The Minister of Labor began two days of consultation this Wednesday with union and employer leaders on unemployment insurance reform with no fewer than five meetings: François Hommeril (CFE-CGC), Frédéric Souillot (FO), Michel Picon (U2P), Patrick Martin (Medef) and Marylise Léon (CFDT).
We now know more about the decisions that have been made in recent days on a package of measures from which the government expects “3.6 billion” euros in savings over a full year and whose objective is to increase by ” 90,000 the number of people in employment”, according to rue de Grenelle.
8 months in the last 20 months
Catherine Vautrin immediately mentioned the main economic measure that the government is considering, confirming information from “Echos”. While currently, you need 6 months of salaried activity in the last 24 months to be entitled to unemployment benefit, the conditions will be significantly tightened: you will in fact have to have worked 8 months in the last 20 months.
In the presentation note for the estimates carried out at the request of the unions, Unédic emphasized that such a measure would particularly affect young people under 25, the least well compensated beneficiaries and the precarious.
A return to work bonus for seniors
Although she did not, during her meetings, raise the possibility of an extension of the compensation deferral, the Minister of Labor did, however, specify the senior aspect of the reform. The main novelty is the announcement of a bonus mechanism to fully or partially compensate for the reduction in remuneration that an older unemployed person could suffer who takes up a job that is less paid than the previous one. The cost of the measure would be borne by Unédic, we understood from a union source.
Conversely, if the right to compensation for older unemployed people is maintained until they obtain a full pension, the allowance paid will be capped at 57% of the Social Security ceiling, i.e. 2,202 euros per month gross.
Removal of the age limit of 53 years
Furthermore, the minister confirmed that the age limits for the senior sector will be reviewed. Currently, registration at age 53 or 54 entitles you to 22.5 months of maximum compensation (compared to 18 months before age 53) and at age 55 and over, it is 27 months. In the future, there will only be one threshold raised to 57 years. Below that, the duration of compensation will be reduced to 18 months, the common law regime.
The turn of the screw will therefore be greater than previously envisaged… And the savings too. According to Unédic, at cruising speed, a two-year increase in the two age limits would bring in 270 million euros. So it will be more.
Reinforced countercyclicality
Another reduction in spending is also envisaged with a tightening of the screw on assistance for recovery or business creation. This was provided for in the November 2023 agreement on unemployment insurance signed between the social partners which the government refused to approve, with 870 million euros in savings from 2024 to 2027.
Countercyclicality will be reinforced. As for the future of the bonus-malus, according to one of the social partners interviewed, it has not yet been completely decided, Matignon defending its extension to a few more sectors and the Ministry of Labor its generalization.
Announcements from Attal on Sunday
Catherine Vautrin is due to continue her meetings this Thursday, where she will notably receive Sophie Binet, the general secretary of the CGT. The minister hopes that “the government copy can evolve following these consultations”, the Ministry of Labor is told.
But this can only be at the margins, the unions are convinced. This will be decided at Matignon. “The final decisions will be made [à l’issue des concertations] and the Prime Minister will have the opportunity to make the announcements on Sunday”, during an interview with the written press, specifies those around him.
“We act at the right time in the cycle, because it is when growth is about to restart that we must prepare the conditions for the tightening of unemployment insurance,” argues Emmanuel Macron in an interview with “L’Express » published this Wednesday. For the Head of State, France “compensated too quickly (that is to say after a short period of contribution), too long and sometimes too much for certain groups, which did not encourage the resumption of activity “.