The unemployment insurance reform bill is presented this Wednesday, September 7 in the Council of Ministers. After having already reformed unemployment insurance in 2021, the executive wants new compensation rules to, firstly, extend the current compensation rules until the end of 2023, then in a second phase lead to a new labor reform.
In the face of important recruitment difficulties encountered by companies, the executive considers that the compensation rules in force are still too generous and that they do not sufficiently encourage the unemployed to return to work. For the Minister of Labour, Olivier Dussopt, he ” is unbearable to still be at an unemployment rate of 7.4% with a lot of unfilled jobs “. The government’s objective is to achieve full employment, namely an unemployment rate of 5% by 2027, i.e. at the end of Emmanuel Macron’s five-year term.
According to the Minister of Labour, the amount of compensation, in the future reform, should not change, however the duration of compensation and eligibility for unemployment insurance could be reviewed. The government wants to introduce a new measure that provides more flexibility.
Unemployment insurance could modulate depending on the economic situation. When too many jobs are not filled, the compensation rules are tightened, Conversely when the labor market deteriorates the rules are relaxed in order to better protect the unemployed.
Very divisive, this first reform of Emmanuel Macron’s second five-year term triggers the unanimous anger of the unions, conversely, the employers welcome it.