Unemployment insurance coverage: Gabriel Attal reveals a reform calibrated to economize

This was anticipated for a number of days, after the Minister of Labor, Catherine Vautrin, acquired the social companions one after the other to current the principle strategies for the reform of unemployment insurance coverage. Lastly, it was the Prime Minister, Gabriel Attal, who revealed the minutes this Sunday, Might 26 in a interview at Sunday La Tribune.

This new reform must be relevant from 1 December making it potential to attain financial savings of three.6 billion euros over a full 12 months and “Shifting in direction of full employment », creating 90,000 jobs. “This reform is the gas that can permit us to create extra jobs in our nation.”defined the Prime Minister.

Two of the principle parameters it affected

Regardless of what rumors have urged in latest days, two of the principle areas of unemployment insurance coverage will probably be affected: binding circumstances and the size of compensation.

To qualify for unemployment insurance coverage, you need to now have labored eight months out of a twenty-month interval, in comparison with six months out of twenty-four beforehand. A measure that, in line with a latest Unédic report, ought to punish all younger folks underneath the age of 25, extra typically in precarious contracts. Based on figures offered by the Ministry of Labor to the unions (which haven’t been confirmed to the media), 190,000 such folks ought to fall beneath the extent of rights.

As for the utmost compensation interval, this will probably be shortened once more to go from eighteen to fifteen months within the normal system. A ceiling that may very well be lowered to 12 months, if the unemployment fee is beneath 6.5%, and elevated to twenty months if it rises above 9%, in line with the brand new precept generally known as “countercyclicality” which needs the regime to tighten inward. instances of ample labor provide. And vice versa.

Outdated folks put to work

Older folks won’t be protected by this new twist of the screw both: employees aged 53 and 54, who may very well be compensated for as much as twenty-two and a half months, will return to the overall five-month regime ten As for the second degree, which was set at 55 years, it falls to 57 years, with a compensation interval decreased from twenty-seven to twenty-two and a half months.

In consequence, by making a “senior employment bonus” it must be potential to completely or partially compensate for the discount in wages that an unemployed individual over 57 could expertise of age, who takes a job with much less pay than earlier than. one. This improvement financed by Unédic will make it potential to compensate for the deficit in salaries as much as 3,000 euros.

Reform thought of unfair

The unions imagine that this tightening of circumstances is unprecedented. They deny reform “unfair”, “ineffective”, “made towards the unemployed”and even “prison”, in line with the phrases utilized by the overall secretary of the CGT Sophie Binet. “Of the 5 reforms which have handed since 2019, that is essentially the most violent of all.”confirms Denis Gravouil, liable for questions associated to employment on the CGT.

“The federal government has not offered any measures for the lots of of 1000’s of extra unemployed individuals who will probably be excluded from unemployment insurance coverage. It’s pure cynicism. “, agrees Olivier Guivarch, nationwide secretary of the CFDT. When requested by the media concerning the threat of seeing 1000’s of individuals transfer to the RSA, Matignon mentioned he didn’t “assessed” this hazard, he most popular to guard it “logic for return to work”.

Lack of analysis of earlier reforms

Besides, because the unions say, it’s removed from being confirmed that this umpteenth tightening of circumstances facilitates the trail to full employment. “Examine would not show this, emphasizes Olivier Guivarch. Moreover, the one investigation the federal government has put ahead is a a latest Dares report, who rightly says that it is extremely tough to evaluate the tightening of unemployment rights on the unemployment fee. »

“However, the federal government can’t clarify why the vast majority of unemployed folks with out compensation don’t return to work, which exhibits to what extent we’re within the ideology. », Estimating his half is the labor economist Bruno Coquet on the OFCE.

“Really, the federal government’s actual goal is to economize, concludes Olivier Guivarch. It was essential to make about 4 billion in financial savings: so the federal government put the cursor in a method that they might get these 4 billion. » Within the opinion of a number of unions, the financial savings put ahead by the federal government can be intentionally underestimated in order that they might not have to just accept that this can be a price range reform that after once more places the burden on work

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The principle reforms from 2021

October 2021. New kind for calculating unemployment advantagestogether with working and non-working durations.

December 2021. Change of entitlement circumstances. You could now have labored six months within the final twenty-four months (in comparison with 4 months within the earlier twenty-eight months).

July 2021. Discount of allowances for beneficiaries underneath 57 whose earnings was above €4,800. They see their allowance decreased from the seventh month of compensation.

February 2023. Introduction of countercyclicality. The compensation interval for brand new entrants to unemployment insurance coverage is decreased by 25% if there are favorable financial circumstances (unemployment fee beneath 9%).