Review on public expenditure on employment support and jobseeker assistance programs
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Érik Rance, Isabelle Menant (Igas), Gilles Lara-Adelaïde, Aude Charbonnier, Marie de Sarnez, Joé Vincent-Galtié (IGF)
The mission reviewed around fifteen employment support and assistance programs, including operating and intervention expenditures of the public employment service.
This represents a budgetary scope of €12.7 billion, of which €7.8 billion comes from public budget allocations.
After analyzing three cost-saving scenarios ranging from €0.39 billion to €1.03 billion, the mission recommends a “central” scenario capable of generating €0.61 billion in savings as early as 2025 (€1.8 billion over the 2025–2027 period). This scenario is primarily based on:
Scaling back the initial ambitions outlined in the Public Finance Programming Law (LPFP) regarding programs targeting individuals furthest from the labor market, to make them more achievable;
Tightening the targeting of programs aimed at young people;
Capping the creation of “emplois francs” (subsidized jobs in disadvantaged areas) at 2024 levels and converting the scheme into a one-time hiring incentive;
Reducing the budget for outsourced services by France Travail (the French public employment agency).
This central scenario outlines three main areas of savings for 2025 :
€226 million in savings on work integration through economic activity;
€167 million on the public employment service and youth employment support;
Other smaller measures, generating up to €50 million in savings.
Additionally, the mission proposes cross-cutting measures that could reduce the administrative cost to the State by approximately €0.14 billion per year. These include increasing the share co-financed by local authorities for local missions (youth employment support centers), and introducing financial accountability for decentralized levels of government, based on a flexible regional budget envelope.
Some of these measures would require legislative action, but their overall impact on employment is expected to be limited—fewer than 1,000 job losses compared to LPFP projections.
Lastly, adjustment mechanisms could be introduced to align resources with changing economic conditions:
In the medium term, by varying the intensity of support based on how close individuals are to employment and the tightness of the labor market;
And in the longer term, by adjusting staffing levels in line with structural trends in the unemployment rate.