The ways of the government to correct the partial unemployment scheme

With more than twelve million people potentially covered by partial unemployment paid 100% by the state, France has the most generous system in Europe. And the government wants to fix it.

Yes, several avenues are on the table to review this partial unemployment scheme. First because it is very expensive: 50 billion euros to be paid by the State, where Germany for example has mobilized only ten billion.

On the other hand, as the state covers 100% of partial unemployment, we realize that certain companies are suddenly encouraged to reduce their production or to close certain units. Or delay the resumption of activity, which could explain why French production has more than fallen than in neighboring countries. It is striking compared to Italy: the epidemic was more violent but the production decreased less. However, partial unemployment is much less generous, it is capped at 1,200 euros per employee. 

Against 84% of the net salary with us. Is that what will be reviewed? 

First track indeed, the government could reduce the level of salary supported: currently, the State compensates up to 4.5 times the minimum wage. Some in government would like to lower this threshold to 3.5 times the minimum wage.

The other avenue under study is above all a reduction in the rate of support: instead of 100%, the State would only cover 90% of the cost and leave 10% to the company . Except for sectors subject to an administrative ban such as hotels and restaurants which would still be 100% covered.

This reform of the conditions of partial unemployment is however delicate. The risk, if the state reduces its support too much, is that companies do not make layoff plans. But the government's message is clear: once the summer is over, the generosity of the state cannot continue as it does today. We simply cannot afford it.