Unemployment insurance: average reduction of 16% in benefits with the reform

by time news

The first assessment of the reform of unemployment insurance is clear: it shows a drop of 16% on average in daily allowances, according to internal documents from Unédic consulted on Wednesday by AFP. Launched in 2019 and fully entering into force at the end of 2021, this reform has tightened the conditions for compensation for jobseekers, in particular those alternating periods of work and inactivity.

This organization, which manages the unemployment insurance scheme, observes that the beneficiaries affected by the reform have on average a daily allowance lower by 16% compared to what they would have received with the old rules. At the same time, the average potential duration of rights has increased, to 18 months on average (+ three months).

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

Next “turn of the screw” with the new reform

The reform also introduced a degressivity of 30% for the unemployed under 57 who received a salary of more than 4,500 euros gross. Unédic notes that this concerned 31,000 recipients 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, “whatever the duration of the current right, at least half of future beneficiaries are impacted”. On average, at cruising speed (after five years), the number of beneficiaries receiving compensation would decrease by 12%, i.e. around 300,000 people, and the reform would generate “lower expenditure of around 4.2 billion euros “.

In a press release, 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 lost a CDD or a temporary contract”, writes the union, who denounces a “next turn of the screw” with the new reform.

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