The French government will implement stricter unemployment rules this year, affecting cross-border workers who rely on French regulations during periods of unemployment.
Unemployment insurance compensation rules will be tightened starting 1 December "to move towards full employment" and "value work even more," confirmed French PM Gabriel Attal in an interview with La Tribune Dimanche.
The compensation duration will be reduced to 15 months "under current conditions," meaning the unemployment rate staying below 9%, for those under 57. Additionally, workers must have been employed for 8 of the last 20 months to qualify for benefits, compared to 6 of the last 24 months currently.
Gabriel Attal specified that the government would issue a decree on 1 July so the reform can take effect on 1 December. This update requires changes to the information systems of France Travail (formerly Pôle Emploi).
Compensated salary for seniors
The PM confirmed the creation of a "senior employment bonus." This measure allows unemployed seniors who accept lower-paying jobs to combine their new salary with unemployment benefits, maintaining their initial remuneration for one year. Unions reported that salaries could be compensated up to 3,000 euros. Attal also mentioned the creation of a “senior index” and a potential “senior permanent contract.”
The bonus-malus system on short contracts, criticised by employers and currently limited to seven sectors, will be reviewed for possible extension. Attal instructed the Minister of Labor to consult on which sectors might be included and at what pace.
Encouraging employment
Attal confirmed a new threshold to reduce compensation duration further if the unemployment rate falls below 6.5%. The General Confederation of Labour (CGT) reported that this reduction could be an additional 15 percentage points, totaling a 40% reduction to 12 months. Attal emphasised the need for more incentives when growth picks up and the unemployment rate decreases.
“This is not just an economic reform but one of prosperity and activity," Attal stated. The Ministry of Labor expects 3.6 billion euros in savings from the reform and projects an increase of 90,000 people in employment.
Reactions and criticism
The tighter affiliation condition alone is expected to generate 2.8 billion euros in savings, according to the CGT. Denis Gravouil from CGT called it "an anti-youth measure" and criticised the government's alignment with employer interests. Olivier Guivarch of CFDT added that the reform's primary goal appears financial, forcing people into low-quality jobs and short contracts to reduce spending quickly.
