Professionalization contracts: towards an end to government aid for hiring?
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Is this soon the end of a helping hand from the State? The Ministry of Labor has sent the social partners a draft decree which aims to eliminate, as of May 1, hiring assistance for work-study students on professionalization contracts, according to this document consulted Monday by AFP. In July 2020, during the health crisisthe government had put in place aid to support youth employment with a bonus for hiring apprentices or employees under professionalization contracts under 30 years old.
This aid had been extended several times and had been set since January 1, 2023 at 6,000 euros for both a minor and an adult. The draft decree, initially revealed by the AEF agency, indicates that it is a question of “removing, for contracts concluded from May 1, 2024, aid to employers of employees on professionalization contracts”. This study contract combines practical training in a work situation and theoretical training in a training organization or a company.
Budget cuts
From May 1, 2024 and until the end of the year, the one-off aid of 6,000 euros will therefore be reserved for the recruitment of apprentices in initial training. In its draft decree, the government emphasizes that “in view of growth forecasts and the increase in the public deficit (5.5% of GDP), measures to reduce the state budget have been decided on certain measures relating in particular to the field of employment and professional training.
By acting last February 10 billion euros in budget cuts, the government had in fact planned 1.1 billion canceled credits for the “work and employment” mission. The elimination of hiring aid for professionalization contracts should contribute to this. “Attacking work-study training is not a good idea,” judged the Confederation of SMEs.
“If the need to reduce public spending is not debated, it is appropriate to carefully target those whose usefulness is not proven,” underlines the CMPE in a press release, calling on “the government to carefully assess the issue of the removal” of this aid. According to the latest data from Dares, at the end of January 2024, there were 90,700 people on professionalization contracts. In 2023, 116,000 professionalization contracts had started.
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