Unemployment benefits will not be increased on July 1st.

Job seekers will not see their benefits increase on July 1st. Unédic announced on Tuesday, June 30th, that the current amount of benefits will be maintained, due to a lack of a sufficient majority in the board vote. Unions and employers' organizations were tied, blocking any increase despite rising inflation. This situation had not occurred since 2016, when benefits also remained unchanged.

A vote blocked for budgetary reasons

Employers' organizations justified their opposition by citing the deteriorating state of public finances. Unédic, the unemployment insurance fund, forecasts a deficit of €2,1 billion for 2026 according to its latest financial projections. Faced with these figures, employers argued that an increase in benefits was not feasible, despite the inflationary pressure eroding the purchasing power of the unemployed. The unions were unable to sway the vote in favor of an increase.

This decision marks a turning point after a decade of regular adjustments to benefits. Unemployment benefits will therefore remain frozen at least until 2027, the date of the next possible review. The joint body will have to decide again next year on a possible increase, in a budgetary context that remains tight for unemployment insurance.