The unemployment insurance benefits will see a 1.2% increase starting from July 1, as announced by Unédic. This decision was made during an Unédic board of directors meeting where representatives of employees and employers voted in favor of the increase. Unédic defended its decision, stating that it takes into consideration both the economic situation and the financial stability of the unemployment insurance system.
This adjustment follows two previous increases in 2023 (1.9% on April 1 and 1.9% on July 1). The average annual increase over the last five years has been 1.68%. According to Unédic, this increase for 2024 will amount to 150 million euros for the unemployment insurance system, and 210 million euros for 2025.
However, not everyone is happy with this decision. The CGT union criticized the minimal rate of adjustment and deemed it inadequate. The union emphasized that the government and employers are failing to address the inflation rate and pointed out that a controversial unemployment insurance reform is scheduled to be implemented on December 1.
The CGT also accused employers and the government of being obstinate, targeting unemployment insurance recipients while far-right benefits from social distress. The union expressed concern about the upcoming reform and lack of consideration for those relying on unemployment benefits’ economic conditions.
In conclusion, while Unédic’s decision to increase unemployment insurance benefits by 1.2% starting from July 1 may be seen as positive step towards ensuring financial stability for job seekers who are receiving benefits out of a total of around 2.7 million beneficiaries, there are concerns about its adequacy and implementation process among certain groups such as CGT union who believes that it fails to address inflation rate and impending reforms that could negatively impact job seekers’ economic conditions.
