May 30, 2023

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Unemployment insurance in France: Government backs down

French Prime Minister Elisabeth Bourne is temporarily withdrawing a further tightening rule if unemployment falls below 6%. The draft decree on the new reform of unemployment insurance, released to the social partners on December 23, raised a wave of anger on the part of various trade unions who found that the duration of the compensation has been reduced.40% if the unemployment rate is below 6% (against the current 7.3%).

Faced with this situation, the Minister of Labor, Olivier Dussopt, before taking this decision, there is the possibility of tightening if unemployment falls below 5%, i.e. “full employment”, but not for 6. % Announced at the end of November, the decree provides for a 25% reduction in the duration of compensation for all jobseekers who open their rights to unemployment insurance from February 1 in mainland France. Note that the quota on 6% will not be used in 2023 unless the conditions of application are drawn up in consultation with the relevant social partners.

Sami Nemili with agencies / Les Inspirations Ego

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