First mixed assessment of the impact of the reduction in unemployment benefits on the return to work

by time news

2023-10-27 07:00:05

On October 19, Unédic drew up an initial assessment of the controversial reform of the degression of unemployment benefits, which potentially concerns 90,000 people, or less than 3% of the unemployed receiving compensation. To do this, in mid-2023, the joint organization contacted 45,000 unemployed people online who had seen their allowance drop by 720 euros per month on average. 10,608 people responded to the survey which sought to measure the impact on returning to work.

Coming into force in 2021 during Emmanuel Macron’s first five-year term, this reform introduced by a 2019 decree suspended by the health crisis imposed a reduction in the allowance from the ninth month, of up to 30% of the amount. for job seekers aged under 57 and earning more than 4,500 euros gross per month. The beneficiaries are mainly highly qualified men (bac + 5 and above), executives, aged over 45 receiving on average a gross monthly salary of 4,850 euros.

“The rate of return to employment of beneficiaries subject to degression is lower than that of other beneficiaries”, explains Unédic. However, 10% to 15% of survey respondents admit that they have accelerated their research following this measure. 10% even say that they would not have taken the job they hold without a degression. Respondents say they are ready to make concessions on the type of contract or missions, possibly the salary (40%), but less on the qualification of the job (a quarter) and their availability for their family (a third).

Employee unions critical of the reform

A quarter of respondents said they had returned to paid employment and a third had started a business. 15% of those who were considering starting their business say that, without the degression, they would have taken more time to set up their project. But two thirds mention financial difficulties after the reduction of their allowance and feel a “feeling of injustice with regard to years worked”.

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Antoine Foucher, chief of staff of the Minister of Labor at the time of the reform, sees in these figures “certainly not massive, but still significant”proof that degression serves as a spur. “At this level of income, unemployment is almost non-existent. However, these senior executives took much longer to find a job than less qualified unemployed people. This is because they receive high monthly allowances, often above 3,000 euros, and have some savings. There is a correlation between the length of the unemployment benefit period, the amount of benefits and the time taken to find a job. »

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