Social benefits for joblessness: stakeholders summoned to discuss reducing expenses
The French government, under the leadership of Prime Minister François Bayrou, has unveiled a reform plan for unemployment insurance, aiming to generate significant savings over the next decade. The proposed reform, set to take effect from 2026, targets annual savings of €2 to €2.5 billion from 2026 to 2029, rising to about €4 billion by 2030 [2][3][4][5].
The reform focuses on tightening eligibility criteria, shortening the duration of benefit payments, and enforcing stricter regulations on mutual contract terminations [2][4][5]. The government believes these measures will curb abuses in the system and encourage people to remain or return to work sooner.
Specifically, the government plans to tighten eligibility criteria for receiving unemployment benefits, making it harder to qualify. The duration of benefit payments is set to be reduced, and stricter rules will be applied to mutual contract terminations, which are viewed as a way to bypass resignation and potentially inflate benefit claims.
However, the proposals have been met with significant opposition from trade unions. The unions have denounced the proposed changes as happening in the middle of summer, finding it unacceptable. They warn that the reforms could increase insecurity and poverty without clear evidence of improving employment outcomes [4].
The government, prioritising swift action, has expressed a desire for social partners to contribute to the budgetary effort through negotiations on unemployment insurance [4]. However, the inter-union (CGT, FO, CFDT, CFE-CGC, CFTC) has denounced the proposed changes as an attack on the rights of workers and a violent plan of cuts [6].
The unions have been vocal in their opposition to the proposed changes in unemployment insurance. Marylise Léon, the number one of the CFDT, has called the reform "total slaughter for job seekers" [7]. The changes will also affect employees in permanent contracts who have lost their jobs due to the announced reduction in the duration of indemnification.
Moreover, the reform includes modifying the minimum duration of employment and the reference period required to open unemployment benefits. This recent agreement between social partners was reached in November 2024 [8]. The goal is to reach at least €4 billion in savings in a steady state regime from 2030 [8].
Despite the opposition, the financial situation of the unemployment insurance regime and the need for more people to be working necessitates evolving the rules of unemployment insurance [1]. The reform is expected to address budgetary issues and contribute to stabilizing public debt by 2029 [4].
The reform in unemployment insurance, driven by the French government, delves into the realms of finance and business, aiming to save €4 billion by 2030. This endeavor, met with resistance from trade unions, involves stricter regulations in eligibility criteria, benefit payments, and mutual contract terminations, potentially impacting general-news domain due to the controversial nature of the changes.
The unions, voicing their concerns over the proposed reforms, warn that these alterations could lead to increased insecurity and poverty without concrete evidence of improved employment outcomes, touching upon the intersection of politics and labor rights.
