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War in the Middle East: Government announces partial unemployment coverage, all sectors eligible

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To respond to the economic consequences of the war in the Middle East, Minister of Labor Jean-Pierre Farandou announced on Monday that the state will cover the partial unemployment measures, amounting to around 70 million euros.

Long-term partial activity measures (APLD), allowing companies to reduce the activity of their employees while keeping them employed, were implemented during the COVID-19 crisis starting in 2020 and at the beginning of the war in Ukraine in 2022. However, new similar measures could no longer be put in place since the beginning of 2023.

On Franceinfo, the minister stated, “to implement partial unemployment measures to support companies with a decrease in activity, there are very few moreover, that is to say at the moment, activity is not doing too badly.”

“All companies are eligible”

“Partial unemployment can affect all companies facing a sudden drop in activity directly linked to the crisis” and “we are not very sure that once the crisis is over, the company will start up again,” explained Jean-Pierre Farandou.

“All companies are eligible” but “we will pay even more attention to companies suffering because of 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 transportation.

“The effort made by the state in terms of partial unemployment, which is also paid by the Ministry of Labor, is added to the effort made to reduce the fuel bill in certain sectors that are particularly fuel-consuming,” Jean-Pierre Farandou explained.

This new budget line “around 70 million euros, we will commit to it and we will see how it goes as we progress throughout the year.” However, “whatever happens, we will try to maintain the deficit reduction,” he assured, adding that “there is no magic money” and that “the government is not sitting on a windfall.”

Regarding the revaluation of travel expenses for self-employed nurses, “we will see what is possible,” he also indicated.