To reform unemployment insurance coverage, the government wants to take inspiration from Canada
Benoit Tessier by way of Reuters
Unemployment – Extend the reform by setting an goal: to flip all guidelines, particularly on compensation, in direction of a return to employment. Labor Minister Olivier Duspot confirmed the matter in an interview the parisian Published this Tuesday, July 26, the first axis and line of considered the new unemployment insurance coverage reform, introduced by Emmanuel Macron throughout his July 14 interview.
After the first spherical of discussions on the administration of the scheme, “from the starting of the college 12 months” will likely be the topic of session with the social companions. The textual content also needs to be first on the menu for Parliament when it returns from summer season recess from early October.
And earlier than these talks, the government appears to have already discovered inspiration overseas. “Our compensation guidelines should take into consideration the situations of the job market, as does, for instance, Canada”, defined to the every day newspaper the former minister of the price range, who changed Elisabeth Bourne Rue de Grenelle. “When issues are going nicely, we tighten the guidelines and when issues are going badly, we chill out them”, he added, noting that the first a part of the reform, which tightened compensation situations, will expire on November 1, 2022 and It should be expanded.
Towards an evolutionary interval of compensation?
What does the new rule imply, relative to financial situations and job market dynamics? “This evaluation will both be handed by standards, reminiscent of a number of consecutive quarters with employment enchancment, or by a committee that offers us suggestions. The situations haven’t been fastened”, Sleip Olivier Dussopt, when his ministry introduced this Wednesday, July 27 an extra discount in the variety of unemployed registered with Pôle workers between April and June (3,165,900 in class A, a lower of 15, 1% over a 12 months, and A , 5,436,100 for B and C, i.e. -8.9% over one 12 months).
“The newest reforms have modified the interval for recharging the every day reference wages and entitlements. The observe will be opened, on the compensation interval and its declining nature”, added the Minister. In Canada, there isn’t a deterioration in the quantity of compensation in relation to the unemployment fee. On the different hand, the variety of hours required to open one’s entitlement and the compensation interval range at the degree of every province in accordance to the well being of the labor market.
The greater the unemployment fee, the decrease the variety of hours required to open the entitlement. In an space with an unemployment fee beneath 6%, you need to work 700 hours to qualify for unemployment compensation, in contrast to 525 if the fee is between 10.1 and 11%.
In the similar philosophy, the greater the unemployment fee, the longer the compensation interval. “Thus, an individual who has labored 700 hours will likely be eligible for 14 weeks of compensation in the event that they reside in an space with an unemployment fee beneath 6%, whereas they are going to be eligible for 36 weeks of compensation in an space with an unemployment fee. above 16%”, explains Unedic analysis.
“In Canada, 40% of job seekers have been unemployed for lower than a month and solely 7% have been there for greater than a 12 months. In France, it is simply the reverse!”, argued the parisian Eric Chevy is vice-president of the Confederation of Small and Medium-Sized Enterprises (CPME), an employers’ group that defends and promotes this concept to tackle the “employment tensions” reported by employers in lots of sectors.
“The labor market does not work that means.”
A doctrine not shared by all economists and commerce unions. Many of them warn of a mannequin that can’t essentially be transferred to the particularities of financial exercise and the labor market in France, and even to the degree of coaching of our job seekers. “The labor market does not work that means”, defined CFDT’s quantity two, Merylise Leon, to our colleagues at the finish of final week. the world.
“In most circumstances, firms’ labor issues level to a scarcity of abilities, working situations and remuneration, and likewise that, sadly, many employers have no idea how to recruit”, he added. The CGT for its half fears the reforms will likely be tantamount to establishing elevated “poverty” and “diminished rights” for the unemployed.
2 billion euros in financial savings behind the unemployed (unemployment insurance coverage reform). Each returned 5 billion… https://t.co/5jHGFcIqVY
— Mathilde Pannot (@MathildePanot)
Unions additionally level to the incontrovertible fact that the government has but to assess the impression of the measures, which take impact from 2021, earlier than “shifting additional” on unemployment insurance coverage reform. Also, at the finish of 2021, 30% of individuals registered with Pôle Emploi weren’t compensated. A discount in the entitlement interval – when the unemployment fee falls – will subsequently now not encourage them to settle for job provides.
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