New unemployment rules: at least 1.2 million losers?

How many people are affected by the tightening of unemployment compensation rules? While the reform has just been translated into a decree which will be submitted for consultation to the social partners on July 16, the question has opened a new battle of figures between the government and the unions.

New unemployment rules: at least 1.2 million losers?

How many people are affected by the tightening of unemployment compensation rules? While the reform has just been translated into a decree which will be submitted for consultation to the social partners on July 16, the question has opened a new battle of figures between the government and the unions.

According to the Ministry of Labor, a "maximum" of 600,000 to 700,000 people would lose rights in the new system which will gradually come into force from November 1, 2019. An estimate significantly below those of the unions. Based on a technical document from Unedic, they consider that at least 1.2 million people would be affected by the tightening of the rules introduced by the reform.

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The reform of the method of calculating unemployment benefit is the cause of this massive effect. From April 1, 2020, this will be modified: the reference salary will be established on a monthly basis and no longer on the days worked. With this new rule, people who do not work full time will automatically see their daily allowance reduced. The government's objective is clear: that no unemployed person touch unemployment more than by working. He thus hopes to reduce "permittence", the practice of alternating periods of unemployment and short contracts, without ever signing a permanent contract.

But that's not all: the tightening of the conditions for access to compensation will also affect nearly 500,000 people, according to Unédic. From November 2019, it will be necessary to have worked 6 months out of 24 (instead of 4 months out of 28) to be entitled to an allowance.

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Same logic for “rechargeable” rights, which concern job seekers already compensated by unemployment insurance. Short working periods will no longer suffice to generate new entitlements in the future. Whereas previously, it was enough to have worked one month to extend the duration of compensation by the same amount, from November 2019 it will be necessary to accumulate at least six months.

How many people in total would be affected by these changes? The reform could affect well over 1.2 million people, but the unions are sticking to this figure for the time being. "The same person can be affected by several rules, explains Marylise Léon, deputy general secretary of the CFDT. For example, accumulating an allowance now calculated on a monthly basis and no longer being able to recharge their rights".

Clearly, some precarious workers risk suffering a double penalty: by chaining contracts lasting less than six months, for example, their compensation will be lower and their contract, which is too short, will not allow them to open rechargeable rights. . A study commissioned by the CFDT from Unédic, scheduled for the start of the school year, should make it possible to see things more clearly.

A completely different analysis is being made regarding the other emblematic measure put forward by the government: the degressiveness of the allowance for high salaries. As of November 1, new unemployed earning more than 4,500 gross per month (ie 3,500 euros net) will see their compensation reduced at the start of the 7th month of compensation by 30% with a floor nevertheless set at 2,261 euros per month. Only exception: job seekers over 57 years old.

According to the calculations of the Ministry of Labor, 80,000 people would be affected by this degressivity. But Unédic's calculations suggest a lower number. All ages combined, 65,000 people, i.e. 2.5% of the total number of benefit recipients receiving compensation, received compensation greater than 4,000 euros net in 2107. But to assess the number of people really concerned, it will be necessary to remove from this range of jobs over the age of 57 which generally have the highest incomes. How many are they ? Impossible to quantify for the moment, but overall, the number of people concerned will not exceed 2%. A measure above all symbolic therefore.