The partial unemployment support scheme had prevented waves of layoffs. With its gradual end from June, the situation is likely to change warned the Minister of Economy and Finance on Europe 1 this Friday.
"There will be bankruptcies and there will be layoffs in the coming months," said Bruno Le Maire. "Many sectors are very hard hit" by the crisis and "even if the economy rebounds, it does not restart at the same rate" as before, he explained.
"We must encourage the resumption of activity"
In this context, the government plans to reduce the coverage of short-time working "so as to encourage a return to activity since that is what will ultimately allow us to create jobs and create prosperity" , continued the minister.
"It is necessary to encourage the resumption of activity, it is not a normal situation to have the State which supports 100% of the wages", he underlined.
8.6 million employees would have benefited from the system
According to an estimate by the Ministry of Labor, the cumulative number of requests for partial unemployment authorization has reached 12.7 million since March 1, while 8.6 million employees would have benefited from the device which helped to avoid an explosion in the unemployment in France, whose economy has been hit hard by the coronavirus.
A defund of partial unemployment will result in redundancies, warned on Wednesday François Asselin, president of the Confederation of small and medium-sized enterprises (CPME), which asks the State to wait until September before any "significant" reduction in its takeover charge.
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