Initially set up to support the employment of young people under the age of 26, government aid for new hires was due to end on January 31, 2021. However, in view of the disastrous effects of the ongoing health and economic crisis, the government has decided to extend the scheme by several months. Here are the details.
Helping young people enter the world of work
To support the young people most affected by the consequences of the health crisis, the government launched the "1 young person, 1 solution" plan on July 23:
- hiring incentives,
- training courses,
- or financial aid for young people in difficulty.
More concretely, the "1 young person 1 solution" plan is divided into three main areas.
1. Helping young people enter the job market
To encourage the hiring of under-26s, a number of grants are available to companies. For example, a 4,000-euro compensation allowance is paid for any young person recruited between August 1, 2020 and March 31, 2021.
A one-off grant of 5,000 euros is also available for those recruiting a student under 18 (8,000 euros for those over 18).
2. Guiding and training young people in the sectors of the future
100,000 new qualifying or pre-qualifying training courses will be offered to young people with no qualifications or who are failing at school.
3. Tailor-made integration paths
The third axis aims to support young people who are far from employment by suggesting tailor-made integration paths.
In all, over 6 billion euros will be mobilized under the "1 young person, 1 solution" plan to help people under 26 enter the world of work.
In an interview, the French Minister of Labor announced that the scheme would be extended beyond January. The deadline has not yet been set.
500,000 apprenticeship contracts signed by 2020
The measures put in place by the government seem to be bearing fruit. Indeed, despite the health crisis, over 500,000 apprenticeship contracts were signed in companies, 140,000 more than in 2019. Apprenticeships held steady in the construction, industry and craft sectors.
In addition, while the unemployment rate has risen among the under-25s, more than a million of them were hired on fixed-term contracts of at least 3 months or on open-ended contracts between the end of August and November 2020.
The Ministry of Labor reports that 220,000 bonuses have been requested by employers following the hiring of a young person. Aid to encourage the recruitment of work-study students has also been a great success.
Last but not least, a number of business leaders have joined forces to offer 100,000 job vacancies on the 1jeune1solution website over the next few weeks.