average reduction of 16% in allowances with the previous reform

The organization also assessed the effects of the new reform, which will impact “at least half of future recipients”.

Unédic has drawn up an initial assessment of the previous unemployment insurance reform showing an average drop of 16% in daily allowances for the unemployed affected, according to internal documents consulted on Wednesday by AFP.

Launched in 2019 and fully entering into force at the end of 2021, this reform has notably tightened the conditions for compensation for jobseekers, in particular those alternating periods of work and inactivity.

The joint body, which manages the unemployment insurance scheme, observes in view of the results relating to the data from the end of June 2022 that the beneficiaries affected by the reform have on average a daily allowance 16% lower than what they would have perceived with the old rules. At the same time, the average potential duration of rights has increased, to 18 months on average (+3 months).

Unédic also notes a 20% drop in the opening or reloading of rights compared to 2019, due to the new rules and economic effects. The decline is greater among those under 25 (-26%), recipients leaving fixed-term contracts (-30%) or temporary contracts (-37%). The share of benefit recipients among those registered with Pôle emploi was 36.6% in June 2022 (compared to 40.4% in December 2021).

The reform also introduced a degressivity of 30% for unemployed people under 57 who received a salary of more than 4,500 euros gross. Unédic notes that this concerned 31,000 beneficiaries in June and potentially 52,000 others in the following months.

In another document, Unédic assesses the effects of the new reform unveiled at the end of November which will lead, by decree, to a 25% reduction in the duration of compensation for all jobseekers opening rights from the 1st february. According to the organization,regardless of the duration of the current entitlement, at least half of future beneficiaries are affected“. On average, at cruising speed (after 5 years), the number of beneficiaries receiving compensation would decrease by 12%, i.e. around 300,000 people, and the reform would generatelower expenditure of around 4.2 billion euros“.

In a statement, the CGT believes that it “was not mistaken in its forecasts by denouncing a rampage“. “The 2021 reform not only excluded a very large number of unemployed workers from compensation, but it particularly affected young people as well as workers who had lost a fixed-term contract or a temporary contract.“, writes the union, which denounces a “next turnwith the new reform.


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