Contrat Nouvelle Embauche - Impact - INSEE and ACOSS

INSEE and ACOSS

The French National Institute for Statistics (INSEE) calculated a lesser result, considering the CNE will enable a net creation of 10 to 20,000 new jobs each trimestrial period (i.e. 40,000 to 80,000 new jobs per year) .

The impact of this new job contract has been questioned by Le Canard enchaîné, which quoted the INSEE's study and the ANPE's records, as well as by trade unions. Since the more recent First Employment Contract (CPE) has been rejected after months of protest, unions have also been trying to cancel the CNE. On the other hand, employers unions (Medef) consider it is major reform. However, the Canard Enchaîné pointed out that the governmental ACOSS numbers (400 000 contracts) had been extrapolated and were thus only estimations, which had been largely exaggerated. The ACOSS, in charge of these estimations, later reduced the total number by 20% (thus making a total of 320 000 contracts). According to the ANPE agency (in charge of unemployment and of finding new jobs), 600 CNE had been signed on August 19, 2005, a full two weeks after the beginning of the CNE. The Canard Enchaîné considers the number of net created jobs calculated by the INSEE (10 to 20 000 jobs each trimestrial period) makes it a "a drop in the ocean". Furthermore, several CNE were put in question before courts. Thus, confronted to multiple reversal of the firings because of "abuse of right", "the CGPME, organisation of small employers, gave as instructions to its members to justify from now on ruptures" (i.e. not to use the main feature of the CNE contract). Finally, an April 28, 2006 judgment requalified a CNE in a normal indeterminate contract (see below).