Unemployment insurance reform on track

Adopted by the National Assembly at first reading, the bill triggers the possibility of modulating allowances according to labor market trends.

The National Assembly adopted this Tuesday in first reading, by 303 votes against 249 and 11 abstentions, the unemployment insurance reform bill which authorizes the government to modify the parameters of compensation by decree. This vote, which is not a surprise after the debates of the past two weeks, has garnered the support of LR deputies, and criticism from the Nupes and RN oppositions. The text, which will go to the Senate before returning to second reading in the Assembly, plans to extend until the end of 2023 the current unemployment insurance rules, resulting from the 2019 reform. Above all, it will allow the government to modulate the parameters so that unemployment insurance is “stricter when too many jobs are unfilled, more generous when unemployment is high”according to the commitment made by Emmanuel Macron last March during the presidential campaign.

This is, in detail, “make sure to be more reactive, more inciting” to the resumption of employment, according to Olivier Dussopt, who carries the bill. The Minister of Labor has notably undertaken not to touch “to the amount of compensation”, but the conditions of entry into the scheme (you must have contributed 6 months out of the last 24 to be compensated) and the duration of compensation (2 years maximum for those under 57, 3 years beyond) may ‘be. After a phase of consultation with the social partners – whose positions are known: the unions are against, the employers for – from next week, the government will then decide by decree on the precise form and modalities that this modulation of unemployment insurance. It aims to come into force at the start of 2023. The government sees the modulation of the unemployment insurance scheme as an essential brick to achieve the objective of full employment in 2027, i.e. an unemployment rate of about 5%, against 7.4% currently, which has not been seen in France since the end of the 1970s.

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