Studies, summaries and figures were produced by Unédic services to sustenance of social partner exchanges during the series of unemployment insurance negotiations which led to the signing of a new agreement, pending the approval of the Prime Minister. New studies have also been published, including an analysis of access to training by level of unemployment benefit, compensation for cross-border workers through Unemployment Insurance and a comparative study of the support provided by unemployment schemes for business creators in Europe.
The detailed plan and guiding principles of the Social Bond statement for the year 2023 are given to the members of the Bureau. Since May 2020, Unédic has issued “Social Bonds” as part of the implementation of its financing programs through the issuance of debt. This social issues framework requires issuers to publish specific statements on the allocation of funds raised by social issues as well as the social impact metrics associated with spending.
For this new statement regarding “Social Bonds” debt issued in 2023 (€1 billion), theThe money raised will be directed to the professional security contracting system (CSP).in a context of growing economic depression.
Economic monitoring
An economic analysis note was given to the members of the Bureau. In the 3rd quarter of 2024, GDP grew by +0.4% compared to the previous quarter.
The slowdown in employment continued in the 3rd quarter with -25,000 net job creation in the area of private salaried employment (-28,500 in the 2nd quarter).
Unemployment indicators began to rise again in the 3rd quarter, with increase in unemployment rate to 7.4% (after 7.3% in the 2nd quarter), or about 50,000 more people between the end of June and the end of September to reach 6.2 million at the end of September 2024.
Unédic financial situation
In October, the The highest value of the UNITED division was 48 million Euros to be reached – €81 million cumulatively over the year 2024.
On October 11 and 25, the rating agencies Fitch Ratings and Moody’s have decided to maintain their ratings of French debt to “AA-” and “Aa2”, but lowered the outlook to “negative”.
During its monetary policy meeting on October 17, the European Central Bank (ECB) decided to reduce its key rates by 25 bp. So the deposit payout rate increases from 3.50% to 3.25%.
2024-11-29 17:21:00
#Summary #Unédic #Office #November
## Self-Employment and Unemployment Insurance: A Ticking Time Bomb?
**World Today News Exclusive Interview**
**With:** Dr. Sophie Dubois, Senior Economist specializing in labor market dynamics and social security systems.
**Introduction:**
The French unemployment insurance system (Unédic) is facing a serious financial challenge due to an upcoming reform affecting self-employed workers. World Today News sat down with Dr. Sophie Dubois to dissect the implications of this change and its potential long-term effects on the French economy.
**World Today News:** Dr. Dubois, the recent Bureau meeting notes mention a negative financial impact on Unédic due to the changing social base for self-employed workers. Can you elaborate on this?
**Dr. Dubois:**
Essentially, the way we calculate social contributions for self-employed individuals is being realigned with the general system. While this may seem like a technicality, it has critically important consequences for Unédic funding.
The current system, where self-employed workers are assessed on a diffrent base, contributed a specific amount towards unemployment insurance. This reform eliminates that unique contribution mechanism.
**World Today News:** What are the estimated financial repercussions of this change?
**Dr. Dubois:**
The estimates are troubling. Reports suggest a potential annual loss of around €400 million for Unédic at “cruising speed” – meaning once the reform is fully implemented.
This translates to a staggering €1.2 billion shortfall over the period 2025 to 2027.This amount, added to the existing debt of the unemployment insurance regime, paints a worrisome picture.
**World today News:** The report mentions a CSG point dedicated to unemployment insurance. Is that not enough to compensate for the lost contributions?
**Dr.Dubois:**
Regrettably, the 1.47 CSG points allocated by the social security funding law (LFSS) were initially designed to offset the elimination of employee contributions in 2018. This reform adds another layer of complexity, essentially widening the gap in funding sources.
**World Today News:** What are the potential long-term consequences of this shortfall for the French economy?
**Dr. Dubois:**
We’re looking at a potential domino effect. A weakened Unédic system could lead to:
* **Reduced unemployment benefits**, putting pressure on vulnerable individuals and families.
* **Increased unemployment**, as individuals may be less inclined to start businesses or take entrepreneurial risks knowing the safety net is compromised.
* **Strained public finances**, as the government may have to intervene to prevent the system from collapsing.
Are there any mitigating measures being considered to address this issue?
**Dr. Dubois:**
The Scrutiny Committee is actively wrestling with this problem. They are developing performance indicators to monitor the Unédic system’s health and identifying potential solutions.
However, it’s clear that a extensive re-evaluation of the Unédic funding model is necessary to ensure its long-term sustainability. This reform impacting self-employed workers is merely a symptom of a larger structural issue.
Thank you for your insights, Dr. Dubois. This is clearly a critical issue requiring urgent attention from policymakers.
