This is one of the first issues tackled by the Bayrou government. After a few days of arbitration, the Ministry of Labor recorded, on Sunday December 29, the reduction in apprenticeship aid for the year 2025. The finance law fell into oblivion after the vote of censure, the new executive s is happy with a decree – announced but not yet published, it will be in January – to enact this reform.
No more apprenticeship bonus of €6,000, paid regardless of the size of the company and the level of education of the apprentice; place for a renovated version which grants €5,000 per contract to companies with fewer than 250 employees, and €2,000 to others. All this, always without distinction of level of study. For young people with disabilities, aid is maintained at €6,000. As a reminder, apprenticeships have grown significantly in recent years thanks to massive support: in 2022, more than 850,000 contracts have been signed. A record.
Such a discount was expected by employers. As part of its objective of reducing the public deficit, the previous government had already announced that it was considering reducing the budget allocated to these hiring bonuses by 1.2 billion euros. In 2022, the system had cost the State 14.4 billion according to an assessment carried out by the General Inspectorate of Finance (IGF) and the General Inspectorate of Social Affairs (Igas).
“We are reassured about the arbitration”, reacted in a press release the Confederation of Small and Medium Enterprises, which was worried about a more drastic restriction. “There is not a massive withdrawal of learning aids. The apprenticeship contract remains the most supported contract in the labor market. remarks Bruno Coquet, president of the firm Uno – Studies and consultancy, associate researcher at the French Observatory of Economic Conditions.
A barrier to hiring for small businesses
But if the cut is less severe than expected, it still constitutes a brake on hiring for companies with the most modest means. It will actually be “less advantageous for a small business to hire an apprentice, regardless of their level of qualification”, observes Bruno Coquet. According to the Ministry of Labor, companies with fewer than 250 employees employ around 80% of apprentices; the number of contracts therefore risks mechanically decreasing.
If the number of apprentices declines, the activity rate of young people should change accordingly. Also boosted by hiring bonuses, it was 42.2% in 2022. “With previous reforms, we transformed many students into apprentices. So they became active,” explains Bruno Coquet.
“windfall effects”
This new reform of learning aid revives the debate around their distribution. Certainly, the decree now distinguishes companies with fewer than 250 employees from larger companies, which have more resources to train their apprentices. But it leaves apprentices at baccalaureate or sub-baccalaureate level and those pursuing higher education on an equal footing.
Or, “for higher education students, the transition to apprenticeship does not differentiate in terms of professional integration”, underlines Bruno Coquet. In other words, apprentices or students in initial training have almost the same chances of getting a job. “There is no need to help employers hire them,” adds the researcher.
Last March, a report jointly carried out by the IGF and the Igas pointed out “windfall effects”, companies favoring apprenticeship contracts in order to receive aid. “Public support for apprenticeships in higher education appears disproportionate in view of its effects on integration into employment”, concluded the authors.
To adjust the measure, this same report recommended the elimination of hiring assistance for work-study students enrolled in a bachelor’s or master’s degree. The Bayrou government considered that apprenticeship in higher education also allowed students with the most modest financial resources to pursue long-term studies, thanks to remuneration.