Extension of the partial unemployment scheme in France

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French Prime Minister Jean Castex announced the extension yesterday (August 26), specifying that it would be available for up to two years for companies covered by an agreement making them eligible for the long-term partial activity (APLD).Companies that are not covered, but which have been particularly affected by the Covid-19 crisis, will have access to it until the end of the year, the Prime Minister confirmed. At this point, the provision will be reassessed.

He said these businesses could include those in: “Sectors such as sports, tourism and events, which will retain access until the end of the year, even without coverage.

The APLD program aims to save jobs by avoiding economic layoffs due to the Covid-19 crisis. It allows companies to reduce employee hours and wages by up to 40%. The state then steps in to make up the difference, ensuring that employees always receive a full salary each month.

In July, there were around 2.4 million partial unemployment workers in France, two million less than in June according to Dares, the statistical service of the Ministry of Labor.

In June, 4.5 million people declared short-time work, against 7.9 million in May, 8.8 million in April and 7.2 million in March.

In July, 120,000 people in France were on partial unemployment either because they were in a vulnerable situation or because they were taking care of children, against 720,000 in June.

Despite the overall reduction in the number of applicants, the numbers in July were particularly high in construction, trade, transport and warehousing, hospitality, science and technology, according to Dares.

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