Unédic - Unemployement Insurance 2011 : annual report


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2011 was a year full of contrasts for the Unemployment insurance scheme due to changes in the economic
situation. The good performance of the first half of the year made it possible to restore financial
equilibrium due to the strong jobs market and the stabilisation of unemployment. But this trend
did not last beyond summer. 2011 was also a valuable and constructive year with the agreement of
March 2011 giving rise to the new convention on Unemployment insurance, an agreement in favour
of youth employment, the decision by the board of directors to increase the benefits paid to jobseekers,
the creation of the improved job security contract (CSP), etc. The social partners also set out their
expectations with regard to Pôle emploi, primarily to ensure that jobseekers and companies benefit
from a service adapted to their situation.

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Unédic - Unemployement Insurance 2011 : annual report

  2. 2. EDITORIAL 3 KEY EVENTS 2011 4 1. UNEDIC KEEPS PACE WITH CHANGES IN THE ECONOMIC SITUATION 6 2011: the stifled recovery 8 2. JOINT MANAGEMENT CONSOLIDATES ITS ROLE 10 Unemployment insurance benefit 12 Transfer of recovery of employers’ contributions to Acoss 14 Improved arrangements for jobseekers 16 The return-to-work support measures are maintained 18 Unemployment insurance: a continuously improving system 20 New objectives for Pôle emploi (job centre) 22 The CSP replaces the CRP and the CTP 24 3. UNEDIC PLAYS AN ACTIVE ROLE IN THE EVOLUTION OF THE PUBLIC EMPLOYMENT SERVICE 26 Responsibility, autonomy and transparency of joint management 28 GLOSSAry 302| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011
  3. 3. EDITORIALA CONSTRUCTIVE YEAR forJOINT MANAGEMENT OF THEUNEMPLOYMENT INSURANCE SCHEME2011 was a year full of contrasts for the Unemployment insurance scheme due to changes in the eco-nomic situation. The good performance of the first half of the year made it possible to restore finan-cial equilibrium due to the strong jobs market and the stabilisation of unemployment. But this trenddid not last beyond summer. 2011 was also a valuable and constructive year with the agreement ofMarch 2011 giving rise to the new convention on Unemployment insurance, an agreement in favourof youth employment, the decision by the board of directors to increase the benefits paid to jobseek-ers, the creation of the improved job security contract (CSP), etc. The social partners also set out theirexpectations with regard to Pôle emploi, primarily to ensure that jobseekers and companies benefitfrom a service adapted to their situation.Unédic set out to ensure that all of these decisions and guidelines were implemented and guar-antee the quality of the service provided by the Unemployment insurance system through Pôleemploi, the Social Security Contribution Collection Agencies (Urssaf) and other recovery operators.This resulted, in particular, in the successful negotiation of the new tripartite agreement which bindsUnédic, the State and Pôle emploi, in Acoss assuming responsibility for the recovery of contributions,which until then had been handled by Pôle emploi. All these events have one thing in common: theyhighlight the ability of the social partners and the Unemployment insurance scheme to adapt to ourcountry’s social and economic changes.At the heart of the Unemployment insurance scheme, Unédic continues to act to ensure its effic-iency. It prescribes the unemployment benefit rules decided by the social partners, supervises theirimplementation, produces the studies and forecasts required to stimulate joint consideration andcontinues to develop the Unemployment insurance system. Unédic also finances it under the bestpossible conditions. It conducts itself in a completely transparent manner and according to the rulesof the agreement on joint management. Unédic intends to be open to its environment and to listento its public and those who are tackling unemployment, dedicated to the social partners.As President of Unédic since January 2012, I intend to consolidate the achievements of recent yearsin order to strengthen the role of the social partners as part of a rigorous approach to joint manage-ment. I am keen to review and give clear expression to the arrangements that it creates, whilecontinuing to play an active role in changes in the labour market.Unédic will continue working to enhance the performance of the Unemployment insurance scheme,for the benefit of employees, companies and jobseekers, by ensuring that the operators apply therules and provisions chosen by the social partners in close collaboration with them. Jean-François Pilliard President of Unédic ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 3
  4. 4. KEY EVENTS TRANSFER NATIONAL BOND ISSUE JOINT LETTER START OF THE CREATION OF THE RECOVERY INTERPROFESSIONAL TO PUBLIC RENEGOTIATION OF OF THE IMPROVED OF CONTRIBUTIONS AGREEMENT ON THE AUTHORITIES THE TRIPARTITE JOB SECURITY TO ACOSS UNEMPLOYMENT AGREEMENT BETWEEN CONTRACT (CSP) INSURANCE SCHEME UNÉDIC, THE STATE AND PÔLE EMPLOI 1st 25 31 6 11 31January March March May May May 2011 2011 2011 2011 2011 2011 The recovery Formalised by a new Unédic raises Relating to the The negotiation The national of Unemployment convention on 1.5 billion Euros monitoring, support enabled Unédic and interprofessional insurance Unemployment on the bond and redeployment of the State (joint agreement on the contributions insurance, this market, in order jobseekers, this joint financers of Pôle CSP brings about from 1.6 million agreement: to finance the letter serves as a emploi) to set out the merger employers is now - takes into account Unemployment framework to the the guidelines of between two the responsibility pension reform; insurance scheme. renegotiation of the the operator’s existing jobseeker of the Urssaf - improves the Unédic/State/Pôle service offer for the support agencies. conditions for emploi tripartite next three years. arrangements, the taking agreement. CRP and the CTP. responsibility for jobseekers receiving a disability pension; - abolishes the specific rules for taking responsibility for KGEREY seasonal unemployment; - encompasses the conditions for a decrease in the Unemployment insurance contribution rate. FI U S 4| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 2011
  5. 5. ASSURANCE CHOMAGE 2 11 ENTRY INTO FORCE 1.5% INCREASE ENTRY INTO FORCE THE UNÉDIC BOARD SIGNATURE OF THE OF THE NEW IN UNEMPLOYMENT OF THE IMPROVED JOB VALIDATES THE NEW STATE/ UNÉDIC/PÔLE CONVENTION ON BENEFITS SECURITY CONTRACT TRIPARTITE EMPLOI TRIPARTITE UNEMPLOYMENT (CSP) AGREEMENT AGREEMENT INSURANCE 1st 1st 1st 28 11June July September November January2011 2011 2011 2011 2012 Signed by the Employers’ This increase is The Improved job The Unédic Board Result of a Associations, Medef, CGPME decided by the social security contract gives a positive negotiation and UPA, as well as by the partners who sit on (CSP) is the result opinion on the draft throughout 2011, Trade Unions CFDT, CFE- the Unédic Board of the merger of tripartite agreement the agreement is CGC, CFTC and CGT-FO, the of Directors. existing between the State, signed on 11 new convention will apply arrangements: Unédic and Pôle January 2012 under until 31 December 2013 the Personal emploi for the 2012- the aegis of Xavier with regard to benefits. redeployment 2014 period. The Bertrand, Labour The rule on the rate of agreement (CRP) and text sets out the Minister. contribution will continue to the Occupation priorities for Pôle be in effect until 31 transition contract emploi and defines December 2016. (CTP). its financing arrangement.16.6 MILLIONEMPLOYEES AFFILIATED TO THE 1.6 MILLIONUNEMPLOYMENT INSURANCE scheme AFFILIATED COMPANIES€31.7 BN AMOUNT OF RECOVERED CONTRIBUTIONS2.2 MILLION €26.3 bn AMOUNT OF BENEFITSJOBSEEKERS RECEIVINGUNEMPLOYMENT INSURANCE PAID IN 2011 ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 5
  6. 6. UnEdic PACE KEEPS
  7. 7. 1WITH CHANGES IN THE ECONOMIC SITUATION As of the second quarter, 2011 resulted in a negative balance between job creation and loss. For the Unemployment insurance scheme, the increase in the number of unemployed people receiving benefits resulted in a deficit situation. At the same time, the Unédic Board adapted its financial strategy for the Unemployment insurance scheme to market operations, in order to ensure the continuity of benefit payments. ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 7
  8. 8. ECONOMIC SITUATION 2011,THE STIFLED RECOVERY After a dynamic first quarter in terms of job creation, activity slowed down and unemployment began to creep back up in the second half of the year. The economic situation in 2011 remai- year, it increased by 2.9 billion Euros. ned particularly unstable. After a After a downward trend in 2010, progressive consolidation of growth in the number of unemployed people 2010 and a dynamic first quarter 2011, increased in 2011 by 147,000 people in economic activity in France remained category A jobseekers, while categories unchanged. The continuation and B and C registered 75,000 additional deepening of the sovereign debt crisis jobseekers receiving benefits.AGGREGATE DEBT in the euro zone, in addition to the At the end of December 2011, theOF 14.1 BILLION budgetary consolidation measures Unemployment insurance scheme paid weighed heavy on growth from the out to 2.2 million people, i.e. 87,000EUROS AT THE second quarter. While during the first more than in the same period the pre-END OF 2012 half of the year, 102,000 jobs were vious year.May 2012 estimate created, the slow-down in activityAccording to the nevertheless resulted in the loss of Change in behaviourupdated forecast for the 23,000 jobs in the second half of thefinancial equilibrium of year. 2011 was also characterised by Unédic also recorded a change in job-the Unemployment the decline in temporary employment seekers’ behaviour. Thus, the practiceinsurance scheme for and an expected increase in the of reduced activity continued to2012, the labour market working population. increase in 2011 (10.5% compared tosituation will contribute Until the middle of the year, Unédic’s 2010), bringing the number of people into an increase in the finances benefited from the dynamic reduced activity who are entitled toscheme’s expenditureand a decrease in nature of the wage bill. At the end of benefits to 1.1 million, whether recei-revenue. Unédic is the first half of the year, there was a ving benefits or not.expecting a negative brief return to a balance between There are also more jobseekers setting"revenue/expenditure" expenditure and revenue. However, the up their own business. In 2011, 75,000balance that would worsening economic situation in the business start-up candidates were sup-increase the scheme’s second half of the year resulted in ported by the Unemploymentdeficit by 3 billion Euros. renewed disequilibrium. At the end of insurance scheme within the frameworkAt the end of the year,the Unemployment 2011, the Unemployment insurance of the Assistance for the takeover orinsurance debt would net debt was 11.5 billion Euros, versus creation of a company (ARCE) arrange-reach 14.1 billion Euros. 8.6 billion at the end of 2010. Over the ment.8| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011
  9. 9. 1 + 87,000 JOBSEEKERS RECEIVING BENEFITS IN 2011 COMPARED UNEDIC KEEPS PACE WITH CHANGES IN THE ECONOMIC SITUATION TO 2010. OVER THE YEAR, THE TOTAL NUMBER OF JOBSEEKERS (CATEGORIES A, B AND C) INCREASED BY 222,000. WAGE BILL AND UNEMPLOYMENT TREND IN JOBSEEKERS RECEIVING INSURANCE CONTRIBUTIONS (year-on-year in %) UNEMPLOYMENT INSURANCE (level in thousands) Year-on-year % Workforce in millions 6.0 3.5 Forecast 5.0 3.0 4.0 Year-on-year % 3.0 6.0 2.5 2.0 Forecast 5.0 2.0 1.0 4.0 0.0 3.0 1.5 -1.0 2.0 -2.0 1.0 1.0 -3.0 0.0 Jobseekers in category DEFM A 0.5 -4.0 -1.0 Unemployed people receiving unemployment insurance Wage bill -5.0 -2.0 0.0 Contributions 2007 2008 2009 2010 2011 -6.0 -3.0 2007 2008 2009 2010 2011 2012 Source: Pôle emploi, Unédic, Unédic forecasts. Fields: unemployed people -4.0 receiving unemployment insurance, excluding CRP, CSP, CTP, training, Source: Pôle emploi, Unédic, Unédic Forecasts Wage bill seasonally adjusted data for the whole of France. -5.0 Contributions -6.0 2007 2008 2009 2010 2011 2012 8 UNEDIC KEEPS PACE Billions of Euros Balance = Revenue - expenditure CHANGE IN CASH BALANCE Net banking indebtedness In 2012, the debt level would reach - 14.06 billion Euros Forecast 4 0 -4 WITH THE CHANGE Billions of Euros Balance = Revenue - expenditure Net banking indebtedness IN FINANCIAL -8 8-12 Forecast 4-16 0-20 2007 2008 2009 2010 -4 2011 2012 MARKETS -8 -12 -16 -20 2007 2008 2009 2010 2011 2012 Source and forecasts: Unédic 2011 was characterised by the instability of the financial markets and by their preference for short-term investments. In order to carry out its missions, Unédic adapted its financial strategy. Half (51%) of Unédic’s debt (11.5 billion Euros at the end of 2011) was financed by bond issues, and the remainder (49%) by commercial papers. By issuing the latter, it was possible to supplement the financing under very satisfactory rate conditions. However, this strategy did not protect the Unemployment insurance scheme from a possible interest rate hike. This is why for 2012 Unédic set the objective of progressively re-balancing its sources of financing by once again prioritising mid-term and long-term borrowing. ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 9
  10. 10. JOINT MANAG
  11. 11. 2EMENT CONSOLIDATES ITS ROLE Transfer to Acoss of the recovery of Unemployment insurance contributions, negotiation of the tripartite agreement between the State, Unédic and Pôle emploi: Unédic guarantees the social partners managerial and decision-making autonomy. ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 11
  12. 12. UNEMPLOYMENT INSURANCE BENEFITS Mandatory insurance against the risk of job loss To encourage a swift return to work Private sector employees and employers contribute to the Unemployment insurance scheme together Paid by Pôle emploi €1.1 billion in return- to-work assistance €29 billion in Unemployment insurance benefits • Registration of jobseekers • Calculation and payment of their benefits • Support towards returning to work • Canvassing of the labour market • Assistance to companies for recruitment • Job search monitoring12| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011
  13. 13. 2 JOINT MANAGEMENT CONSOLIDATES ITS ROLE Deducted by social security organisations Since 1st January 2011, Acoss (Central Agency of Social Security Organisations), CCMSA, CCVRP and the central funds of Monaco and of St-Pierre & Miquelon have centralised recovery for greater simplicity for companies €31.7 billion in contributions Managed jointly Social partners €3 billion for Pôleemploi budget • Finances Pôle emploi • Negotiate and establish up to 64% of its budget unemployment benefit • Implements the convention • Determine the rate of contribution on unemployment insurance of employers and employees to the Unemployment insurance scheme ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 13
  14. 14. R E V E N U E SUCCESSFUL TRANSFER OF THE RECOVERY OF CONTRIBUTIONS The transfer to Acoss of the recovery of employers and employees’ contributions to the Unemployment insurance scheme came into force, as expected, on 1st January. The law of 13 February 2008 set 1st order to maintain the managerial auto- January 2012 as the deadline for the nomy of the social partners. transfer of the mission to recover In partnership with the recovery ope- Unemployment insurance contributions rators, indicators for controlling and and Wage guarantee insurance (AGS) monitoring activity were set out and contributions to the Urssaf agencies. implemented, in order to enable Unédic Committed since 2009, this second to fully play its role to monitor, forecast stage of the Public employment service and engage in the financial manage- reform finished a year before the dead- ment of the Unemployment insurance4.5 MILLION line set by the legislator. This operation is the result of close collaboration scheme.EMAILS between the three institutions involved: A major challengeDuring the second half Acoss (Central Agency of Social Securityof 2010, an extensive Organisations including the Urssaf The recovery of Unemployment insur-information campaign agencies), Pôle emploi and Unédic. On a ance contributions by Acoss alsofor companies preceded national scale, the transfer of the reco- constituted a major challenge for thethe actual transfer of very mission involves 1.6 million scheme: the certification of its accountsthe recovery mission on establishments. in a new context. This was a challenge1st January 2011. 4.5 The aim of the reform is to simplify the because since 1st January 2011,million emails and 5.5million letters were sent formalities of employers, by allowing for Unédic’s revenue had been recovered byto companies, a single declaration and a single pay- an organisation with public establish-accountancy firms and ment to just one organisation, their ment status, and as such was subject topayroll software Urssaf agency, and this shall apply to all different accounting standards. Thepublishers. The result social contributions, Unemployment certification of Unemployment insu-lived up to expectations. insurance contributions and AGS rance accounts required closeFewer than 3contributors out of 100 contributions. collaboration between Unédic’s certi-filed incomplete returns During 2011, Unédic’s role has primarily fying auditors and the Frenchwith the Urssaf been to ensure that deployment was Accounting Court, the certifying body foragencies. carried out under good conditions, in Social Security organisations. >>>14| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011
  15. 15. THE OTHER OPERATORS 2 €25.8 BN INCLUDING PÔLE JOINT MANAGEMENT CONSOLIDATES ITS ROLE EMPLOI, CCMSA AND ACOSS FOR SPECIFIC ARRANGEMENTS, RECOVERED €5.9 BN IN 2011. IN CONTRIBUTIONS RECOVERED BY ACOSS A TWO-YEAR REFORM OF THE PUBLIC EMPLOYMENT SERVICE 19 Deccember 1st January July September 1st january 2008 2010 2010 2010 2011 CREATION OF PÔLE LAUNCH OF THE EMPLOI AND INFORMATION EFFECTIVE TRANSFER ASSUMPTION OF CAMPAIGN FOR OF RECOVERY OF RESPONSIBILITY FOR COMPANIES UNEMPLOYMENT RECOVERY INSURANCE 1ST PILOT PHASE 2ND PILOT PHASE CONTRIBUTIONS FROM OF THE TRANSFER OF OF THE TRANSFER PÔLE EMPLOI TO ACoss RECOVERY IN ÎLE-DE- OF RECOVERY ACROSS FRANCE (530 THE DÉPARTEMENT ESTABLISHMENTS) OF THE RHÔNE (74,000 ESTABLISHMENTS) BETTER DETECTION OF UNEMPLOYMENT INSURANCE CONTRIBUTIONS FRAUD By implementing new control mechanisms, the transfer of recovery also operates to improve the overall fraud detection capacity. In 2011, frauds detected by Acoss, essentially cases of undeclared work, could represent 18.8 million Euros. Social Security’s recovery branch planned several actions in this regard in 2012. Besides prevention and information actions, Acoss is working on developing information exchanges with the tax arena and the other social protection organisations. Unédic intervenes by establishing control operations and by ensuring the coordination of fraud prevention actions between contribution and indemnification.>>> The general working arrangements bet- ramme made it possible to define and monitoring arrangement, thereby gua- ween the two certification authorities optimise the specific procedures for the ranteeing the full managerial autonomy have been regulated by decree since 2010. exchange of, access to and processing of of the social partners in a sustainable Throughout 2011, a joint work prog- accounting information, as well as a joint manner. ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 15
  16. 16. I N D E M N I F I C A T I O N IMPROVED ARRANGEMENTS for JOBSEEKERS The new convention of 6 May 2011, on unemployment bene- fit, resumes the convention drawn up in 2009 while improving its provisions. Signed on 6 May 2011 by Medef, employment (PPAE).GROWTH IN CGPME and UPA, as well as by the The convention of 6 May 2011 includes CFDT, CFE-CGC, CFTC and CGT-FO, the several changes. Besides taking intoREDUCED new convention on Unemployment account the pension reform arisingACTIVITY insurance concerns all employees from the law of 9 February 2010, the whose employment contract termina- text improves the conditions for takingIn 2011, 41% of ted after 1st June 2011. The text, which responsibility for jobseekers receivingUnemploymentinsurance recipients takes into account the provisions of the a disability pension or subject to seas-were working on a national interprofessional agreement onal unemployment. From now on,reduced basis, i.e. 10.5% of 25 March, extends until 31 December unemployment benefit can be combi-more than in 2010, taking 2013 the majority of the benefit rules ned with the 2nd or 3rd categoryinto account the increase arising from the previous convention disability pension, according to thein unemployment. on Unemployment insurance, dated 19 Social security rules (Article R 341-15),Started in 1962, thisarrangement makes February 2009. provided that the income from the lastit possible, subject to job that gave entitlement to rights isconditions, to combine Three changes also combined with the pension. As ofan income and an 1st June 2011, the benefit rules specificUnemployment Among the major principles negotiated to seasonal unemployment were abol-insurance allowance. by the social partners in 2009, there is ished. Those people whose job wasFor 2011, 26.2% one relating to a benefit period equal considered seasonal now receive bene-of Unemploymentbenefit (ARE) recipients from now on to the duration of paid fits under the conditions of the generalcombined income and work (up to 24 months for under 50s), a scheme. The third change to thethe allowance, up by 1.9 single benefit stream and the relaxing convention of 6 May 2011 concernspoints compared to 2010. of conditions to access Unemployment employers. The text establishes theOne out of two benefit insurance (entry into the scheme after conditions for a decrease in therecipients working on a minimum of four months’ work over a Unemployment insurance rate ofa reduced basis (52%) period of 28 months), and finally the contribution, both for employers andtherefore claims anaverage allowance of granting of benefit subject to an active for employees, according to the768 Euros that they search for work, within the framework scheme’s operating profit/loss and itscombine with an income of a personalised plan for accessing debt level.corresponding to anaverage of 69 hoursof work per month.16| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011
  17. 17. 24,712,675 Jobseekers receiving benefits Jobseekers receiving Unemployment insurance JOINT MANAGEMENT CONSOLIDATES ITS ROLE 2,052,408 2,477,992JOBSEEKERS Jobseekers receiving Solidarity benefit 425,583iN 2011(monthly average) Benefit recipients 2,667,342 Jobseekers in training or conversion 182,842 CSP, CRP, CTP conversion 70,850 Training Unemployment Insurance 78,642 Training Solidarity BenefitSource: Pôle emploi, Unédic (DEFM 33,350A, B, C, D, E + DRE) State early retirees 6,508 Not receiving benefits 2,045,333UNEMPLOYED PEOPLE RECEIVING BENEFITS BY AGE AND SEX ARE ARE and AREF casual workers ARE and AREF and AREF in the entertainment industry Temporary workers Women Men Women Men Women Men 60 ans and over 60 ans and over 60 ans and over 55 to 60 55 to 60 55 to 60 50 to 55 50 to 55 50 to 55 45 to 50 45 to 50 45 to 50 40 to 45 40 to 45 40 to 45 35 to 40 35 to 40 35 to 40 30 to 35 30 to 35 30 to 35 25 to 30 25 to 30 25 to 30 20 to 25 20 to 25 20 to 25 under 20 under 20 under 20 200,000 150,000 100,000 50,000 0 50,000 100,000 150,000 200,000 6,000 4,000 2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 20,000 10,000 0 10,000 20,000 30,000 40,000 50,000Field: Whole of France - Source: FNA PEOPLE RECEIVing AN ARE4,576,000 OR AREF BENEFIT AT LEAST ONCE IN 2011, FOR AN AVERAGE OF 2,183,000 PEOPLE RECEIVING BENEFITS EVERY MONTH.UNEMPLOYMENT 2010 2011 Change over one yearINSURANCE Filed Cases Admission decisions 8,154,024 2,164,376 8,249,291 2,194,917 1.2% 1.4%ACTIVITY Rejection decisions First payments 2,537,662 3,521,971 2,414,166 3,628,176 -4.9% 3.0%IN 2011 Including write-backs 1,092,214 1,135,486 4.0% Cessations of payment 3,366,291 3,492,902 3.8% Including resumption of work 673,081 725,211 7.7% Including end of regulatory rights 1,024,088 1,071,422 4.6% Field: Unemployment insurance, all benefits, whole of France. Source: STMP. Gross data. ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 17
  18. 18. I N D E M N I F I C A T I O N THE RETURN TO WORK SUPPORT MEASURES ARE MAINTAINED The convention on Unemployment insurance of 6 May 2011 maintains and reinforces the support measures encouraging a return to employment. In order to make it easier for them to Euros per year. Included in these bene- return to work, unemployment benefit fits are training courses, employer’s recipients may use their benefits in the assistance within the framework of a form of assistance granted according to professional training contract and mea- their individual situation. The three sures designed to lift the barriers to the arrangements provided for in 2009 have active search for or return to work: relo- been maintained by the new convention cation assistance, driving licence funding, on Unemployment insurance of 6 May childcare assistance for single parents 2011. They concern compensatory not receiving Unemployment benefit.A COMPENSATORY allowance upon redeployment (ARD) inALLOWANCE UPON the event of taking up a lower-paid job Special extended measures than the previous one, assistance for theREDEPLOYMENT takeover or creation of a company (ARCE) The new convention also maintainsReserved for people in the form of capital paid in two instal- special benefits for employees affectedwho cannot benefit ments, and finally the option to combine, by short-time working. These measuresfrom the combination of under certain conditions, the unemploy- had been taken by the social partners inUnemployment benefit ment benefit with a salary (reduced reaction to the economic crisis of 2009.with their pay, the activity). Alongside these provisions In 2011, Unédic contributed 20 millioncompensatory financed directly by the scheme, Unédic Euros to financing the Long-termallowance uponredeployment makes it also contributes to benefits accessible to reduced activity arrangement (APLD),easier to take up a all jobseekers, whether or not they fall which provides for the payment oflower-paid job under the Unemployment insurance additional short-time working allow-(minimum difference of scheme. This contribution is made ances for employees experiencing an15% per equivalent hour within the framework of its contribution extended reduction in activity beneathof work). It concerns to the financing of the operating costs of the legal or contractual work period. Thisbenefit recipients aged Pôle emploi. This financing at a rate of arrangement was maintained in 2011.50 or over, and thosewho have been 10% of employers’ contributions to the The initial financial package of 150 mil-receiving benefits for at Unemployment insurance scheme lion Euros, granted by the social partners,least 12 months. represents approximately 3.0 billion was not used in full.18| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011
  19. 19. 2€ 976.6 M PAID TO ASSIST JOBSEEKERS TAKING OVER OR CREATING JOINT MANAGEMENT CONSOLIDATES ITS ROLE COMPANIES. IN 2011, 74,476 RECIPIENTS OF UNEMPLOYMENT INSURANCE BENEFITED FROM THIS ARRANGEMENT. 76% = 2 paymentsARCE RECIPIENTS 50 557 557 50 45,24 % % 45,24 41 779 779 41 37,38 % % 37,38 = 1 paymentRE-REGISTERED 50 557 41 779 45,24 % 37,38 % 24 % moins de moins de 25 aAS UNEMPLOYED 18 218 218 18 16,30 % % 16,30 19,4% 4,6% de 25 à 25 à 29 de 29 ans de 30 à 30 mo de 39 à 39 ans de 40 à 40 de 2 de 49 à 49 ansAll the recipients who received Assistance for 50 ans ou 50 ans ou plu3 dejobseekers taking over or creating218 18 a company Field: benefit recipients having 16,30 % Not received at least one ARCE Total de10 Total 100,0 4in a single payment re-register as jobseekers payment in 2007 re-registered Re-registered Source: FNA, benefits file 50 awithin five years. Tot ARCE RECIPIENTS ARCE RECiPIENTS ARCE RECIPIENTS BY LEVEL OF BY SEX (%) BY AGE BRACKET (%) GENERAL EDUCATION (%) Others (Basic education, Lower than CAP or BEP 8.9 8.9 no training etc.) 2.8 vocational qualification 4.4 10.5 10.5 Women BaccalaureateWomen - 25 - 25 CAP/BEP or level or 29.4 29.4 25 to 29 to 29 25.4 25.4 25 18.3 8,9 10,5 18.3 equivalent equivalent 21.9 Femmes 30 to 39 to 39 30 vocational 40 - de 25 ans 40 to 49 to 49 qualification 29,4 Men Men 50 + 50 + de 25 à 29 ans 25,4 18,3 37.4 70.6 70.6 de 30 à 39 ans 36.9 36.9 de 40 à 49 ans Hommes 50 ans et + Field: benefit Baccalaureate 2011 2 70,6 36,9 recipients receiving Non ren ARCE for the first Non renseign level + 2 years 17.0 Aucune time. Aucune form Field: recipients of Unemployment insurance including training, CTP-CRP-CSP as at 30 November 2011; Source: National file ARCE recipients receiving ARCE for the first time in 2011. of benefit recipients, Baccalaureate level inférieur inférieur au C No + 3 years and over 16.5 Source: National file of benefit recipients, Unédic calculations. Unédic calculations. niveau BAC B niveau o Au niveau B niveau BAC+ inf niveau B niveau BAC+ niv niveau C niveau CAP/ niv études p études primaniv Total 100 1 Total niv€984 M FOR UNEMPLOYMENT BENEFIT ét ToAND TRAININGIn 2011, on average 78,200 jobseekers received Unemployment Benefit and Training every month, within the framework ofa training programme prescribed by Pôle emploi encouraging a return to work. Over the year, the Unemployment insurancescheme devoted 984 million Euros to training Unemployment benefit (AREF) recipients, which is close to the 2010 level (982million Euros). This 0.2% increase is explained by a 0.72% increase in the average amount of daily allowance, and a 0.52%reduction in the number of days for which payments are made. ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 19
  20. 20. I N D E M N I F I C A T I O N UNEMPLOYMENT INSURANCE A CONTINUOUSLy IMPROVING SYSTEM Unédic monitors compliance with regulation and the decisions of the social partners. Through its audit missions, it also helps them in their deliberations in order to improve the perfor- mance of the Unemployment insurance system.LEGAL EXPERTISE With the law of 13 February 2008, the The audits in 2011AT THE DISPOSAL public employment service was extensiv- to guarantee the proper ely remodelled. After two years during application of the regulationOF STAKEHOL- which the various stakeholders exploredDERS INVOLVED and grew accustomed to their scope of responsibility, 2011 marked the comple- The aim of an initial audit was to verify the correct operating of the incentiveIN THE EMPLOY- tion of this transition process. During measure to return to work (combina-MENT SECTOR this period, Unédic adapted all of its acti- tion of unemployment benefit and a vities in order to progress from leading a salary). By examining the conditions forOn Unédic’s extranet, a network to organising relations with the monitoring jobseekers, the measures toquestion/answer operators in charge of paying benefits promote this arrangement, the specificservice onUnemployment (Pôle emploi) and recovery (Acoss, characteristics of the IT system but alsoinsurance regulation CCMSA, CCVRP etc.). The challenge of this the control and monitoring of activitiesenables Pôle emploi adaptation consists not only in ensuring delegated to external service providers,departments and some that the guidelines and decisions of the this audit contributed to the deliberat-public sector employers Unédic Board are known and understood, ions of the social partners onand expert subscribers but also in organising, with the operators, improvements to be made.to obtain answers totheir legal questions the audits making it possible to verify the In the same vein, a second auditmore quickly. In 2011, proper application of legal and regulatory concerned the conditions for a case-by-367 questions were provisions, in addition to the successful case review of the jobseekers’ files, withasked via the extranet, operating of their internal control the aim of assessing compliance with187 by email and 360 arrangements. In 2011, Unédic conduc- the regulatory texts signed by the socialspecific requests, ted four audits within Pôle emploi’s partners and the delegations grantedformulated by departments. These audits were decided by the Unédic Board of Directors to Pôleemployers, the FrenchOmbudsman or that of by the Unédic Board and scheduled in a emploi, to rule on the individual situat-Pôle emploi, were sent multiannual plan, in coordination with ions of jobseekers. This audit resulteda written answer. the operators in question. in a project to improve the submission >>>20| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011
  21. 21. 2 111,759 JOINT MANAGEMENT CONSOLIDATES ITS ROLE Overpayments Voluntary redundancies INDIVIDUAL CASES PROCESSED 50,557 45.24% 41,779 37.38% Pursuant to the convention on Unemployment in- Total for surance, the local social partners, convened in joint the whole regional bodies (IPR), have the jurisdiction to rule on of France: 111,759 individual cases of jobseekers or employers for 100% whom an individual review is necessary. The Uné- 18,218 16.30% Other (total unemployment dic Board has also given Pôle emploi the authority without termination of the to take decisions by means of delegation. But this employment contract, Assessment of certain increased payments etc.) authority only concerns cases for which Pôle emploi entitlement conditions (1,205 – 1.08%) is in a position to take a positive decision. 3 INDICATORS Year 2010 Year 2011 Target 2014 TO MEASURE COMPENSATION First payments within deadlines ns 89% 93% Starting point to define objectives to Quality of processing benefit requests 91,7 % 90.8% nd be achieved by Pôle Emploi Share of overpayments not recovered 1,48 % 1.63 % nd FAILURE TO DECLARE A PERIOD 2009 2010 2011 OF WORK: LEADING Number of cases Amount (in thousands of Euros) MECHANISM FOR FRAUD Beyond the financial aspect, the increase in the number of Source: Pôle emploi. cases of detected fraud is all the more striking, since the number of benefit recipients has not changed in the same proportions. The failure to declare periods of work re- mains the leading mechanism for fraud (30%). The second most frequent basis for fraud is associated with fictitious jobs and false declarations by employers (15%). 11,805 1,761 18,252 2,688 18,763 3,785>>> of files to decision-making bodies. A emploi’s internal audit, a fourth audit them. In 2011, the rate of overpay- third audit checked the efficiency of focussed on the management of over- ments was 3.1% of benefits paid, and recovery by Pôle emploi of sums due by payments by Pôle emploi departments. the balance of overpayments to be employers in the event of redundancy The efficiency of the recovery of over- recovered was 1.6% of benefits paid. without actual and serious basis. The payments depends in large part on the This audit revealed contrasting situa- result expected by the Unemployment speed of bringing prelitigious recovery tions in the four audited regions, in insurance scheme came to 16 million proceedings (amicable letter and formal addition to inconsistencies in the liti- Euros in additional contributions. notice). The aim is to quickly reach an gious action which is potentially Finally, within the framework of a joint agreement with the jobseeker, in order prejudicial to the Unemployment insu- audit mission with the manager of Pôle to avoid costly litigation proceedings for rance scheme. ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 21
  22. 22. I N D E M N I F I C A T I O N NEW OBJECTIVES for POLE EMPLOI Signed in 2008, the first State/Unédic/Pôle emploi tripartite agreement focussed on the resources given to Pôle emploi as part of the merger of the Assedic and Anpe employment agencies. Three years later, a new agreement is setting the objectives to be attained for the 2012-2014 period. Signed on 19 January 2012 by the social second objective concerns the streng- partners, the State/Unédic/Pôle thening of the relationship with the emploi tripartite agreement sets the territories, by adapting Pôle emploi’s Pôle emploi objectives for the 2012- service offer to territorial realities 2014 period. It was the subject of (characteristics of the employmentTHE JOINT careful preparation throughout 2011. area, partnership opportunities etc.).LETTER SETS The tripartite agreement sets the fra- The tripartite agreement also sets asTHE AGENDA mework of reference for Pôle emploi’s action, as well as the priorities identi- the third objective the continuation of the effort to optimise Pôle emploi’sIn a joint letter fied by the State and Unédic, its joint resources, which involves streamliningaddressed on 6 May financers. Indeed, the Unemployment its organisation and assigning the2011 to the local insurance scheme contributes 64% of benefit thereof to support jobseekers.authorities, the social Pôle emploi budget (3 billion Euros inpartners set out theobjectives that they 2011). Concrete objectiveswant to see in place at The new agreement gives concretePôle emploi. Making expression to the expectations of the Among the concrete expressions of"improving jobseeker" social partners as they were expressed these objectives is that of establishingsupport a priority, the on 6 May in the joint letter relating to initial contact with the newly-text demands the the monitoring, support and redeploy- registered jobseeker within ten days,reinforcement and ment of jobseekers (see opposite). and putting in place a regular follow-personalisation ofjobseeker services, an Three main objectives are set by the up after four months. With regard toincrease in the new text. companies, it is about better targetingresources devoted to With regard to jobseekers, the new services by focussing resources ontheir support, a better- agreement seeks to strengthen the employers who are encounteringtargeted service offer to personalisation of the service offer, recruitment difficulties in industriescompanies and a closer because not all jobseekers and under pressure, or offering sustainablerelationship with theterritories. employers have the same needs. A jobs.22| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011
  23. 23. 245% OF JOBSEEKERS JOINT MANAGEMENT CONSOLIDATES ITS ROLE REGISTERED ON A GIVEN DATE ARE STILL UNEMPLOYED ONE YEAR AFTER THEIR REGISTRATION.AVERAGE RATE 100% 90% Total Under 30OF LONG-TERM 80% 30-39 40-49 70% 50 or overUNEMPLOYMENT BY AGE 60% 50%As a new indicator to understand the deve- 40%lopment of unemployment, the rate of long- 30%term unemployment makes it possible to 20%evaluate the risk of remaining registered onthe jobseeker lists for a certain length of 10%time, according to whether one is a man or 0%a woman, according to age, sector of activity, 0 6 MONTHS 12 MONTHS 18 MONTHS 24 MONTHSregion or level of basic training. This study Source: FNA. Field: registered as jobseekers, whether receiving benefits or not, from April 2008 to March 2009,was conducted for the first time in 2011 excluding appendices 8 and 10, for the whole of France.(publication January 2012).NEW INDICATORS CENTRED ON DECISION-MAKING ASSISTANCEOBJECTIVE INDICATORIncrease the number of returns to sustainable employment Exit rate to sustainable employment… particularly for long-term jobseekers Hommes Exit rate to sustainable employment for long-term 70,6 % jobseekersReduce the risks of long-term unemployment… Share of jobseekers still on the lists twelve months after their registration… particularly for young people and senior citizens Share of young people (under 25) and senior citizens (50 and over) still on the lists twelve months after their registrationAvoid jobseekers staying out of work for too long Out of work for the last 24 monthsImprove the efficiency of training programmes Exit rate to sustainable employment 6 months after any prescribed trainingThese new indicators allow for more detailed operational control and swifter adjustment of actions according to the firstresults obtained. RAPPORT D’ACTIVITÉ – ASSURANCE CHÔMAGE 2011 | 23
  24. 24. THE CSP ReplaceS THE CRP AND THE CTP The new arrangement unifies measures designed for employees affected by a redundancy procedure for economic reasons. Its implementation is entrusted to Pôle emploi. The improved job security contract (CSP) year, a payment close to the previous is a result of the will of the social part- net salary, and to organise the initiation ners and the State to create a single of the return-to-work programme arrangement to manage employees through personalised and reinforced affected by a redundancy procedure for support. The improved job security plan economic reasons. Arising from the provides for a follow-up by a specific national interprofessional agreement of referent, a skills assessment, training 31 May 2011, the CSP was applicable as courses or short periods of work (two of 1st September 2011, that is to say for weeks to six months). any employees whose redundancy pro-THE IMPROVED cedure for economic reasons was An arrangement adaptedJOB SECURITY initiated after this date. Companies to local realitiesCONTRACT TAKES must offer the CSP to their employees as soon as they envisage a redundancy Throughout this entire period, anyUP AND IMPROVES procedure for economic reasons, either employee made redundant for econo-THE EXISTING during the interview prior to redundancy, mic reasons and furnishing proof of atARRANGEMENTS or in the first letter of invitation to the least one year of service shall receive first meeting of the staff representative benefits equal to 80% of their formerWith the CRP, the bodies. The salary. They may also get unemploy-initiative to offer the arrangement concerns companies with ment benefit in the form of aarrangement to the fewer than 1,000 employees engaged in compensatory allowance upon rede-employee belonged a redundancy procedure for economic ployment covering the difference insolely to the employer.The CSP, like the CTP reasons and any companies in receiver- salary of a new job that is lower paidbefore it, can now be ship or compulsory liquidation, than the previous one, or relocation,offered directly by Pôle irrespective of their staff numbers. As moving allowances, etc.emploi. The CSP also for the employees, they have freedom of The social partners also wanted thisenables recipients who choice. If they do not opt for the CSP, arrangement to be constantly adaptedhave the option to carry they will receive unemployment benefit. to the economic reality of employmentout periods of workduring the occupational Nearly one out of two employees made areas. The CSP is controlled jointly bychangeover period, redundant for economic reasons chose the State and the social partners:which was not provided the CSP option in 2011. • nationally, within the framework of aby the CRP. The CSP’s objective is to maintain, for a political steering committee; >>>24| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011