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Hollande’s €2bn plan for jobs
Firms offered €2,000 job bonus as major training schemes expanded – along with possible change in 35-hour week
PRESIDENT Hollande has revealed a €2billion list of measures to tackle continuing high unemployment and accelerate growth in the economy – and also boost his electoral hopes for next year.
Saying the country was in a “state of emergency” with unemployment stuck above 10%, his major measures include a €2,000 bonus for companies taking on new staff, 500,000 vocational training places and a boost for apprenticeships.
Called the prime à l'embauche, the €2,000 bonus will be available to companies of fewer than 250 staff who hire a young or jobless person on a CDI or CDD for six months at a wage of up to 1.3 times the Smic minimum wage.
The number of training programmes is to be doubled to one million at a cost of €1bn with Mr Hollande calling on support from the regions to identify employment needs in the “industries of the future” – digital, energy, personal help, aeronautics and construction.
In addition, Mr Hollande implied changes to the 35-hour week when he said that companies and staff could negotiate changes in the working day with possible agreements on overtime payments or the amount of overtime worked. At present overtime is paid at 25% extra but could be negotiated down.
Face à un chômage trop élevé, nous devons être capables de réformer, de porter un modèle économique et social exigeant, de croire au progrès— François Hollande (@fhollande) January 18, 2016
He said the plan would be funded by government spending cuts with no extra taxes or charges being imposed.
Unemployment has been rising since 2008 and President Hollande has seen it increase by 650,000 to 3.57million, with companies still reluctant to take on staff despite the socialist government easing employers’ social charges and giving extra incentives to employ young people.
Mr Hollande is betting on the return of growth – the economy grew by 1% last year – to give companies more confidence.