Economists propose a complete overhaul of the governance of unemployment insurance

While the government is currently consulting the social partners on the adaptation of its 2019 reform to the crisis, the CAE, a body that advises the Prime Minister, is looking beyond and deals, in this note published Tuesday, with the governance of the system which should also in principle be discussed in 2021.

In the sights of economists Pierre Cahuc, Stéphane Carcillo and Camille Landais, the singularity of France, "the only country whose unemployment insurance rules are in principle set by the social partners" within Unédic.

In principle only, because since 2018, it is the executive which "has the hand" by the framing letter of negotiations imposed on the social partners "who only have a front role", underlined Mr. Cahuc during a press conference, as proved by the 2019 reform adopted by decree after the failure of a very forced negotiation.

This specific organization of unemployment insurance "is ineffective, because it does not allow real coordination between the parameters of unemployment insurance and all social benefits, compulsory contributions and employment policies" decided by the state.

In addition, it "does not allow all stakeholders to participate in an evolution of the coverage and financing of unemployment insurance likely to integrate a wider set of professions and sectors", they judge.

They therefore suggest the creation of a "Negotiating Council", made up of representatives of employees, employers but also self-employed workers and the State, which would be responsible "for drawing up the parameters of unemployment insurance and the organization of support for job seekers ".

Refusing to propose a nationalization, they believe that the power within this council "could be shared in a balanced way thanks to decision rules based on votes".

This council would be based on the work of a High Council for Unemployment Insurance (HCA) which, on the model of the Pension Orientation Council, would be responsible for "bringing out a shared expertise" on the consequences of the parameters. compensation and the effectiveness of support measures for job seekers.

Despite the work of Unedic, Mr. Cahuc regrets "a lack of information on the effects of unemployment insurance rules on the behavior and trajectories of individuals".

In addition, according to Mr. Carcillo, the expertise of Unédic "does not achieve consensus" within the State and "this creates a problem of confidence", as during a controversy in 2019 between the Ministry of Labor and Unédic around a note from Pôle emploi affirming that some job seekers, alternating short contracts and unemployment, could receive more than their previous average salary.

The Negotiating Council would prepare proposals, debated in Parliament in the Social Security financing bill "in order to ensure the coherence of the entire socio-fiscal system".