"Killing the social state" How did the French government enter a war with the unemployed?

At a time when the number of unemployed people in France is reaching record numbers due to the economic recession that the country is experiencing, Macron's government plans to declare war on this group by launching a project to reform the government subsidy system directed in their favor.

After the French government vowed to reform the retirement system targeting the working class, which was met with overwhelming rejection, represented by the workers taking to the streets on January 19, the turn came for the unemployed, who will also be subject to a special reform, which will cover all their earnings from subsidies. government.

This comes at a time when the number of French people who have lost their jobs is multiplying as a result of the economic recession, and before that due to the economy being affected by the pandemic. Experts also expect the country's unemployment rate to continue to rise to record levels.

More than 5 million disabled

According to the estimates of the French Agency for Employment (Pôle Emploi), the number of job seekers reached about 5.11 million people, indicating a decrease in this number by about 9.4% on an annual basis compared to last year.

On the other hand , the French polling and statistics institution "Insee" said that the unemployment rate in France, during the year 2022, reached the threshold of 7.4%. Young people represent the category that suffers the most from the lack of work, as 18.9% of people between 15 and 24 years do not have a job, followed by people between 25 and 49 years with 7.1%.

And Le Monde newspaper revealed that the decrease indicated by the employment agency’s numbers does not necessarily mean a decrease in the number of the unemployed. Rather, the French newspaper attributed this to the high rate of automatic deletion of job seekers’ files from the agency, which amounted to 10.4%, because they did not meet the conditions or did not respond to the requests. her correspondence.

On the other hand, economists expect unemployment rates to continue in France during the current year due to the widespread economic recession in the country. And according to the expectations of the French Central Bank for the year 2023, the unemployment rate will continue its upward path to exceed 8%.

In the same context, the Central Bank expects the increase in French GDP to slow sharply, from 2.6% in 2022 to 0.3% in 2023, according to the “most likely” scenario of the general economic outlook for the next three years. This decline will be followed by a rebound to 1.2% in 2024, down from the 1.8% previously forecast.

Macron's "war" on the unemployed?

Last December 24, the French government offered its social partners to reform the "employment loss insurance" fund , through which it intends to significantly reduce compensation days, thus depriving the unemployed of this social assistance that helps them live until they find a job.

The number of compensated days according to this system may reach, at its maximum, 24 months for those under 53 years of age, and 30 months for those older than that. According to the government's project, the number of these days will be reduced by 25%, instead of the 40% that was scheduled before it collided with the unions' rejection.

In addition to this, the French government passed a decree allowing it to change this system whenever it wanted, in connection with the health of the labor market, the unemployment rate index, and the reserves of the fund designated for this purpose.

It is expected that this reform will be implemented in early February, and will continue to work until December 31, which is an extendable period pending the government's release of a permanent version of the reform, through its dialogue with unions and employers.