The Minister of Labor, Health and Solidarities, Catherine Vautrin, along with the Minister of Economy and Finance, Bruno Le Maire, attended a meeting in Paris on March 12, 2024. The government is meeting with parliamentarians from all parties on March 28 to try to find savings, and the announcement of a new unemployment insurance reform has been met with criticism from labor unions and opposition groups. Prime Minister Gabriel Attal asked the Minister of Labor, Catherine Vautrin, to prepare for new negotiations with labor and employer unions on unemployment insurance, suggesting a reduction in the maximum duration of compensation from eighteen to twelve months. Labor unions immediately deemed this proposal unacceptable.
While opposition parties accused the government of trying to “pick the pockets of the French” in search of cost-cutting measures, Catherine Vautrin stated that the reform aims to “guide people back to employment” with support and training efforts. She emphasized the importance of social dialogue in the process, stating that “the longer you stay unemployed, the less likely you are to find a job.” The Minister stressed the need for quick support to help people find jobs, noting that unemployment insurance is intended to finance training opportunities to help individuals rebound from unemployment.
In response to questions about the surplus in unemployment insurance, Vautrin assured that the trajectory is expected to reach 11 billion by 2027 and emphasized that the system also funds training programs. She described helping those in unemployment as a social investment, allowing individuals to bounce back from their situation. However, labor unions believe the reform is primarily driven by budgetary concerns, with concerns raised that the government is targeting the most vulnerable individuals. The CGT and CFDT unions have criticized the government’s approach to using unemployment insurance as a budget adjustment tool.
The proposed reform may include changes to the duration of employment required to qualify for unemployment benefits, as well as exploring other factors in the reform process. The intention is to engage in negotiations with labor and employer unions to reach a comprehensive reform of the unemployment insurance system by autumn. The Minister made it clear that the focus of the reform is not on reducing the amount of compensation paid to individuals. The government’s aim is to address the challenges faced by the unemployed and ensure a more effective and efficient system for supporting them in finding employment.
