Despite Emmanuel Macron’s knife blows, France remains one of the most generous countries in Europe with the unemployed. In fact, job seekers can receive benefits for two and even three years if they are over 55 (see chart). It is, for example, much more than in Portugal (18 months max) or Ireland (9 months). However, other neighbors offer more generosity to the unemployed, such as the Netherlands (38 months) or Belgium where the term of compensation is unlimited.
During his first term, Emmanuel Macron cut back some benefits. In 2019, his reform did not affect the duration of the compensation, but it tightened the eligibility requirements for the scheme: it is now necessary that you have worked for six months in the past two years and not returned four months during the last 28. “France has the distinction of gaining unemployment rights faster than anywhere else. in Europe,” analyzes Francois Fontaine, a professor at the Paris School of Economics.
The Elysee host also limited the allowances for executives who could receive up to 7,500 euros per month, an unprecedented situation in Europe. From now on, if their total allowance exceeds 4,500 euros per month, it will decrease by 30% after six months of unemployment. But the president wants to go further with a new reform aimed at compensating job seekers for less time when the economy is doing well. This will help bring our system a little closer to that of our neighbors.
In the UK, subsistence aid for the unemployed
Across the channel, you better not be unemployed. In fact, an unemployed person receives only the so-called living allowance which is given to all in the same way with the main objective of fighting poverty. The low amount is between 67 and 84 euros per week depending on the age and marital status of the beneficiary, or 280 to 350 euros per month.
It has nothing to do with France and Germany where the unemployed person is compensated in proportion to the duration and salary of the job he held.
In terms of eligibility, it is among the shortest in OECD countries with 182 days of benefits (26 weeks) for all beneficiaries, regardless of their age and the amount of contributions they paid before they became unemployed.
At the same time, an unemployed person can benefit from Universal Credit, a type of retirement allowance that, since the introduction of the 2012 Social Welfare Reform Act, brings together six social minimums (tax credit for dependent children, housing allowance, income and unemployment) assistance allowance Disabled Workers Allowance, and Employment Tax Credit). This major social reform aims to simplify the current benefit system and strengthen the incentive to return to work. To benefit from it, you must have a low income or not work, be over 18 and have savings of less than 18,000 euros.
This unemployment insurance system, supplemented by the reform of the social minimum, is presented by the Conservative Party as a souvenir. According to the conservatives, thanks to these devices, the unemployment rate fell to 3.8% in the first quarter of 2022, almost full employment. Despite the crisis.
