Starting April 1, 2025, unemployment insurance will undergo significant reforms affecting older job seekers. Individuals aged 53 and 54 will see their benefit duration cut from 22.5 months to 18 months, while only those 55 and older will retain the extended benefits. This change aims to encourage seniors back into the workforce but may further disadvantage them, especially as the retirement age rises. Additionally, the calculation period for benefits will be shortened from 36 to 24 months for those under 55, potentially reducing their financial support.
Upcoming Unemployment Insurance Reform: Key Changes for Older Job Seekers
Starting April 1, 2025, a significant reform to unemployment insurance will be implemented, specifically targeting the duration of benefits for older job seekers. This initiative aims to encourage seniors to return to the workforce while also addressing the government’s objective of reducing public expenditures and reforming pension systems. However, this change may increase the vulnerability of older individuals seeking employment.
Impact on Benefits Duration for Seniors
Currently, unemployed individuals aged 53 and 54 are eligible for benefits for a duration of 22.5 months, or 685 days, which is significantly longer than the 18 months available to most job seekers. This policy was designed to offset the challenges that older workers face in securing new employment. Unfortunately, under the new reform, this extended duration will be pushed back by two years, meaning only those aged 55 and above will retain these benefits. Consequently, job seekers aged 53 and 54 will see their compensation time reduced to 18 months, resulting in a loss of 4.5 months of financial support.
This reform aligns with the broader pension overhaul, which is gradually increasing the retirement age from 62 to 64. The government’s clear aim is to expedite the reintegration of older workers into the labor market. According to Pascale Coton, vice-president of the CFTC, “Only 45% of seniors are employed, leading to a significant decrease in senior contributors to pension funds.” This emphasizes the urgent need to address the employment rates among older demographics.
Moreover, seniors are already disproportionately impacted by extended unemployment periods. Data from the Directorate for Research, Studies, and Statistics (Dares) indicates that, in the third quarter of 2023, individuals over 55 were registered as unemployed for an average of 713 days with France Travail, more than double the 312 days observed for all job seekers. This scenario complicates their job search, compounded by employer biases and the challenges associated with retraining.
In light of these changes, a safety net will be established, allowing certain job seekers to maintain their benefits until they reach the full retirement age. Specifically, beneficiaries who turn 64 and have not fulfilled their required quarters will be eligible to continue receiving benefits until they reach a maximum age of 67. However, this provision will only benefit a small fraction of older job seekers, with research from Unédic revealing that only 30% of those aged 62 and over, approximately 20,600 individuals, currently utilize this system.
Additionally, another pivotal alteration will affect the reference period for calculating benefits. Previously, unemployment benefits were based on the last 36 months of salary; starting April 1, this will be reduced to the last 24 months for job seekers under 55. This adjustment may lead to lower benefit amounts for those who have faced unstable employment or income reductions later in their careers.