The Directorate for the animation of research, studies and statistics (Dares) presented the results of the experiment “Zero long-term unemployed territories”(new window).
On trial since 2017 in ten territories in France, this system offers a new approach to employment and social inclusion. It consists of reallocating costs linked to unemployment (allowances, RSA, etc.) to finance job creation.
Employment-oriented enterprises (EBE) have been created to hire long-term unemployed people on open-ended contracts (CDI). They carry out their activities in the social and solidarity economy sector. These companies meet needs that are not covered in the region and that are useful to the population (recycling shops, grocery stores or solidarity garages, etc.).
A positive impact on the living conditions of employees
The people recruited in these employment-oriented enterprises (EBEs) are more often women, young people (more than half are under 42) and people with little qualifications. The majority of them have no diploma (28.3%).
The report underlines the positive effect of this experiment on the beneficiaries. In the absence of this device, the employees of the EBE would have been only 55.9% to be in employment and barely more than a third in contract of indefinite duration (CDI).
Entry into EBE has helped improve their living conditions and general well-being (health, social integration, self-confidence, serenity vis-à-vis the future, etc.). Beneficiaries report having more bearable housing costs and easier access to driving licenses and personal transport. They are also less likely to forgo care for financial reasons.
Fragilities that remain
The activities developed by EBEs must not compete with companies already present in the territory. The report underlines the difficulties arising from this principle of non-competition which limits the performance of EBEs. These must find sufficiently profitable activities to ensure their financial equilibrium. Their economic model was all the more upset by the health crisis which resulted in a decrease in their turnover.
The EBEs nevertheless mobilized strongly to meet the needs of the local population during the crisis (manufacture of masks, sale of fruit and vegetables in short circuits, care for vulnerable people, etc.) which made it possible to improve their visibility and their legitimacy in the territories, according to the Dares.