Prime Minister Gabriel Attal announced in an interview with La Tribune on May 25 that starting from December 1, 2024, the rules for unemployment benefits will be tightened. The goal is to move towards full employment and further value work. The duration of benefits will be reduced from eighteen to fifteen months for individuals under 57 years old, if the unemployment rate remains below 9%. Currently, individuals aged 53 and 54 can be compensated for up to 22.5 months, and those aged 55 and older up to 27 months. The first tier of benefits will disappear, and longer compensation will be reserved for those aged 57 and above.
Additionally, individuals will need to have worked eight months in the last twenty months to qualify for benefits, compared to six months in the last twenty-four months currently. The monthly benefit will be standardized to be the same every month based on a 30-day system, instead of varying between 28 to 31 days. This change will result in a loss of five or six days of compensation for individuals who were not employed for an entire year. Attal mentioned that a decree will be issued on July 1 to implement these changes by December 1.
The government is considering the introduction of a “bonus employment senior” to support older individuals returning to work. This bonus will allow unemployed seniors who take lower-paying jobs than their previous positions to combine their new salary with unemployment benefits for a year, thereby maintaining their initial earnings. The system of bonus-malus on short-term contracts, a campaign promise by Emmanuel Macron in 2017, is being reviewed for potential extension to additional sectors.
The duration of unemployment benefits will be reduced by 25% for individuals under 57 years old when the unemployment rate remains below 9%, in accordance with counter-cyclical principles in effect since February 2023. If the unemployment rate falls below 6.5%, the reduction will be increased to 40%, resulting in significant additional savings. The government aims to encourage more people to enter the workforce as the economy rebounds, leading to increased financing for the system.
The reform has been met with criticism from unions, with the CGT calling it “criminal” and highlighting concerns about the impact on young individuals and the alignment with employer interests. Critics argue that the aim of the reform is financial rather than promoting employment opportunities. The focus on cost-cutting measures may inadvertently push individuals into low-quality jobs or precarious employment situations to make ends meet, raising concerns about the well-being of unemployed individuals and their families.
