Unemployment insurance: a decree that set fire to the gunpowder

On Saturday evening, for his wishes to the French, Emmanuel Macron hammered it straight: “We must work more”. To do this, the head of state confirmed a “gradual” extension of the career as part of the upcoming pension reform. He was also pleased with the adoption a few weeks ago of the unemployment insurance reform, despite great opposition from the left and the National Assembly in the National Assembly.

“A failure of form”

But in this difficult issue – the law allows the duration of the compensation for the unemployed to be modulated according to the economic situation – the “fight” may not be over. A draft decree, revealed just before Christmas, once again set fire to the gunpowder. The text, which manages to put all the unions on their backs, stipulates that the duration of the compensation for the unemployed will be reduced by 40% – and not 25% – when unemployment falls below 6% (it is currently at 7.3%).

In fact, the measure has very little chance of being applied: the decree in question only applies until 31 December 2023, and on that date there is little hope that unemployment will be brought below 6%. However, if the government maintains its full employment target (5% unemployed) for 2027, in this case, and provided it is maintained beyond 2023, the mechanism may apply…

The controversial text will be considered by the social partners on 10 January within the framework of the National Commission for Collective Bargaining, Employment and Vocational Training. But his opinion will only be indicative. On the other hand, the Council of State must also take a closer look at this decree in the coming days and could, the unions hope, censure the measure on the grounds that it should have been discussed upstream.

Meanwhile, a minister with France Inter acknowledged “a failure on the form”. And another stone in the government’s shoes in these first days of the year.


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