Unédic Appeals to Reduce State Withdrawals Amid Unemployment Fund Deficit Concerns

On October 27, 2025, Unédic's social partners, including Jean-Eudes Tesson of Medef and Patricia Ferrand of CFDT, formally requested Prime Minister Sébastien Lecornu to reconsider the planned state withdrawal from the unemployment insurance fund for 2026. The state has imposed a hefty total withdrawal of 12.05 billion euros from 2023 to 2026, with 4.1 billion euros scheduled for deduction in 2026 alone, which threatens to plunge the unemployment compensation system into a significant deficit estimated at 1.3 billion euros.

The request advocates reducing the state's 2026 contribution to 2.8 billion euros to maintain system balance amid a slowing economy putting pressure on unemployment compensation finances. Tesson and Ferrand's joint letter underscores their unified stance within Unédic, highlighting the urgent need to safeguard the financial stability of unemployment insurance. Their appeal reflects concerns that the current extraction levels may jeopardize the system's ability to meet its obligations without incurring substantial deficits.

This development comes against a backdrop of economic deceleration impacting the unemployment compensation system's sustainability, requiring careful negotiation between social partners and government to ensure continued support for unemployed workers without endangering the fund's solvency.