France: unemployment insurance coverage reform of competitors effectiveness

by time news

2024-06-13 08:19:56

Because of the launch of the Meeting, uncertainty has hung for a number of days on the implementation in France of the brand new unemployment insurance coverage reform, which will increase entry to advantages. This Thursday, Might 13, Prime Minister Gabriel Attal confirmed that an order will probably be issued by July 1. Reform rejected by loans, and its results are controversial.

The day earlier than, Emmanuel Macron, in a press convention, has proven that he’s open to these “pointers”. However this Thursday, the Prime Minister confirmed it: an order will probably be issued by July 1, with a view to the implementation of the brand new implementation and competitors of unemployment insurance coverage in France, introduced final June. There was uncertainty for the reason that announcement of the dissolution of the Nationwide Meeting on June 9. The federal government’s coverage is at the moment below scrutiny by the Council of State.

A brand new flip of the screw

That is the third time in 5 years that unemployment insurance coverage reform has been introduced. Whether it is applied successfully, to obtain compensation, job seekers should work longer, and in a shorter time. The federal government defends a reform” courageous », pour» motivation for work “, we had obtain full employment “. 90,000 jobs will probably be created, the federal government hopes, and the unemployment charge is decreased to five% inside three years. We’re at greater than 7% unemployment charge as we speak in France. Three million individuals haven’t any job.

The intention can be, and maybe above all, to scale back the unemployment insurance coverage debt which is about 60 billion euros.

Does proscribing entry to unemployment advantages actually cut back the unemployment charge?

The place economists agree is that it’s unattainable to reply this query as a result of in the mean time, no analysis has been finished on the earlier two reforms, 2021 and 2023. Bertrand Martinot is an skilled related to the Home -Montaigne’s instructing: “ It is rather tough to estimate this sort of factor, it’s attainable after a few years of hinds, as a result of we should have the ability to comply with the unemployed and their evolution. ».

Nonetheless, there’s a controversy. For Bertrand Martinot, if different levers, similar to labor prices, and financial development have to be activated, entry to unemployment insurance coverage additionally facilitates the return to work: ” Çit accelerates the job search, it makes the job search extra intensive, so it essentially helps to scale back unemployment. However it’s clearly not the form of reform that can cut back unemployment by three or 4 factors! ».

Different economists are very tough on the reform of unemployment insurance coverage, like Michaël Zemmour, professor and researcher in economics on the College of Lyon II: ” While you attain the tip of your rights to advantages, in case you are fast to simply accept a job that doesn’t match your {qualifications}, you might be at a robust danger that you can be accepted by another person. There isn’t any job creation. »

Different arguments: ” Once we push individuals to return to work extra rapidly, it is a short-term resolution. And so these quick contracts are liable to returning to unemployment in a short time, as soon as the contract ends, after one or two months. »

For an economist, the objective of the French management is clearly the funds. And if the federal government rejects this cost, the brand new reform of unemployment insurance coverage will, it’s true, obtain vital financial savings: between 4 and 5 billion euros per yr, Unedic, the group that manages the unemployment insurance coverage system.

Debate of the dayIs French sufficient?

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