In its efforts to reform unemployment insurance, the government is struggling to find support. Unsurprisingly, trade unions are vehemently opposed to tightening the conditions for compensation for job seekers. Many economists also criticize the justification for such a project, as do several figures within the majority. However, more surprisingly, reservations have also been expressed by the administration, long before the controversy broke out. In a note revealed by Mediapart on March 28 and obtained by Le Monde, the executive branch was warned as early as the fall of 2023 by two services of the Ministry of Labor: the Directorate for Research, Studies, and Statistics (Dares) and the General Delegation for Employment and Vocational Training (DGEFP). At the time, the possibility of further tightening the conditions for compensation for the unemployed was not openly discussed. But the Elysée was already considering it, as shown in the six-page document produced by state agents, which is undated but would date back to September or October 2023. When asked about the possibility of further shortening the duration of compensation for job seekers, the authors of the note considered such an idea “not very opportune.”
This expertise was in response to “a request made in the context of the fall of 2023, which was one of a possible failure of the bipartite negotiation on the unemployment insurance agreement,” said Labor Minister Catherine Vautrin during a hearing at the National Assembly on April 3. The social partners, who manage the compensation system through Unédic, had entered into discussions seven months ago, which resulted in an agreement remodelling the parameters of unemployment insurance on November 10, 2023. Before this compromise, Dares and DGEFP were asked to examine a scenario “preferred by the President of the Republic”: once again reduce the period during which unemployed persons receive benefits. Such a measure had already been implemented by the government in February 2023 under the principle of “counter-cyclicality.” The aim was to provide harsher provisions for the unemployed when the economy is doing well and more generous ones when activity slows down. As a result, the duration of compensation for individuals under 53 was reduced from twenty-four to eighteen months. Emmanuel Macron’s project envisaged lowering this threshold even further to fourteen and a half months, aiming to “encourage more” rapid return to work.
The potential reform of unemployment insurance proposed by Emmanuel Macron raises significant opposition from trade unions, economists, and even within the majority. The idea of further tightening the conditions for compensation for job seekers is seen as controversial and unjust by many. The warning issued by the administration before the controversy erupted indicates the complexity and possible negative consequences of such a reform. The disagreement between different stakeholders highlights the challenges in finding consensus on a topic that affects a significant portion of the population. The discussions and negotiations surrounding this issue continue to be heated and contentious, reflecting the deep divides and opposing viewpoints within society on the best way to approach unemployment insurance reform.
