Unemployment Insurance Reform and Benefit Increase
The French government, under the leadership of President Emmanuel Macron, is set to adopt a decree for the reform of unemployment insurance at the start of July. Although the publication missed the initial deadline of June 30, job seekers should not experience any delays in receiving their compensation. This reform introduces several changes, including tightening the conditions for receiving an allowance and reducing the maximum duration of coverage from 18 to 15 months. The reform also establishes a new threshold at 6.5% for countercyclicality and targets senior employees. However, these changes will not take effect until December 1, allowing time for economic improvement.
Unédic Announces 1.2% Increase in Unemployment Benefits
In addition to the upcoming reform, Unédic has announced a 1.2% increase in unemployment insurance benefits starting July 1. This revaluation will affect approximately 2 million compensated job seekers out of the total 2.7 million. Despite the revaluation, the CGT union has criticized the increase as insufficient, especially in light of inflation. Unédic justifies the increase by considering the economic context and the financial balance of the unemployment insurance system. The organization highlights that this increase follows two previous revaluations in 2023 and that the annual revaluation average over the last five years has been 1.68%. For 2024 and 2025, the revaluation amounts are projected to be 150 million euros and 210 million euros, respectively.
- The reform's delay in publication, although unprecedented, should not impact the timely receipt of compensation for job seekers. The five-month delay for the reform's implementation is intended to allow for a more favorable economic situation that can create new jobs.
- The CGT union has expressed strong opposition to the revaluation, describing it as extremely weak and criticizing both the government and employers for what they see as targeting unemployment insurance recipients. The union also highlights the upcoming legislative elections and the controversial nature of the new unemployment insurance reform set to be implemented on December 1.
