Economic measures, health measures, aid … the “whatever the cost” of the government is very expensive for unemployment insurance. Admittedly, this cost is borne by the executive, but the figures unveiled on February 24, 2021 by Eric Le Jaouen, president of Unédic, give a slightly more precise idea of the cost of the crisis. It’s simple: the debt will double.
Before the crisis: a rather balanced situation
If the Unemployment Insurance system is riddled with debt, the situation was starting to improve. The forecasts unveiled in early 2020, before the pandemic and the measures taken as a result, suggested that, somehow, Unédic was doing.
At the end of 2020, the deficit was, of course, to widen further by 900 million euros … but in 2021 and 2022 the plan should be profitable, and not only a little: 2.3 billion in 2021, 4.2 billion in 2022. A first since 2008 and, above all, a profit which would have had the effect of starting to reduce Unédic’s debt, which was to fall to 32 billion euros. A big hole… but without comparison with the one who is now waiting for it.
17 billion euros in deficit in 2020 … and more than 16 billion more in the following two years
The new Unédic forecasts, unveiled on February 24, 2021, are quite simply the opposite of those a year earlier. From 900 million, the deficit in 2020 is now estimated at 17.4 billion, almost 20 times more. The economic measures have, unsurprisingly, weighed heavily on the accounts of Unemployment Insurance.
As for the benefits for 2021 and 2022… Unédic can forget them. From now on, the regime expects a deficit of 10 billion in 2021 and 6.4 billion in 2022. That is a total of nearly 32 billion euros between 2020 and 2022 … compared to the nearly 6 billion euros in profits over the same period expected in February 2020.
Debt, for its part, will explode: it simply doubles by 2022. Exit the 32 billion euros at the end of 2022 and hello 71 billion euros in debt.