To reduce unemployment, the government is considering reducing the number of regular layoffs.

Rising unemployment irritates Matignon. To cope with the recent rise in the number of job seekers, which is expected to continue at the end of the year, according to INSEE, the government wants to take emergency measures.

Among them, the government would like to reform traditional methods of ending relationships, according to La Tribune. This system allows the employee and his employer to terminate the employment contract amicably, and the former to leave the company while receiving unemployment benefits.

“The Executive notes that this system, created in 2008 as a result of an agreement between employers and trade unions, is now having a detrimental effect on employment,” the newspaper notes. Indeed, regular layoffs increased from 395,151 in 2017 to 503,526 in 2022, an increase of 27.4% over five years, according to Labor Department data.

“The world of work has changed”

As a result, the government believes that this system encourages employees not to resign in order to register with Pôle emploi and thus put pressure on public accounts, which is not possible when resigning or leaving office. A paradox, notes La Tribune, which recalls that this system was created in order to help employers fire an employee who has become undesirable and “remove the fear of hiring” and thus promote employment.

Tightening the unemployment benefit system for older people could be another area being explored by Economy Minister Bruno Le Maire, who wants to cut the duration of unemployment benefits for people over 55 to bring them in line with other unemployed people.

In recent months, the executive branch has already dealt with traditional breaks. Since September 1, the cost of such peaceful dismissal for employers has increased. The social package that the latter must pay from the compensation paid increases from 20 to 30%, within the limits of twice the annual social security ceiling, that is, 88,000 euros.