The duration of compensation will be reduced by 25% from the 1er February for the new unemployed, according to union sources this Monday, November 21, while the Minister of Labor Olivier Dussopt presents the reform of unemployment insurance to the social partners.
“The government has just announced a general reduction in rights of 25%”, denounced Michel Beaugas (FO) after a meeting at the Ministry of Labor. Denis Gravouil (CGT) criticized a reform “completely unacceptable”.
The sequel after the ad
Green period, red period
According to information from BFMTV, the government intends to modulate the duration of compensation according to the unemployment rate in France. Two cases will be possible: if the unemployment rate is below 9%, as is currently the case, or if it falls for three consecutive quarters, the country will be in “green period”. The duration of the rights will then drop by 25% for the beneficiaries: a job seeker currently entitled to 24 months of compensation will only receive them for 18 months. A minimum floor of six months will be put in place.
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If the unemployment rate comes to go back above 9%, or if it increases by 0.8% in one quarter, then the country will go into “red period” and the rights will be restored to 100%.
Until today, the duration of compensation is applied according to the principle “one day worked, one day compensated”, with a maximum of 24 months for those under 53, 30 months for those aged 53-54 and 36 months for those aged 55 or over. The level of compensation and the conditions, namely the fact of having worked six months over a reference period of 24 months, are not modified.
The objective advanced by the government to justify this tightening of the rules is to encourage more strongly the resumption of employment, in a period when the lack of labor is felt in many sectors.
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“The elements available to us lead us to hope for between 100,000 and 150,000 returns to employment throughout the year 2023”said Olivier Dussopt during a press conference.
