2011 was a year full of contrasts for the Unemployment insurance scheme due to changes in the economic situation. The good performance of the first half of the year made it possible to restore financial equilibrium due to the strong jobs market and the stabilisation of unemployment. But this trend did not last beyond summer. 2011 was also a valuable and constructive year with the agreement of March 2011 giving rise to the new convention on Unemployment insurance, an agreement in favour of youth employment, the decision by the board of directors to increase the benefits paid to jobseekers, the creation of the improved job security contract (CSP), etc. The social partners also set out their expectations with regard to Pôle emploi, primarily to ensure that jobseekers and companies benefit from a service adapted to their situation.

1. A N N U A L R E P O R T
UNEMPLOYMENT
INSURANCE
2 11

2. EDITORIAL 3
KEY EVENTS 2011 4
1. UNEDIC KEEPS PACE WITH CHANGES IN THE ECONOMIC SITUATION 6
2011: the stifled recovery 8
2. JOINT MANAGEMENT CONSOLIDATES ITS ROLE 10
Unemployment insurance benefit 12
Transfer of recovery of employers’ contributions to Acoss 14
Improved arrangements for jobseekers 16
The return-to-work support measures are maintained 18
Unemployment insurance: a continuously improving system 20
New objectives for Pôle emploi (job centre) 22
The CSP replaces the CRP and the CTP 24
3. UNEDIC PLAYS AN ACTIVE ROLE IN THE EVOLUTION
OF THE PUBLIC EMPLOYMENT SERVICE 26
Responsibility, autonomy and transparency of joint management 28
GLOSSAry 30
2| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011

3. EDITORIAL
A CONSTRUCTIVE YEAR for
JOINT MANAGEMENT OF THE
UNEMPLOYMENT INSURANCE SCHEME
2011 was a year full of contrasts for the Unemployment insurance scheme due to changes in the eco-
nomic situation. The good performance of the first half of the year made it possible to restore finan-
cial equilibrium due to the strong jobs market and the stabilisation of unemployment. But this trend
did not last beyond summer. 2011 was also a valuable and constructive year with the agreement of
March 2011 giving rise to the new convention on Unemployment insurance, an agreement in favour
of youth employment, the decision by the board of directors to increase the benefits paid to jobseek-
ers, the creation of the improved job security contract (CSP), etc. The social partners also set out their
expectations with regard to Pôle emploi, primarily to ensure that jobseekers and companies benefit
from a service adapted to their situation.
Unédic set out to ensure that all of these decisions and guidelines were implemented and guar-
antee the quality of the service provided by the Unemployment insurance system through Pôle
emploi, the Social Security Contribution Collection Agencies (Urssaf) and other recovery operators.
This resulted, in particular, in the successful negotiation of the new tripartite agreement which binds
Unédic, the State and Pôle emploi, in Acoss assuming responsibility for the recovery of contributions,
which until then had been handled by Pôle emploi. All these events have one thing in common: they
highlight the ability of the social partners and the Unemployment insurance scheme to adapt to our
country’s social and economic changes.
At the heart of the Unemployment insurance scheme, Unédic continues to act to ensure its effic-
iency. It prescribes the unemployment benefit rules decided by the social partners, supervises their
implementation, produces the studies and forecasts required to stimulate joint consideration and
continues to develop the Unemployment insurance system. Unédic also finances it under the best
possible conditions. It conducts itself in a completely transparent manner and according to the rules
of the agreement on joint management. Unédic intends to be open to its environment and to listen
to its public and those who are tackling unemployment, dedicated to the social partners.
As President of Unédic since January 2012, I intend to consolidate the achievements of recent years
in order to strengthen the role of the social partners as part of a rigorous approach to joint manage-
ment. I am keen to review and give clear expression to the arrangements that it creates, while
continuing to play an active role in changes in the labour market.
Unédic will continue working to enhance the performance of the Unemployment insurance scheme,
for the benefit of employees, companies and jobseekers, by ensuring that the operators apply the
rules and provisions chosen by the social partners in close collaboration with them.
Jean-François Pilliard
President of Unédic
ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 3

4. KEY EVENTS
TRANSFER NATIONAL BOND ISSUE JOINT LETTER START OF THE CREATION
OF THE RECOVERY INTERPROFESSIONAL TO PUBLIC RENEGOTIATION OF OF THE IMPROVED
OF CONTRIBUTIONS AGREEMENT ON THE AUTHORITIES THE TRIPARTITE JOB SECURITY
TO ACOSS UNEMPLOYMENT AGREEMENT BETWEEN CONTRACT (CSP)
INSURANCE SCHEME UNÉDIC, THE STATE
AND PÔLE EMPLOI
1st 25 31 6 11 31
January March March May May May
2011 2011 2011 2011 2011 2011
The recovery Formalised by a new Unédic raises Relating to the The negotiation The national
of Unemployment convention on 1.5 billion Euros monitoring, support enabled Unédic and interprofessional
insurance Unemployment on the bond and redeployment of the State (joint agreement on the
contributions insurance, this market, in order jobseekers, this joint financers of Pôle CSP brings about
from 1.6 million agreement: to finance the letter serves as a emploi) to set out the merger
employers is now - takes into account Unemployment framework to the the guidelines of between two
the responsibility pension reform; insurance scheme. renegotiation of the the operator’s existing jobseeker
of the Urssaf - improves the Unédic/State/Pôle service offer for the support
agencies. conditions for emploi tripartite next three years. arrangements, the
taking agreement. CRP and the CTP.
responsibility for
jobseekers
receiving a
disability pension;
- abolishes the
specific rules for
taking
responsibility for
KGEREY
seasonal
unemployment;
- encompasses the
conditions for a
decrease in the
Unemployment
insurance
contribution rate.
FI U S
4| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011
2011

5. ASSURANCE
CHOMAGE
2 11
ENTRY INTO FORCE 1.5% INCREASE ENTRY INTO FORCE THE UNÉDIC BOARD SIGNATURE OF THE
OF THE NEW IN UNEMPLOYMENT OF THE IMPROVED JOB VALIDATES THE NEW STATE/ UNÉDIC/PÔLE
CONVENTION ON BENEFITS SECURITY CONTRACT TRIPARTITE EMPLOI TRIPARTITE
UNEMPLOYMENT (CSP) AGREEMENT AGREEMENT
INSURANCE
1st 1st 1st 28 11
June July September November January
2011 2011 2011 2011 2012
Signed by the Employers’ This increase is The Improved job The Unédic Board Result of a
Associations, Medef, CGPME decided by the social security contract gives a positive negotiation
and UPA, as well as by the partners who sit on (CSP) is the result opinion on the draft throughout 2011,
Trade Unions CFDT, CFE- the Unédic Board of the merger of tripartite agreement the agreement is
CGC, CFTC and CGT-FO, the of Directors. existing between the State, signed on 11
new convention will apply arrangements: Unédic and Pôle January 2012 under
until 31 December 2013 the Personal emploi for the 2012- the aegis of Xavier
with regard to benefits. redeployment 2014 period. The Bertrand, Labour
The rule on the rate of agreement (CRP) and text sets out the Minister.
contribution will continue to the Occupation priorities for Pôle
be in effect until 31 transition contract emploi and defines
December 2016. (CTP). its financing
arrangement.
16.6 MILLION
EMPLOYEES AFFILIATED TO THE
1.6 MILLION
UNEMPLOYMENT INSURANCE scheme AFFILIATED COMPANIES
€31.7 BN AMOUNT OF RECOVERED CONTRIBUTIONS
2.2 MILLION €26.3 bn
AMOUNT OF BENEFITS
JOBSEEKERS RECEIVING
UNEMPLOYMENT INSURANCE PAID IN 2011
ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 5

6. UnEdic PACE
KEEPS

7. 1
WITH CHANGES
IN THE ECONOMIC
SITUATION
As of the second quarter, 2011 resulted
in a negative balance between
job creation and loss. For the
Unemployment insurance scheme, the
increase in the number of unemployed
people receiving benefits resulted in a
deficit situation. At the same time,
the Unédic Board adapted its financial
strategy for the Unemployment
insurance scheme to market operations,
in order to ensure the continuity of
benefit payments.
ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 7

8. ECONOMIC SITUATION
2011,THE STIFLED
RECOVERY
After a dynamic first quarter in terms of job creation, activity
slowed down and unemployment began to creep back up in
the second half of the year.
The economic situation in 2011 remai- year, it increased by 2.9 billion Euros.
ned particularly unstable. After a After a downward trend in 2010,
progressive consolidation of growth in the number of unemployed people
2010 and a dynamic first quarter 2011, increased in 2011 by 147,000 people in
economic activity in France remained category A jobseekers, while categories
unchanged. The continuation and B and C registered 75,000 additional
deepening of the sovereign debt crisis jobseekers receiving benefits.
AGGREGATE DEBT in the euro zone, in addition to the At the end of December 2011, the
OF 14.1 BILLION budgetary consolidation measures Unemployment insurance scheme paid
weighed heavy on growth from the out to 2.2 million people, i.e. 87,000
EUROS AT THE second quarter. While during the first more than in the same period the pre-
END OF 2012 half of the year, 102,000 jobs were vious year.
May 2012 estimate created, the slow-down in activity
According to the
nevertheless resulted in the loss of Change in behaviour
updated forecast for the
23,000 jobs in the second half of the
financial equilibrium of year. 2011 was also characterised by Unédic also recorded a change in job-
the Unemployment the decline in temporary employment seekers’ behaviour. Thus, the practice
insurance scheme for and an expected increase in the of reduced activity continued to
2012, the labour market working population. increase in 2011 (10.5% compared to
situation will contribute Until the middle of the year, Unédic’s 2010), bringing the number of people in
to an increase in the
finances benefited from the dynamic reduced activity who are entitled to
scheme’s expenditure
and a decrease in nature of the wage bill. At the end of benefits to 1.1 million, whether recei-
revenue. Unédic is the first half of the year, there was a ving benefits or not.
expecting a negative brief return to a balance between There are also more jobseekers setting
"revenue/expenditure" expenditure and revenue. However, the up their own business. In 2011, 75,000
balance that would worsening economic situation in the business start-up candidates were sup-
increase the scheme’s second half of the year resulted in ported by the Unemployment
deficit by 3 billion Euros.
renewed disequilibrium. At the end of insurance scheme within the framework
At the end of the year,
the Unemployment 2011, the Unemployment insurance of the Assistance for the takeover or
insurance debt would net debt was 11.5 billion Euros, versus creation of a company (ARCE) arrange-
reach 14.1 billion Euros. 8.6 billion at the end of 2010. Over the ment.
8| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011

9. 1
+ 87,000
JOBSEEKERS RECEIVING
BENEFITS IN 2011 COMPARED
UNEDIC KEEPS PACE WITH CHANGES IN THE ECONOMIC SITUATION
TO 2010.
OVER THE YEAR,
THE TOTAL NUMBER
OF JOBSEEKERS (CATEGORIES
A, B AND C) INCREASED
BY 222,000.
WAGE BILL AND UNEMPLOYMENT TREND IN JOBSEEKERS RECEIVING
INSURANCE CONTRIBUTIONS (year-on-year in %) UNEMPLOYMENT INSURANCE (level in thousands)
Year-on-year % Workforce in millions
6.0 3.5
Forecast
5.0
3.0
4.0
Year-on-year %
3.0 6.0 2.5
2.0 Forecast
5.0
2.0
1.0 4.0
0.0 3.0 1.5
-1.0 2.0
-2.0 1.0
1.0
-3.0 0.0 Jobseekers in category DEFM A
0.5
-4.0 -1.0 Unemployed people receiving unemployment insurance
Wage bill
-5.0 -2.0 0.0
Contributions 2007 2008 2009 2010 2011
-6.0 -3.0
2007 2008 2009 2010 2011 2012 Source: Pôle emploi, Unédic, Unédic forecasts. Fields: unemployed people
-4.0 receiving unemployment insurance, excluding CRP, CSP, CTP, training,
Source: Pôle emploi, Unédic, Unédic Forecasts Wage bill
seasonally adjusted data for the whole of France.
-5.0
Contributions
-6.0
2007 2008 2009 2010 2011 2012
8 UNEDIC KEEPS PACE
Billions of Euros Balance = Revenue - expenditure
CHANGE IN CASH BALANCE
Net banking indebtedness
In 2012, the debt level would reach - 14.06 billion Euros
Forecast
4
0
-4 WITH THE CHANGE Billions of Euros Balance = Revenue - expenditure Net banking indebtedness
IN FINANCIAL
-8
8
-12 Forecast
4
-16
0
-20
2007 2008 2009 2010 -4
2011 2012
MARKETS
-8
-12
-16
-20
2007 2008 2009 2010 2011 2012
Source and forecasts: Unédic
2011 was characterised by the instability of the financial markets and by their preference for short-term investments. In order to
carry out its missions, Unédic adapted its financial strategy. Half (51%) of Unédic’s debt (11.5 billion Euros at the end of 2011) was
financed by bond issues, and the remainder (49%) by commercial papers. By issuing the latter, it was possible to supplement the
financing under very satisfactory rate conditions. However, this strategy did not protect the Unemployment insurance scheme from
a possible interest rate hike. This is why for 2012 Unédic set the objective of progressively re-balancing its sources of financing by
once again prioritising mid-term and long-term borrowing.
ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 9

10. JOINT MANAG

11. 2
EMENT
CONSOLIDATES
ITS ROLE
Transfer to Acoss of the recovery of Unemployment
insurance contributions, negotiation of the tripartite
agreement between the State, Unédic and Pôle emploi:
Unédic guarantees the social partners managerial and
decision-making autonomy.
ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 11

12. UNEMPLOYMENT INSURANCE
BENEFITS
Mandatory insurance
against the risk
of job loss
To encourage
a swift return
to work
Private sector employees
and employers contribute
to the Unemployment
insurance scheme together
Paid by Pôle emploi
€1.1
billion
in return-
to-work
assistance
€29 billion
in Unemployment
insurance benefits
• Registration of jobseekers
• Calculation and payment of their benefits
• Support towards returning to work
• Canvassing of the labour market
• Assistance to companies for recruitment
• Job search monitoring
12| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011

13. 2
JOINT MANAGEMENT CONSOLIDATES ITS ROLE
Deducted
by social security
organisations
Since 1st January 2011, Acoss (Central Agency
of Social Security Organisations), CCMSA, CCVRP
and the central funds of Monaco and of St-Pierre & Miquelon
have centralised recovery for greater simplicity for
companies
€31.7 billion
in
contributions
Managed jointly
Social
partners
€3
billion
for Pôle
emploi budget
• Finances Pôle emploi • Negotiate and establish
up to 64% of its budget unemployment benefit
• Implements the convention • Determine the rate of contribution
on unemployment insurance of employers and employees to
the Unemployment insurance scheme
ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 13

14. R E V E N U E
SUCCESSFUL
TRANSFER
OF THE RECOVERY
OF CONTRIBUTIONS
The transfer to Acoss of the recovery of employers and
employees’ contributions to the Unemployment insurance
scheme came into force, as expected, on 1st January.
The law of 13 February 2008 set 1st order to maintain the managerial auto-
January 2012 as the deadline for the nomy of the social partners.
transfer of the mission to recover In partnership with the recovery ope-
Unemployment insurance contributions rators, indicators for controlling and
and Wage guarantee insurance (AGS) monitoring activity were set out and
contributions to the Urssaf agencies. implemented, in order to enable Unédic
Committed since 2009, this second to fully play its role to monitor, forecast
stage of the Public employment service and engage in the financial manage-
reform finished a year before the dead- ment of the Unemployment insurance
4.5 MILLION line set by the legislator. This operation
is the result of close collaboration
scheme.
EMAILS between the three institutions involved: A major challenge
During the second half Acoss (Central Agency of Social Security
of 2010, an extensive Organisations including the Urssaf The recovery of Unemployment insur-
information campaign agencies), Pôle emploi and Unédic. On a ance contributions by Acoss also
for companies preceded national scale, the transfer of the reco- constituted a major challenge for the
the actual transfer of very mission involves 1.6 million scheme: the certification of its accounts
the recovery mission on establishments. in a new context. This was a challenge
1st January 2011. 4.5
The aim of the reform is to simplify the because since 1st January 2011,
million emails and 5.5
million letters were sent formalities of employers, by allowing for Unédic’s revenue had been recovered by
to companies, a single declaration and a single pay- an organisation with public establish-
accountancy firms and ment to just one organisation, their ment status, and as such was subject to
payroll software Urssaf agency, and this shall apply to all different accounting standards. The
publishers. The result social contributions, Unemployment certification of Unemployment insu-
lived up to expectations.
insurance contributions and AGS rance accounts required close
Fewer than 3
contributors out of 100
contributions. collaboration between Unédic’s certi-
filed incomplete returns During 2011, Unédic’s role has primarily fying auditors and the French
with the Urssaf been to ensure that deployment was Accounting Court, the certifying body for
agencies. carried out under good conditions, in Social Security organisations. >>>
14| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011

15. THE OTHER OPERATORS
2
€25.8 BN
INCLUDING PÔLE
JOINT MANAGEMENT CONSOLIDATES ITS ROLE
EMPLOI, CCMSA AND
ACOSS FOR SPECIFIC
ARRANGEMENTS,
RECOVERED €5.9 BN
IN 2011.
IN CONTRIBUTIONS RECOVERED BY ACOSS
A TWO-YEAR REFORM OF THE PUBLIC EMPLOYMENT SERVICE
19
Deccember 1st January July September 1st january
2008 2010 2010 2010 2011
CREATION OF PÔLE LAUNCH OF THE
EMPLOI AND INFORMATION EFFECTIVE TRANSFER
ASSUMPTION OF CAMPAIGN FOR OF RECOVERY OF
RESPONSIBILITY FOR COMPANIES UNEMPLOYMENT
RECOVERY INSURANCE
1ST PILOT PHASE 2ND PILOT PHASE CONTRIBUTIONS FROM
OF THE TRANSFER OF OF THE TRANSFER PÔLE EMPLOI TO ACoss
RECOVERY IN ÎLE-DE- OF RECOVERY ACROSS
FRANCE (530 THE DÉPARTEMENT
ESTABLISHMENTS) OF THE RHÔNE (74,000
ESTABLISHMENTS)
BETTER DETECTION OF UNEMPLOYMENT
INSURANCE CONTRIBUTIONS FRAUD
By implementing new control mechanisms, the transfer of recovery also operates to improve the overall fraud detection
capacity. In 2011, frauds detected by Acoss, essentially cases of undeclared work, could represent 18.8 million Euros. Social
Security’s recovery branch planned several actions in this regard in 2012. Besides prevention and information actions,
Acoss is working on developing information exchanges with the tax arena and the other social protection organisations.
Unédic intervenes by establishing control operations and by ensuring the coordination of fraud prevention actions between
contribution and indemnification.
>>> The general working arrangements bet- ramme made it possible to define and monitoring arrangement, thereby gua-
ween the two certification authorities optimise the specific procedures for the ranteeing the full managerial autonomy
have been regulated by decree since 2010. exchange of, access to and processing of of the social partners in a sustainable
Throughout 2011, a joint work prog- accounting information, as well as a joint manner.
ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 15

16. I N D E M N I F I C A T I O N
IMPROVED
ARRANGEMENTS for
JOBSEEKERS
The new convention of 6 May 2011, on unemployment bene-
fit, resumes the convention drawn up in 2009 while improving
its provisions.
Signed on 6 May 2011 by Medef, employment (PPAE).
GROWTH IN CGPME and UPA, as well as by the The convention of 6 May 2011 includes
CFDT, CFE-CGC, CFTC and CGT-FO, the several changes. Besides taking into
REDUCED new convention on Unemployment account the pension reform arising
ACTIVITY insurance concerns all employees from the law of 9 February 2010, the
whose employment contract termina- text improves the conditions for taking
In 2011, 41% of
ted after 1st June 2011. The text, which responsibility for jobseekers receiving
Unemployment
insurance recipients takes into account the provisions of the a disability pension or subject to seas-
were working on a national interprofessional agreement onal unemployment. From now on,
reduced basis, i.e. 10.5% of 25 March, extends until 31 December unemployment benefit can be combi-
more than in 2010, taking 2013 the majority of the benefit rules ned with the 2nd or 3rd category
into account the increase arising from the previous convention disability pension, according to the
in unemployment.
on Unemployment insurance, dated 19 Social security rules (Article R 341-15),
Started in 1962, this
arrangement makes
February 2009. provided that the income from the last
it possible, subject to job that gave entitlement to rights is
conditions, to combine Three changes also combined with the pension. As of
an income and an 1st June 2011, the benefit rules specific
Unemployment Among the major principles negotiated to seasonal unemployment were abol-
insurance allowance. by the social partners in 2009, there is ished. Those people whose job was
For 2011, 26.2%
one relating to a benefit period equal considered seasonal now receive bene-
of Unemployment
benefit (ARE) recipients from now on to the duration of paid fits under the conditions of the general
combined income and work (up to 24 months for under 50s), a scheme. The third change to the
the allowance, up by 1.9 single benefit stream and the relaxing convention of 6 May 2011 concerns
points compared to 2010. of conditions to access Unemployment employers. The text establishes the
One out of two benefit insurance (entry into the scheme after conditions for a decrease in the
recipients working on a minimum of four months’ work over a Unemployment insurance rate of
a reduced basis (52%)
period of 28 months), and finally the contribution, both for employers and
therefore claims an
average allowance of granting of benefit subject to an active for employees, according to the
768 Euros that they search for work, within the framework scheme’s operating profit/loss and its
combine with an income of a personalised plan for accessing debt level.
corresponding to an
average of 69 hours
of work per month.
16| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011

17. 2
4,712,675 Jobseekers
receiving benefits
Jobseekers receiving Unemployment insurance
JOINT MANAGEMENT CONSOLIDATES ITS ROLE
2,052,408
2,477,992
JOBSEEKERS Jobseekers receiving Solidarity benefit
425,583
iN 2011
(monthly average)
Benefit recipients
2,667,342 Jobseekers
in training
or conversion
182,842
CSP, CRP, CTP conversion
70,850
Training Unemployment Insurance
78,642
Training Solidarity Benefit
Source: Pôle emploi, Unédic (DEFM 33,350
A, B, C, D, E + DRE)
State early retirees 6,508
Not receiving benefits
2,045,333
UNEMPLOYED PEOPLE RECEIVING BENEFITS BY AGE AND SEX
ARE ARE and AREF casual workers ARE and AREF
and AREF in the entertainment industry Temporary workers
Women Men Women Men Women Men
60 ans and over 60 ans and over 60 ans and over
55 to 60 55 to 60 55 to 60
50 to 55 50 to 55 50 to 55
45 to 50 45 to 50 45 to 50
40 to 45 40 to 45 40 to 45
35 to 40 35 to 40 35 to 40
30 to 35 30 to 35 30 to 35
25 to 30 25 to 30 25 to 30
20 to 25 20 to 25 20 to 25
under 20 under 20 under 20
200,000 150,000 100,000 50,000 0 50,000 100,000 150,000 200,000 6,000 4,000 2,000 0 2,000 4,000 6,000 8,000 10,000 12,000 20,000 10,000 0 10,000 20,000 30,000 40,000 50,000
Field: Whole of France - Source: FNA
PEOPLE RECEIVing AN ARE
4,576,000
OR AREF BENEFIT AT LEAST
ONCE IN 2011, FOR AN
AVERAGE OF 2,183,000
PEOPLE RECEIVING BENEFITS
EVERY MONTH.
UNEMPLOYMENT 2010 2011 Change over
one year
INSURANCE Filed Cases
Admission decisions
8,154,024
2,164,376
8,249,291
2,194,917
1.2%
1.4%
ACTIVITY Rejection decisions
First payments
2,537,662
3,521,971
2,414,166
3,628,176
-4.9%
3.0%
IN 2011
Including write-backs 1,092,214 1,135,486 4.0%
Cessations of payment 3,366,291 3,492,902 3.8%
Including resumption of work 673,081 725,211 7.7%
Including end of regulatory rights 1,024,088 1,071,422 4.6%
Field: Unemployment insurance, all benefits, whole of France. Source: STMP. Gross data.
ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 17

18. I N D E M N I F I C A T I O N
THE RETURN
TO WORK
SUPPORT MEASURES
ARE MAINTAINED
The convention on Unemployment insurance of 6 May 2011
maintains and reinforces the support measures encouraging
a return to employment.
In order to make it easier for them to Euros per year. Included in these bene-
return to work, unemployment benefit fits are training courses, employer’s
recipients may use their benefits in the assistance within the framework of a
form of assistance granted according to professional training contract and mea-
their individual situation. The three sures designed to lift the barriers to the
arrangements provided for in 2009 have active search for or return to work: relo-
been maintained by the new convention cation assistance, driving licence funding,
on Unemployment insurance of 6 May childcare assistance for single parents
2011. They concern compensatory not receiving Unemployment benefit.
A COMPENSATORY allowance upon redeployment (ARD) in
ALLOWANCE UPON the event of taking up a lower-paid job Special extended measures
than the previous one, assistance for the
REDEPLOYMENT takeover or creation of a company (ARCE) The new convention also maintains
Reserved for people in the form of capital paid in two instal- special benefits for employees affected
who cannot benefit ments, and finally the option to combine, by short-time working. These measures
from the combination of under certain conditions, the unemploy- had been taken by the social partners in
Unemployment benefit ment benefit with a salary (reduced reaction to the economic crisis of 2009.
with their pay, the activity). Alongside these provisions In 2011, Unédic contributed 20 million
compensatory
financed directly by the scheme, Unédic Euros to financing the Long-term
allowance upon
redeployment makes it also contributes to benefits accessible to reduced activity arrangement (APLD),
easier to take up a all jobseekers, whether or not they fall which provides for the payment of
lower-paid job under the Unemployment insurance additional short-time working allow-
(minimum difference of scheme. This contribution is made ances for employees experiencing an
15% per equivalent hour within the framework of its contribution extended reduction in activity beneath
of work). It concerns to the financing of the operating costs of the legal or contractual work period. This
benefit recipients aged
Pôle emploi. This financing at a rate of arrangement was maintained in 2011.
50 or over, and those
who have been 10% of employers’ contributions to the The initial financial package of 150 mil-
receiving benefits for at Unemployment insurance scheme lion Euros, granted by the social partners,
least 12 months. represents approximately 3.0 billion was not used in full.
18| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011

19. 2
€ 976.6 M
PAID TO ASSIST JOBSEEKERS
TAKING OVER OR CREATING
JOINT MANAGEMENT CONSOLIDATES ITS ROLE
COMPANIES. IN 2011, 74,476
RECIPIENTS OF UNEMPLOYMENT
INSURANCE BENEFITED FROM
THIS ARRANGEMENT.
76% = 2 payments
ARCE RECIPIENTS
50 557 557
50
45,24 % %
45,24
41 779 779
41
37,38 % %
37,38 = 1 payment
RE-REGISTERED
50 557 41 779
45,24 % 37,38 %
24 %
moins de
moins de 25 a
AS UNEMPLOYED 18 218 218
18
16,30 % %
16,30
19,4% 4,6% de 25 à 25 à 29
de 29 ans
de 30 à 30 mo
de 39 à 39
ans
de 40 à 40 de 2
de 49 à 49
ans
All the recipients who received Assistance for 50 ans ou
50 ans ou plu3
de
jobseekers taking over or creating218
18 a company Field: benefit recipients having
16,30 % Not received at least one ARCE Total de10
Total 100,0 4
in a single payment re-register as jobseekers payment in 2007
re-registered Re-registered Source: FNA, benefits file 50 a
within five years.
Tot
ARCE RECIPIENTS ARCE RECiPIENTS ARCE RECIPIENTS BY LEVEL OF
BY SEX (%) BY AGE BRACKET (%) GENERAL EDUCATION (%)
Others (Basic education, Lower than CAP or BEP
8.9 8.9 no training etc.) 2.8 vocational qualification 4.4
10.5 10.5
Women Baccalaureate
Women - 25 - 25 CAP/BEP or level or
29.4 29.4 25 to 29 to 29 25.4 25.4
25 18.3
8,9
10,5 18.3 equivalent equivalent 21.9
Femmes 30 to 39 to 39
30 vocational
40 - de 25 ans
40 to 49 to 49 qualification
29,4
Men Men 50 + 50 +
de 25 à 29 ans 25,4 18,3
37.4
70.6 70.6 de 30 à 39 ans 36.9 36.9
de 40 à 49 ans
Hommes 50 ans et + Field: benefit Baccalaureate 2011 2
70,6 36,9 recipients receiving Non ren
ARCE for the first
Non renseign
level + 2 years
17.0 Aucune
time. Aucune form
Field: recipients of Unemployment insurance including training, CTP-CRP-CSP as at 30 November 2011; Source: National file
ARCE recipients receiving ARCE for the first time in 2011. of benefit recipients,
Baccalaureate level inférieur
inférieur au C
No
+ 3 years and over 16.5
Source: National file of benefit recipients, Unédic calculations. Unédic calculations. niveau BAC B
niveau o
Au
niveau B
niveau BAC+ inf
niveau B
niveau BAC+ niv
niveau C
niveau CAP/ niv
études p
études primaniv
Total 100 1
Total niv
€984 M FOR UNEMPLOYMENT BENEFIT ét
To
AND TRAINING
In 2011, on average 78,200 jobseekers received Unemployment Benefit and Training every month, within the framework of
a training programme prescribed by Pôle emploi encouraging a return to work. Over the year, the Unemployment insurance
scheme devoted 984 million Euros to training Unemployment benefit (AREF) recipients, which is close to the 2010 level (982
million Euros). This 0.2% increase is explained by a 0.72% increase in the average amount of daily allowance, and a 0.52%
reduction in the number of days for which payments are made.
ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 19

20. I N D E M N I F I C A T I O N
UNEMPLOYMENT INSURANCE
A CONTINUOUSLy
IMPROVING
SYSTEM
Unédic monitors compliance with regulation and the decisions
of the social partners. Through its audit missions, it also helps
them in their deliberations in order to improve the perfor-
mance of the Unemployment insurance system.
LEGAL EXPERTISE With the law of 13 February 2008, the The audits in 2011
AT THE DISPOSAL public employment service was extensiv- to guarantee the proper
ely remodelled. After two years during application of the regulation
OF STAKEHOL- which the various stakeholders explored
DERS INVOLVED and grew accustomed to their scope of
responsibility, 2011 marked the comple-
The aim of an initial audit was to verify
the correct operating of the incentive
IN THE EMPLOY- tion of this transition process. During measure to return to work (combina-
MENT SECTOR this period, Unédic adapted all of its acti- tion of unemployment benefit and a
vities in order to progress from leading a salary). By examining the conditions for
On Unédic’s extranet, a network to organising relations with the monitoring jobseekers, the measures to
question/answer
operators in charge of paying benefits promote this arrangement, the specific
service on
Unemployment (Pôle emploi) and recovery (Acoss, characteristics of the IT system but also
insurance regulation CCMSA, CCVRP etc.). The challenge of this the control and monitoring of activities
enables Pôle emploi adaptation consists not only in ensuring delegated to external service providers,
departments and some that the guidelines and decisions of the this audit contributed to the deliberat-
public sector employers Unédic Board are known and understood, ions of the social partners on
and expert subscribers
but also in organising, with the operators, improvements to be made.
to obtain answers to
their legal questions
the audits making it possible to verify the In the same vein, a second audit
more quickly. In 2011, proper application of legal and regulatory concerned the conditions for a case-by-
367 questions were provisions, in addition to the successful case review of the jobseekers’ files, with
asked via the extranet, operating of their internal control the aim of assessing compliance with
187 by email and 360 arrangements. In 2011, Unédic conduc- the regulatory texts signed by the social
specific requests, ted four audits within Pôle emploi’s partners and the delegations granted
formulated by
departments. These audits were decided by the Unédic Board of Directors to Pôle
employers, the French
Ombudsman or that of by the Unédic Board and scheduled in a emploi, to rule on the individual situat-
Pôle emploi, were sent multiannual plan, in coordination with ions of jobseekers. This audit resulted
a written answer. the operators in question. in a project to improve the submission >>>
20| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011

21. 2
111,759
JOINT MANAGEMENT CONSOLIDATES ITS ROLE
Overpayments Voluntary redundancies
INDIVIDUAL CASES PROCESSED 50,557
45.24%
41,779
37.38%
Pursuant to the convention on Unemployment in- Total for
surance, the local social partners, convened in joint the whole
regional bodies (IPR), have the jurisdiction to rule on of France:
111,759
individual cases of jobseekers or employers for 100%
whom an individual review is necessary. The Uné- 18,218
16.30% Other (total unemployment
dic Board has also given Pôle emploi the authority without termination of the
to take decisions by means of delegation. But this employment contract,
Assessment of certain increased payments etc.)
authority only concerns cases for which Pôle emploi
entitlement conditions (1,205 – 1.08%)
is in a position to take a positive decision.
3 INDICATORS Year
2010
Year
2011
Target
2014
TO MEASURE
COMPENSATION First payments within deadlines ns 89% 93%
Starting point to define objectives to Quality of processing benefit requests 91,7 % 90.8% nd
be achieved by Pôle Emploi Share of overpayments not recovered 1,48 % 1.63 % nd
FAILURE TO DECLARE A PERIOD 2009 2010 2011
OF WORK: LEADING Number of cases
Amount (in thousands of Euros)
MECHANISM FOR FRAUD
Beyond the financial aspect, the increase in the number of
Source: Pôle emploi.
cases of detected fraud is all the more striking, since the
number of benefit recipients has not changed in the same
proportions. The failure to declare periods of work re-
mains the leading mechanism for fraud (30%). The second
most frequent basis for fraud is associated with fictitious
jobs and false declarations by employers (15%). 11,805 1,761 18,252 2,688 18,763 3,785
>>> of files to decision-making bodies. A emploi’s internal audit, a fourth audit them. In 2011, the rate of overpay-
third audit checked the efficiency of focussed on the management of over- ments was 3.1% of benefits paid, and
recovery by Pôle emploi of sums due by payments by Pôle emploi departments. the balance of overpayments to be
employers in the event of redundancy The efficiency of the recovery of over- recovered was 1.6% of benefits paid.
without actual and serious basis. The payments depends in large part on the This audit revealed contrasting situa-
result expected by the Unemployment speed of bringing prelitigious recovery tions in the four audited regions, in
insurance scheme came to 16 million proceedings (amicable letter and formal addition to inconsistencies in the liti-
Euros in additional contributions. notice). The aim is to quickly reach an gious action which is potentially
Finally, within the framework of a joint agreement with the jobseeker, in order prejudicial to the Unemployment insu-
audit mission with the manager of Pôle to avoid costly litigation proceedings for rance scheme.
ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011 | 21

22. I N D E M N I F I C A T I O N
NEW OBJECTIVES for
POLE EMPLOI
Signed in 2008, the first State/Unédic/Pôle emploi tripartite
agreement focussed on the resources given to Pôle emploi as
part of the merger of the Assedic and Anpe employment
agencies. Three years later, a new agreement is setting the
objectives to be attained for the 2012-2014 period.
Signed on 19 January 2012 by the social second objective concerns the streng-
partners, the State/Unédic/Pôle thening of the relationship with the
emploi tripartite agreement sets the territories, by adapting Pôle emploi’s
Pôle emploi objectives for the 2012- service offer to territorial realities
2014 period. It was the subject of (characteristics of the employment
THE JOINT careful preparation throughout 2011. area, partnership opportunities etc.).
LETTER SETS The tripartite agreement sets the fra- The tripartite agreement also sets as
THE AGENDA mework of reference for Pôle emploi’s
action, as well as the priorities identi-
the third objective the continuation of
the effort to optimise Pôle emploi’s
In a joint letter fied by the State and Unédic, its joint resources, which involves streamlining
addressed on 6 May financers. Indeed, the Unemployment its organisation and assigning the
2011 to the local insurance scheme contributes 64% of benefit thereof to support jobseekers.
authorities, the social
Pôle emploi budget (3 billion Euros in
partners set out the
objectives that they 2011). Concrete objectives
want to see in place at The new agreement gives concrete
Pôle emploi. Making expression to the expectations of the Among the concrete expressions of
"improving jobseeker" social partners as they were expressed these objectives is that of establishing
support a priority, the on 6 May in the joint letter relating to initial contact with the newly-
text demands the the monitoring, support and redeploy- registered jobseeker within ten days,
reinforcement and
ment of jobseekers (see opposite). and putting in place a regular follow-
personalisation of
jobseeker services, an Three main objectives are set by the up after four months. With regard to
increase in the new text. companies, it is about better targeting
resources devoted to With regard to jobseekers, the new services by focussing resources on
their support, a better- agreement seeks to strengthen the employers who are encountering
targeted service offer to personalisation of the service offer, recruitment difficulties in industries
companies and a closer
because not all jobseekers and under pressure, or offering sustainable
relationship with the
territories.
employers have the same needs. A jobs.
22| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011

23. 2
45% OF JOBSEEKERS
JOINT MANAGEMENT CONSOLIDATES ITS ROLE
REGISTERED ON A GIVEN DATE ARE STILL UNEMPLOYED ONE YEAR
AFTER THEIR REGISTRATION.
AVERAGE RATE 100%
90%
Total
Under 30
OF LONG-TERM 80% 30-39
40-49
70%
50 or over
UNEMPLOYMENT BY AGE 60%
50%
As a new indicator to understand the deve- 40%
lopment of unemployment, the rate of long-
30%
term unemployment makes it possible to
20%
evaluate the risk of remaining registered on
the jobseeker lists for a certain length of 10%
time, according to whether one is a man or 0%
a woman, according to age, sector of activity, 0 6 MONTHS 12 MONTHS 18 MONTHS 24 MONTHS
region or level of basic training. This study
Source: FNA. Field: registered as jobseekers, whether receiving benefits or not, from April 2008 to March 2009,
was conducted for the first time in 2011 excluding appendices 8 and 10, for the whole of France.
(publication January 2012).
NEW INDICATORS CENTRED ON DECISION-MAKING ASSISTANCE
OBJECTIVE INDICATOR
Increase the number of returns to sustainable employment Exit rate to sustainable employment
… particularly for long-term jobseekers Hommes Exit rate to sustainable employment for long-term
70,6 % jobseekers
Reduce the risks of long-term unemployment… Share of jobseekers still on the lists twelve months
after their registration
… particularly for young people and senior citizens Share of young people (under 25) and senior citizens
(50 and over) still on the lists twelve months after their
registration
Avoid jobseekers staying out of work for too long Out of work for the last 24 months
Improve the efficiency of training programmes Exit rate to sustainable employment 6 months after
any prescribed training
These new indicators allow for more detailed operational control and swifter adjustment of actions according to the first
results obtained.
RAPPORT D’ACTIVITÉ – ASSURANCE CHÔMAGE 2011 | 23

24. THE CSP
ReplaceS
THE CRP AND THE CTP
The new arrangement unifies measures designed for
employees affected by a redundancy procedure for economic
reasons. Its implementation is entrusted to Pôle emploi.
The improved job security contract (CSP) year, a payment close to the previous
is a result of the will of the social part- net salary, and to organise the initiation
ners and the State to create a single of the return-to-work programme
arrangement to manage employees through personalised and reinforced
affected by a redundancy procedure for support. The improved job security plan
economic reasons. Arising from the provides for a follow-up by a specific
national interprofessional agreement of referent, a skills assessment, training
31 May 2011, the CSP was applicable as courses or short periods of work (two
of 1st September 2011, that is to say for weeks to six months).
any employees whose redundancy pro-
THE IMPROVED cedure for economic reasons was An arrangement adapted
JOB SECURITY initiated after this date. Companies to local realities
CONTRACT TAKES must offer the CSP to their employees
as soon as they envisage a redundancy Throughout this entire period, any
UP AND IMPROVES procedure for economic reasons, either employee made redundant for econo-
THE EXISTING during the interview prior to redundancy, mic reasons and furnishing proof of at
ARRANGEMENTS or in the first letter of invitation to the least one year of service shall receive
first meeting of the staff representative benefits equal to 80% of their former
With the CRP, the bodies. The salary. They may also get unemploy-
initiative to offer the arrangement concerns companies with ment benefit in the form of a
arrangement to the fewer than 1,000 employees engaged in compensatory allowance upon rede-
employee belonged
a redundancy procedure for economic ployment covering the difference in
solely to the employer.
The CSP, like the CTP reasons and any companies in receiver- salary of a new job that is lower paid
before it, can now be ship or compulsory liquidation, than the previous one, or relocation,
offered directly by Pôle irrespective of their staff numbers. As moving allowances, etc.
emploi. The CSP also for the employees, they have freedom of The social partners also wanted this
enables recipients who choice. If they do not opt for the CSP, arrangement to be constantly adapted
have the option to carry
they will receive unemployment benefit. to the economic reality of employment
out periods of work
during the occupational
Nearly one out of two employees made areas. The CSP is controlled jointly by
changeover period, redundant for economic reasons chose the State and the social partners:
which was not provided the CSP option in 2011. • nationally, within the framework of a
by the CRP. The CSP’s objective is to maintain, for a political steering committee; >>>
24| ANNUAL REPORT – UNEMPLOYMENT INSURANCE 2011