Reform of the Unemployment Insurance System in France: A Focus on Active Labour Market Policy

Abstract

The French reform of unemployment insurance, initiated in 2017, is ongoing as of 2025. Of the many changes made to the unemployment insurance system, I focus on the measures aimed at transitioning jobseekers into work. A subtle shift has taken place in the activation policy. The policy since its enactment in November 2019 has imposed stricter regulations on unemployment insurance and increased controls on jobseekers, while also expanding in scope and target population in 2023. Since then, the France Employment Agency (France Travail)—formerly the National Center for Employment (Pôle Emploi)—has managed not only general jobseekers but also youth lacking job-ready competencies and recipients of Earned Income Supplement, helping these groups to participate in social activities through engagement contracts (contrat d’engagement).