The conditions of compensation for the long-term unemployed will change with the pension reform. The Minister of Labor Olivier Dussopt wants to raise the minimum age of access to longer compensation. This is a consequence of the pension reform.
There will be changes for the long-term unemployed. The Minister of Labor Olivier Dussopt wants to raise by 2 years the age of access to longer compensation for older unemployed people. A development which is the consequence of the increase in the legal retirement age to 64 years. However, he does not wish to shorten the duration of compensation, as the Minister of the Economy Bruno Le Maire would like.
What are the current conditions?
The maximum duration of compensation for the unemployed through unemployment insurance is currently:
- Up to 52 years: 18 months
- 53 and 54 years old: 22.5 months
- 55 years and over: 27 months
What might change in the future?
Olivier Dussopt wants to increase the minimum age of long-term job seekers from 55 to 57 years to have the right to benefit from long-term compensation. This increase over 2 years must “be accompanied by a training effort”, indicated the Minister of Labor on France Inter.
Why increase the minimum age?
This drop from 55 to 57 years is a consequence of the increase in the legal minimum retirement age to 64 years. “We would like this increase to be postponed by two years to be consistent with what we have done on the retirement age and because we know that one of the challenges of full employment in France is the employment of seniors” , explains Olivier Dussopt. The Minister of Labor regrets that France has “systems” which encourage “taking seniors out of the labor market”. The employment rate of seniors is much lower in France than the European average.
Olivier Dussopt defends conventional dismissal
Always on France Inter, Olivier Dussopt defended conventional dismissal, a system which, according to him, should not be used to force seniors to leave the labor market earlier. “Conventional termination is a tool for fluidity, there are 500,000 of them per year,” he argued. “Year after year, the share of conventional terminations in the reasons for termination of permanent contracts remains stable, from 11% to 12%,” he argues. “We want to find the means” so that “conventional dismissal is not used as a tool for exiting the labor market for seniors, but that it remains a tool of fluidity, freedom” and reciprocal agreement between the employee and his employer, detailed the minister.