Unemployment insurance: the last component comes into force

The unemployment insurance reform aims to encourage all those who can to work more and to promote more sustainable employment paths.

Announced in the Council of Ministers, the third and final stage of the unemployment insurance reform is now effective.

As of December 1, 2021 :

  • the duration of activity necessary to open rights to unemployment insurance increases to 6 months (compared to 4 months previously);
  • for jobseekers whose gross monthly salary was greater than approximately €4,500, a downward modulation of their allowance may take place at the end of the 6th month (instead of the 8th month as provided, by way of derogation, from the 1st last July).

As a reminder, these two conditions had been temporarily suspended from a return to better fortune of the employment situation »in order to take into account the economic and social consequences of the Covid-19 epidemic.

The decree of the Minister in charge of Employment of November 18, 2021 noted the achievement on October 1, 2021 of the two criteria for a return to better fortune. The publication of this decree leads to the reinstatement of the affiliation condition at 6 months and of the 6-month period before application of the degressivity, from 1 December.

A dynamic labor market

The implementation of the unemployment insurance reform takes place in a context of strong economic recovery which is reflected in a very favorable volume of hiring:

• growth estimated at more than 6% for the year 2021;

• 2.2 million new hires in the second quarter: the level of employment in France exceeded its pre-crisis level;

• a historic decrease of 270,000 job seekers without any activity between April and July;

• an unemployment rate of 8%, ie a return to the pre-crisis level.

Reminder of the two previous stages of the reform:

  • since October 1a new calculation of unemployment benefits based on the average wages received during a given period, and no longer only on the days worked, is used for all new job seekers;
  • since July 1a bonus-malus applies to approximately 20,000 companies in the seven sectors that consume the most very short contracts (the first modulation of their contribution to unemployment insurance will take place in September 2022 on the basis of hiring behavior recorded on the period July 2021-June 2022).

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