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Home » Standard of living: unemployment insurance reform has impoverished job seekers
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Standard of living: unemployment insurance reform has impoverished job seekers

By News Room8 July 20252 Mins Read
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Standard of living: unemployment insurance reform has impoverished job seekers
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The verdict fell: poverty increases in France and inequalities with the richest are widening. This is the conclusion taken from the annual note “standard of living and poverty in 2023” of INSEE, and published on Monday, July 7. Witnesses of this impoverishment, the proportion of French people living below the poverty line increased between 2022 and 2023, passing From 14.4% to 15.4% of the population (a higher since 1996), or 9.8 million people. To achieve this observation, INSEE determines the poverty line, which corresponds to 60% of median income. In other words, in 2023, people winning people were considered under the poverty line less than 1,288 euros per month (or 1,932 euros monthly for a couple).

But within this growing share of households, what category of activity is the most exposed to the risk of poverty? According to INSEE, it is the inactive (including students) and the unemployed who are most represented among poor people, with poverty rates much higher than average, respectively 37.3% and 36.1% (more than twice the national average). Conversely, employees (6.6% poverty rate) and retired (11.1%) are doing the best. In the middle, the self -employed display the poverty rate (19.2%) closest to the average.

The unemployed who are pushed to make concessions on their wages

Between 2022 and 2023, no upheaval concerning the socio -professional categories most exposed to poverty. However, INSEE notes the significant increase in the poverty rate among the unemployed (+0.8 point), which it partially attributes to the unemployment insurance reform, entered into force on February 1, 2023, and which has “Reduces the duration of compensation by 25% for new entrants to unemployment insurance”recalls the National Institute of Statistics. A reduction in the compensation period which led in particular job seekers to accept downward wages, already noted oneédic at the end of 2023, thus starting their standard of living.

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