To address the economic consequences of the war in the Middle East, Labor Minister Jean-Pierre Farandou announced on Monday that the state would cover partial unemployment measures, totaling about 70 million euros.
Long-term partial activity measures (APLD), allowing companies to reduce the activity of their employees while keeping them employed, had been implemented during the Covid-19 crisis starting in 2020 and then at the beginning of the war in Ukraine in 2022, but new similar schemes could no longer be implemented since early 2023.
On Franceinfo, the minister declared, “to put in place partial unemployment measures to relieve companies experiencing a decrease in activity, there are very few by the way, meaning that for the moment, the activity is not holding up too badly.”
“All companies are eligible”
“Partial unemployment can affect all companies facing a sudden decrease in activity directly linked to the crisis,” explained Jean-Pierre Farandou, “and companies we are less confident will bounce back once the crisis is over.”
“All companies are eligible,” but “we will pay more attention to companies suffering due to what is happening in Iran,” the minister indicated.
The government also announced a plan of over 70 million euros on Friday, targeted and limited to the month of April, for sectors most affected by the surge in fuel prices: fishing, agriculture, or transport.
“The effort made by the state in terms of partial unemployment, which is actually paid by the Ministry of Labor, adds to the effort being made to reduce the fuel bill in certain sectors that are particularly fuel-intensive,” clarified Jean-Pierre Farandou.
This new budget line “around 70 million euros, we will commit to it and see how it goes as we progress throughout the year.” But “whatever happens, we will try to hold the deficit reduction,” he assured, adding that “there is no magic money” and that “the government is not sitting on a pile of money.”
Regarding the increase in travel expenses for self-employed nurses, “we will see what is possible,” he also stated.
