Unemployment insurance reform: what if France took inspiration from Canada?

The Secretary of Labor says he wants “go further” on the reform of unemployment insurance. Olivier Dussop calls for “think about the next step“, as our remuneration regulations must also take the situation on the labor market into account.

Among the examples that France could follow, Canada. “When things are going well we tighten the rules and when things are going badly we relax them.“, summarizes the minister to explain the Canadian system. “The higher the local unemployment rate, the more generous the compensation“, simplifies Olivier Dussopt.

>> Labor shortage: The government wants to get the unemployment insurance reform underway very quickly

In fact, protection in Canada is not the same for everyone. The amount of compensation paid varies from region to region and depends on one criterion: the regional unemployment rate. The principle is very simple: the higher the local unemployment rate, the more generous the compensation.

Specifically, in the Calgary economic region of Alberta, where the unemployment rate is 13%, you are entitled to 30 weeks of compensation calculated over the best 14 weeks, provided you have worked at least 420 hours. On the other hand, if you are in the same situation but live in Ottawa, Ontario, the unemployment rate is only 6%. It is therefore necessary to have worked more hours to be entitled to unemployment. The calculation is made over a slightly longer reference period, which is usually less favourable, and the aid is only paid over 16 weeks. So in the first case you get more than 400 euros for six months, in the other 350 euros for 3 months.

For Canadians, this model helps trigger a faster return to work. According to a study by According to Unedic, 40% of job seekers in Canada remain unemployed for less than a month. In France, the opposite is true: almost 40% remain unemployed for more than a year.

Some economists believe this is not necessarily a model to follow and judge it would be complicated to set up here. economist Bruno Coquet, Unemployment insurance expert linked to OFCE wonders: “What problem does this solve?” He also recalls that in France “Almost every second unemployed person is not compensated“, and can therefore not be suspected of wanting to exploit the system.