Full employment "closer than ever", according to Dussopt

"For six years, we have had a goal which is full employment and this goal today is achievable, it is even closer than ever," said the minister during a press conference, a year after his arrival. Grenelle Street.

“The French economy since 2017 has created 1,7 million jobs, with an unemployment rate falling from 9,5% to 7,1%” in the first quarter of 2023, underlined Mr. Dussopt.

And "more than half of the hires on contracts of more than a month" are on permanent contracts, an increasing rate, he welcomed.

To achieve full employment, "the French economy must be able to create by the end of the five-year term around 800.000 jobs if we want to reach 5% unemployment", detailed the minister.

This figure is increased to "1,3 million if we wish that reaching 5% unemployment be accompanied by a reduction in what is sometimes called the + unemployment halo + and thus go even further in terms of reality of full employment," he continued. The "halo" refers to people wishing to return to the job market but who are not considered unemployed by the International Labor Office (ie actually looking for a job and being immediately available to take one).

Asked about job creations, which are showing the first signs of a decline, the minister announced the objective of "staying on this trend and perhaps disproving certain forecasts" which are not very optimistic.

He also recalled that the social partners should soon negotiate a new unemployment insurance agreement, since the current rules are subject to "a deadline of December 31, 2023".

The law provides for a four-month negotiation period, preceded by consultation on the government's "framework letter" which sets objectives (including savings) to be achieved. This letter will therefore have to be sent "before the summer", he stressed.

The letter will respect the law, "which now provides that the economic situation and the job market are modulation criteria", he also underlined, a point strongly contested by the unions. Since February 1, the duration of compensation for all jobseekers who open rights has been reduced by 25%.