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The new reform was presented on Monday

The new unemployment insurance reform is coming. The measure, which aims to change the compensation rules according to the state of the labor market, is presented on Monday against the background of still strong and unanimous opposition from the trade unions.

The “labor market” bill passed Thursday by parliament triggers the ability to modulate certain rules by decree, with the executive branch’s idea that unemployment insurance be “stricter when too many jobs are unfilled, more generous when unemployment is high “.

Reform “unfair” and “ineffective for all unions

Despite the opposition of all the trade unions to the very idea of ​​this graduation, condemning an “unfair” and “inefficient” reform, the text provided for a consultation launched in October. During a final multilateral meeting with the social partners on Monday morning, Labor Minister Olivier Dussopt will announce “the selected arbitrations”.

Against the backdrop of anger over purchasing power, the government ruled out touching the compensation level from the start. The Labor Minister also assured that he would not affect the conditions for access to social security, i.e. the condition of having worked six months over a reference period of 24 months.

What duration of the compensation?

The duration of the compensation remains. According to several union and employer negotiators who this week held bilateral discussions with Olivier Dussopt’s cabinet, the minister will announce that, in addition to a minimum floor of 6 months, the duration of the compensation will be modulated according to the evolution of the unemployment rate for all people who will have finished their contract after 1 February 2023.

When the labor market situation is judged to be good, the duration of the compensation will be reduced by a coefficient to be published on Monday, probably between 0.75 and 0.9 according to these sources.

The uncertainty of the unemployment rate

The way to assess unemployment – threshold, dynamic – will be specified on Monday, but if unemployment stays around the current level, i.e. 7.3-7.4% since the start of the year, the reduction in duration will apply according to these. sources.

The director insists that it is urgent in light of companies’ recruitment difficulties, and makes this reform a first stone in his strategy to achieve full employment by 2027, i.e. an unemployment rate of around 5% against 7.4% currently. A goal which the minister considers “always achievable”.

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