Rising unemployment: Jean-Pierre Farandou focuses on youth and senior employment

With unemployment reaching 8,3% in the second quarter of 2026 and potentially rising further by the end of the year, the Minister of Labour wants to focus his efforts on young people and older workers. Employment rates for these two groups remain lower than those observed in several other European countries.

Faced with a deteriorating job market, Jean-Pierre Farandou intends to prioritize the professional integration of young people and the retention of older workers. The Minister of Labor defends this approach as the unemployment rate reached 8,3% of the active population in the second quarter of 2026, its highest level since the fall of 2020.

According to the latest forecasts from the National Institute of Statistics and Economic Studies (Insee), it could reach 8,6% by the end of the year. In the second quarter, unemployment among 15-24 year olds already stood at 21,6%, up 2,5 points year-on-year.

“I don’t have the power to stop the war in Iran,” one of the factors cited to explain companies’ cautious approach to recruitment, acknowledges Jean-Pierre Farandou. “But I’m not saying we can’t do anything, and we are primarily focusing on two subsets of the labor market: youth employment and employment for older workers.”

Employment rates still far from the best European levels

In 2025, the employment rate for 15-24 year olds in France was 35%, a level close to the European Union average. However, it remained significantly lower than that of the Netherlands, where 76% of young people were employed, largely due to the more frequent combination of studies and work.

France also has 11% of young people who are neither employed, nor in education, nor in training. The Ministry of Labour therefore considers it necessary to improve the transition between initial training and sustainable entry into the labour market.

Among older workers, the employment rate for 60-64 year olds reached 44% in 2025, 11 points lower than the European average. However, it continued to rise, reaching 45,8% in the second quarter of 2026, according to INSEE.

"We have to do it because one way to work more is to make seniors and young people work more, and there, we know that, even if we are making progress, (...) we are far from the top European performers," the minister emphasizes.

A new app aimed at young people

The youth employment plan presented in the spring sets the objective of increasing their employment rate to 40% by 2030. However, this strategy is not accompanied by additional financial resources.

One of the announced measures is set to enter its operational phase soon. The "1JeuneDesSolutions" application will bring together government services that can support young people in their career guidance, training, and job search.

Its trial is planned for October 2026 in four regions, before a nationwide rollout announced for mid-November. The Government hopes to make systems currently spread across several administrations and public operators more transparent.

Funding for apprenticeships under pressure

Jean-Pierre Farandou claims to have obtained arbitrations allowing the preservation of the main funding devoted to apprenticeships, after several reductions undertaken since 2025.

“In the current climate, preserving budgets is already a victory,” the minister stated. He also hopes to secure an additional 50 million euros for struggling apprenticeship training centers (CFA) and 83 million euros for training programs considered priorities, particularly in defense and nuclear energy.

These funds remain limited, however, in view of the savings envisaged for the "Work and employment" mission in the draft budget for 2027. According to the decisions made public in July, this mission could lose 2,8 billion euros.

At the same time, the High Commission for Strategy and Planning recommends continuing the development of apprenticeships, with the objective of increasing the number of apprentices to 1,5 million in 2035, a level comparable to that of Germany.

The personal training account is more employment-oriented

The 2027 budget bill is also expected to include savings on the personal training account (CPF). The government wants to direct more funding towards training directly linked to a career plan or to the needs of the labor market.

"The person will remain free to choose their training, but they will be encouraged by the system to choose training that makes sense from a professional project point of view and less helped" in other situations, explains Jean-Pierre Farandou.

This development could directly affect construction and public works companies, which face persistent recruitment and skills renewal needs, but its precise modalities will depend on the final content of the draft budget.

HR tools to keep older workers employed

For employees in the second part of their careers, the ministry is working on a tool designed to help companies, particularly small and medium-sized enterprises, to develop human resources management plans adapted to the aging of their workforce.

The proposed application would offer employers various scenarios for retaining their senior employees longer or recruiting new ones. It would also allow individuals entering the second half of their careers to anticipate their training, mobility, or work-life balance needs.

The minister is not ruling out any of the levers currently being discussed to contain pension spending in the 2027 budget. Partial de-indexing of pensions, elimination of the 10% tax allowance or modification of the generalized social contribution (CSG) of retirees: Jean-Pierre Farandou believes that we must have the courage "to use all or part of these instruments, according to a dosage that remains to be determined".