Improve unemployment insurance.

Summary The purpose of unemployment insurance is to compensate unemployment episodes as well as possible while limiting their duration. Far from fulfilling this mission, the French system operates a large-scale redistribution between sectors of activity and salary levels. Its limited effectiveness encourages job instability and contributes to maintaining high unemployment. Yet, there is considerable room for manoeuvre to limit these transfers and the optimisation behaviour they encourage. The system should be refocused on individual incentives to remain in employment and return to work, and its management should be made more coherent through better coordination between insurance and job seeker support.