Despite Emmanuel Macron’s penknife blows, France remains one of the most generous countries in Europe with its unemployed. In fact, job seekers can receive benefits for two years and even three years if they are over 55 (see graph). It is for example much more than in Portugal (18 months maximum) or in Ireland (9 months). However, other neighbors offer even more generosity to the unemployed, such as the Netherlands (38 months) or Belgium where the duration of compensation is unlimited.
During his first term, Emmanuel Macron trimmed some benefits. In 2019, its reform did not affect the duration of compensation but it tightened the conditions of eligibility for the scheme: it is now necessary to have worked six months over the last two years and no longer four months over the last 28. “France was characterized by an acquisition of unemployment rights faster than elsewhere in Europe”, analyzes François Fontaine, professor at the Paris School of Economics.
The host of the Elysée also capped the allowances of executives who could receive up to 7,500 euros per month, an unprecedented situation in Europe. From now on, if their allowance exceeds 4,500 euros gross per month, it will drop by 30% after six months of unemployment. But the president wants to go even further with a new reform which aims to compensate job seekers for less time when the economy is doing well. This will help to bring our system a little closer to that of our neighbours.
In the United Kingdom, subsistence aid for the unemployed
Across the Channel, it is better not to be unemployed. Indeed, an unemployed person only receives a so-called subsistence allowance granted to everyone in the same way with the main aim of combating poverty. Its low amount varies between 67 and 84 euros per week depending on the age and family situation of the beneficiary, or 280 to 350 euros per month.
Nothing to do with France and Germany where an unemployed person is compensated in proportion to the duration and salary of the job he held.
As for the duration of the benefit, it is one of the shortest in OECD countries with 182 days of benefits (26 weeks) for all beneficiaries, regardless of their age and the amount of contributions they have. paid before becoming unemployed.
At the same time, an unemployed person can benefit from a universal credit, a sort of super allowance which, since the introduction of the Welfare Reform Act 2012, brings together six social minima (tax credit for dependent children, housing allowance, income, unemployment assistance allowance, allowance for disabled workers, employment tax credit). This major social reform aims to simplify the existing benefit system and strengthen the incentive to return to work. To benefit from it, you must have a low income or not work, be over 18 years old and have savings of less than 18,000 euros.
This unemployment insurance system, supplemented by the reform of social minima, is displayed by the conservative party as a trophy. According to the Tories, it is thanks to these devices that the unemployment rate fell to 3.8% in the first quarter of 2022, almost full employment. Despite crisis.
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