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Professionalization contracts: towards the end of state assistance in hiring?

Will government aid run out soon? The Ministry of Labor has sent out a draft decree to social partners that seeks to abolish recruitment assistance for workers working and studying under training contracts from May 1, according to the document seen by AFP on Monday. In July 2020, during the health crisis, the government introduced aid to support youth employment with a bonus for hiring apprentices or employees on training contracts under the age of 30.

This assistance has been extended several times and, from 1 January 2023, was set at 6,000 euros for both minors and adults. The draft resolution, originally published by the AEF, states that it is about “the abolition of assistance to employers of workers under professionalization agreements for contracts concluded from May 1, 2024.” This work-study agreement combines practical training in a work situation and theoretical training in a training organization or company.

Budget cuts

Thus, from 1 May 2024 until the end of the year, a one-time assistance of 6,000 euros will be reserved for the recruitment of apprentices for initial training. In the draft resolution, the government emphasizes that “in view of forecasts for growth and an increase in the state budget deficit (5.5% of GDP), measures have been taken to reduce the state budget through individual measures relating, in particular, to the sphere of employment and vocational training.

By cutting the budget by 10 billion euros last February, the government effectively planned to cancel 1.1 billion loans for the Jobs and Employment mission. This should be facilitated by the abolition of recruitment assistance under training contracts. “Attacking training and work is not a good idea,” the Confederation of SMEs concluded.

“If the need to reduce public spending is not discussed, it is appropriate to target those whose benefit has not been proven,” CMPE emphasized in a press release, calling on “the government to carefully evaluate the issue of ending” this assistance. . According to the latest data from Dares, at the end of January 2024, 90.7 thousand people were working on professionalization contracts. In 2023, 116,000 professionalization contracts were awarded.

Source: Le Parisien

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