France has cracked down on unemployment benefits payments, with the government on Monday announcing new rules that are expected to return up to 150,000 people to the workforce early next year.
Labor Minister Olivier Dussopt said the period in which job seekers can claim benefits will be shortened by 25% from February.
Under existing rules, people under the age of 53 can claim compensation for up to two years after unemployment. If you are over 55, this will extend her to 3 years.
“We maintain one of the most generous systems in Europe,” said Dussopt.
The aim of the reforms is to help people get back to work faster, as recruitment is becoming more difficult in many sectors despite high inflation and the effects of the war in Ukraine.
France’s unemployment rate is 7.3 percent – Lowest in 14 years – However, youth unemployment rate is high at 16.3%.
The new rule comes after a law passed by Congress last week giving the government the power to change the unemployment system by order, depending on labor market conditions.
BFMTV reported that the government intended to change the rights of job seekers according to France’s unemployment rate.
If the unemployment rate falls below 9%, or if it falls for three consecutive quarters, the country will enter a ‘green period’, during which benefits will be paid 25% less.
If the unemployment rate rises above 9% or increases by 0.8% in a quarter, the country enters a “deficit period” and benefits are fully restored.
https://www.rfi.fr/en/france/20221121-france-curbs-unemployment-benefits-in-bid-to-fill-job-vacancies France curbs unemployment benefits to fill vacancies