Infotech “Where have the workers gone? The False Argument Behind Unemployment Insurance Reform

“Where have the workers gone? The False Argument Behind Unemployment Insurance Reform




The reaction is to panic when the press headlines and ministers’ declarations parade on the recruitment tensions and on these numerous job offers which would not find takers. “The tragedy is that we have jobs that are not filled. This slows down economic activity”, according to Olivier DussoptMinister of Labour, who makes it an argument in favor of unemployment insurance “stricter when too many jobs are unfilled”.

Understand: if there are tensions, it is that potential workers dawdle at home, preferring to remain unemployed rather than respond to these offers.

Let’s take things in order.

Have the workers disappeared? In reality, if thousands of employees have changed jobs since the start of the health crisis, it has not been to leave the job market. “France did not experience a ‘Great Resignation’ like the United States”recalls the economist Eric Heyer, director of the Analysis and Forecasting department at the French Observatory of Economic Situations (OFCE): “It is, at best, a high turnover, with changes in sector. But the employment rate is progressing, which means that there are more and more employees, even though we are producing as much as before the crisis. » This employment rate was 68% in the second quarter of 2022. This is more than in 2019, and it is the highest level since the 1970s.

No large loss of workers

Thus, if the department of statist

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