A New Hurdle for Youth Employment: Increased Fees on Apprenticeship Contracts
The query revolves around the potential increase in training expenses that corporations might encounter.
Get ready for a potential spanner in the works for youth employment! The government's planning to add several hundred euros to each apprenticeship contract starting July 1st. And, with youth unemployment already being a major concern, this might not sit well.
After trimming hire bonuses and decreasing apprentice salaries since March 2025, the government's all set to put the squeeze on apprenticeships again. This time, they're targeting companies hiring apprentices at or above the bachelor's degree level. According to Les Echos, the government's eyeing a charge of 500 to 750 euros per contract. The Ministry of Labor themselves have confirmed the plan, aiming to implement it by July 1st, though the official announcement is yet to be made.
Now, it's worth noting this fee's not set in stone. The government wants each industry to adjust their contribution according to market needs. For in-demand jobs, the bill might be reduced, while oversaturated sectors could pay the full amount. The idea behind this, as recalled by Minister of Labor Astrid Panosyan-Bouvet's cabinet, is to "insert young people directly into the labor market after their studies, without passing through unemployment."
A Decrease in the Number of Apprenticeships?
Slapping a hefty price tag on apprenticeships might just slow down youth employment. The National Association of French Apprentices shares this concern. Their president, Baptiste Martin, predicts a "dramatic decrease" in apprenticeships at the bachelor's degree level and above. And guess what? Several OPCOs are already reporting a decrease in the number of new contracts at the start of the year 2025. This points to a "slowdown in higher education" for the current school year, leaving some students high and dry.
Apprenticeships: Safer Bet or Tougher Times Ahead?
The government admits that a decrease in the number of apprentices might happen, but with a 30 billion euro savings target on the horizon, apprenticeship— previously heavily subsidized by the state—isn't immune to cuts. The government justifies this stance, saying "we can't keep this system on eternal life support." In 2024, the government spent 16.5 billion euros in support of apprenticeship, according to a Court of Auditors report published in January.
Lower Quality Education?
Even for those who manage to secure an apprenticeship, increased fees might not be all sunshine and rainbows. The fees won't be directly billed to businesses, but to training centers, which might choose to absorb the cost rather than risk losing a company to a competitor. And, if they do, it could come at the cost of apprentice support and quality, as larger classes, less experienced instructors, and rushed company visits could become the norm. Meanwhile, the Ministry of Labor assures they're "keeping these issues in mind." We'll have to wait until April 30 to hear more, when Minister Astrid Panosyan-Bouvet plans to present the conclusions of the consultation on apprenticeship funding to social partners.
© Marilia Castelli / Unsplash Written by Charlotte Rousset, Journalist in the Employment section of our website, with a special focus on topics of social law, career, and worker remuneration.
The Nitty-Gritty
- Financial Burden: Increased fees for apprenticeship contracts could increase the financial burden for employers, potentially reducing the number of apprenticeships available and negatively impacting youth employment.
- Training Quality: If the additional fees are used to improve training quality and apprentice support services, this could enhance the appeal of apprenticeships and lead to more comprehensive training for apprentices.
- Support Mechanisms: Implementing or strengthening financial support mechanisms for apprentices from disadvantaged backgrounds could help maintain accessibility and equity in apprenticeship programs.
- Market Needs: The government's aiming to encourage industries to adjust their contributions based on market needs, allowing for more flexibility in the fees charged and possibly more favorable outcomes for in-demand jobs and industries.
- The increased fees on apprenticeship contracts, estimated to be between 500 to 750 euros per contract, could pose a significant financial burden on employers, potentially leading to a decrease in the number of apprenticeships available.
- If the additional fees are absorbed by training centers, there may be a compromise in the quality of education and support services provided to apprentices, possibly resulting in larger classes, less experienced instructors, and rushed company visits.
- To maintain accessibility and equity in apprenticeship programs, implementing or strengthening financial support mechanisms for apprentices from disadvantaged backgrounds could be essential in offsetting the increased costs and ensuring equal opportunities.
- The government's plan to encourage each industry to adjust their contribution according to market needs aims to foster greater flexibility in the fees charged, potentially leading to more favorable outcomes for in-demand jobs and industries.
