The French employers' federation, Medef, is reviving a politically risky reform: the creation of a permanent contract for young people that could be terminated without cause during the first few years. Presented as a response to unemployment among first-time job seekers, the proposal was formulated during a meeting between employers' organizations and unions, according to documents seen by AFP, and immediately evokes the specter of the highly controversial "first employment contract" (CPE), abandoned in 2006 after massive public mobilization.
In its reports on "youth employment" and the "production model," the organization headed by Patrick Martin proposes drawing inspiration from the Italian model known as the "progressive rights contract," implemented in 2016. The idea would be to transpose this system to France through a permanent contract with easier termination at the outset, and with compensation increasing based on seniority upon contract termination. The Medef also mentions the possibility of requiring employers to provide specific training to support these new hires.
Another proposed solution is extending the probationary period, primarily targeting young people with few or no qualifications. Employers emphasize a clear objective: to reduce what they call the "fear of hiring," which they believe hinders young people's access to the job market, particularly those with lower qualifications.
The taboo surrounding the minimum wage has been revived by employers.
But another issue could ignite the controversy: the Medef (French Business Confederation) is also calling for a review of the minimum wage (SMIC), which it considers sometimes a deterrent to hiring new employees. The organization proposes "adapting" the wage level for a targeted group and for a limited period, possibly through collective bargaining. In short, a differentiated minimum wage for young people, under the guise of aligning wages with skills.
These proposals come in a context where the issue of NEET youth—not in employment, education, or training—remains a sensitive social marker. The Medef (French Business Confederation) estimates this category at 12,3% of 15-29 year olds in France in 2023 and states its intention to focus its measures on young people furthest from employment. Other suggestions include eliminating waiting periods between fixed-term contracts, extending their legal duration, and making adjustments to part-time work.
Officially, the Medef (French employers' federation) maintains that these are merely "proposals to stimulate debate." But by reviving a mechanism similar to the CPE (First Employment Contract), employers are touching on a historical breaking point: that of a labor market where young people increasingly enter the workforce at the price of organized precarity, while the state and social partners struggle to decide between economic flexibility and social protection.
