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The explosion of the unemployment insurance deficit

2021-02-24T19:34:22.925Z


Unedic anticipates the destruction of 230,000 jobs and an unemployment rate of 10.1% in 2021. As tension mounts between the unions and the Minister of Labor, Élisabeth Borne, over the controversial unemployment insurance reform, the financial outlook for the regime is particularly alarming. A year ago, Unedic was counting on a return to balance this year. But the crisis has called into question his forecasts: its deficit has exploded to 17.4 billion euros in 2020 and should still weigh 10


As tension mounts between the unions and the Minister of Labor, Élisabeth Borne, over the controversial unemployment insurance reform, the financial outlook for the regime is particularly alarming.

A year ago, Unedic was counting on a return to balance this year.

But the crisis has called into question his forecasts: its deficit has exploded to 17.4 billion euros in 2020 and should still weigh 10 billion euros this year before settling at 6.4 billion in 2022, according to the new estimates from Unedic (the unemployment insurance manager) released on Wednesday.

Read also:

Why the government does not want to ... cancel its reform of unemployment insurance

The next few months promise to be particularly difficult.

To build its forecasts, the joint body "

assumes that employment maintenance measures should fade over the course of the year.

The end of aid and a still fragile economic situation would lead to the destruction of 230,000 jobs in 2021

”.

The recovery in net job creation would not take place before

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Source: lefigaro

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