2025-001 - Work agencies

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DoesFranceTravailCostTooMuch?

FranceTravail,JobcentrePlus(UnitedKingdom),ETA (UnitedStates),BundesagenturfürArbeit(Germany), SEPE(Spain)

Date:August6,2025

LouisBéduneau

3BudgetofJobcentrePlus(UnitedKingdom)

6BudgetoftheSEPE(Spain)

1Introduction

ThedeterioratingFrenchbudgetaryframeworkisacriticalparameterofthe country’seconomicpolicy,reflectingtheprioritiesandcommitmentsoftheState intermsofpublicspendingandtaxrevenues.Ithasoftenbeenoverlookedin thedesignofpolicies.Budgetarytrade-offsarebecomingincreasinglycomplex, requiringin-depthreflectionontheprioritiestobegiventovariouspublicpolicies.Thedecisionsmadeinthiscontextwillhavesignificantrepercussionson theFrencheconomy,socialcohesion,andthecountry’sabilitytoinvestinthe future.Difficultandpainfulchoiceswillneedtobemadeinthiscontext.Itis withinthisframeworkthatthereflectionhasfocusedontheefficiencyofpublic spendingbyselectingoneorganization:FranceTravail.Withabudgetof 18,it islegitimatetoquestionitseffectiveness.TheobjectiveofthisstudyistocomparethisorganizationwithmajorcountrieswithinandoutsidetheEuropean Union.Thisdocumentcomparestheoperationalbudgetsofemploymentagenciesinfivecountries:France(FranceTravail)(2),UnitedKingdom(Jobcentre Plus)(3),UnitedStates(EmploymentandTrainingAdministration-ETA)(4),Germany(BundesagenturfürArbeit-BA)(5),andSpain(ServicioPúblicodeEmpleo Estatal-SEPE)(6).Theanalysisfocusesonthe2024budgets,theirbreakdown (salaries,training,operations,others),andtheirevolutionovertheperiod20202024.Thedataareadjustedpercapitatoreflectdemographicdifferences.This studyaimstoprovideanoverviewoftheresourcesallocatedtosupportingjobseekersinthesecountries,whileconsideringtheeconomicandstructuralcontextsspecifictoeachsystem.Wewillhighlightthespecificitiesanddifferences ofeachapproachimplementedbycountryandpositionFranceTravailrelative toitscounterparts.Wewillproposeacoherentimprovementstrategyinthe conclusion(9).

2BudgetofFranceTravail

2.1GeneralOverview

FranceTravail,formerlyPôleEmploi,istheFrenchpublicagencyresponsible forsupportingjobseekersandmanagingunemploymentbenefits.Itstotalbudgetfor2024isestimatedatapproximately 18,ofwhich 4,2 isforoperationalexpenses(theremainderbeingdedicatedtounemploymentbenefits).Thebudget isfundedbyUnédic,theState,andEuropeanorregionalfunds.Comparedtothe othercountriesstudied,FranceTravail’soperationalbudgetisrelativelymodest duetostrongcentralizationandrelianceonUnédiccontributions,whichlimit thefundsavailableforoperationscomparedtomoredecentralizedsystems(like theUnitedStates)orthosewithhigherstatesubsidies(likeGermanyandthe UnitedKingdom).

2.2BreakdownoftheOperationalBudget

• Salaries: 1,26 to 1,68 (30-40%),forapproximately50,000agents,withanaveragenetsalaryof 2630month (nationalmediansalary: 2150month,Insee2024; averageunemploymentrate2024:7,4%,Insee).

• Training: 1,26to1,68(30-40%),fortrainingprogramsandemploymentsupport. Nationaleducationbudget2024: 63,6 (2,2%ofGDP,GDP= 2900,source:PFL 2024,Insee).

• Operations: 0,84 to 1,05 (20-25%),foragenciesanddigitaltools.

• Others: 0,21 to 0,42 (5-10%),forpartnershipsandcommunication.

Intermsofbudgetallocation,thefocusisonsalariesandtraining.Akeyaspecttonoteistraining.Itrepresentsthelargestshareoftheoperationalbudgetcomparedtoothercountries(3.2,4.2,5.2),exceptforSpain,whichissimilar(6.2).However,seriousreflectionisneededonthecostlyFrencheducation system(PFL2024, 63,6)relativetoitsoutcomes.Withamoreintegratedbudgetbetweeneducationandemployment,areflectiononlinkingthetwocould bevaluable.First,allocatingthebudgetforpost-studytrainingtotheeducation budget,resultingfrominadequateinitialtraining,couldraiseawarenessofthe consequencesofeducationonfuturebudgetsandaligntheobjectivesofboth organizations,whichmayoperateseparately.

2.3EvolutionoftheOperationalBudget(2020-2024)

• 2020: 3,5 (51,17inhabitant).

• 2021: 3,5 (51,17inhabitant).

• 2022: 3,8 (55,56inhabitant).

• 2023: 4,0 (58,48inhabitant).

ComparisonofEmploymentAgencies:France,UK,USA,Germany,Spain

• 2024: 4,2 (61,40inhabitant).

Theoperationalbudgetincreasedfrom 3,5 to 4,2 between2020and2024.The increaseoccurredpost-crisis,risingfrom 51,17inhabitant to 55,56inhabitant.The upwardtrendcontinuedbetween2022and2024.

2.4EvolutionoftheOperationalBudgetRelativetoGDP(20202024)

FranceTravail’soperationalbudgethasremainedrelativelystableasashare ofFrenchGDP,withaslightincreaseduringtheCovidcrisis(2020-2021)dueto increasedneedsforjobseekersupport:

• 2020: 3,5 (0,15%ofGDP,GDP= 2300).

• 2021: 3,5 (0,14%ofGDP,GDP= 2500).

• 2022: 3,8 (0,14%ofGDP,GDP= 2650).

• 2023: 4,0 (0,14%ofGDP,GDP= 2800).

• 2024: 4,2 (0,14%ofGDP,GDP= 2900).

Therelativestability(0,14-0,15%)reflectsaconsistentprioritizationofemploymentdespitetheeconomiccontractionin2020.Theslightincreasein2022-2024 correspondstoinflationandinvestmentsindigitalization.Thisbudgetstability resultsfromitsstructure.WhenabudgetisbasedonapercentageofGDP,it imposesincreaseswithoutconsideringefficiency-drivenadjustments.Wewill seethatthisstabilityissimilartothatpracticedbytheUnitedKingdom(3.4).

3.1GeneralOverview

JobcentrePlus,managedbytheDepartmentforWorkandPensions(DWP),administersunemploymentbenefits(e.g.,Jobseeker’sAllowance,UniversalCredit) andsupportsjobseekers.Itstotalbudgetfor2024isestimatedatapproximately 80,ofwhich 4,9 isforoperationalexpenses.ThebudgetisfundedbytheBritish government.

3.2BreakdownoftheOperationalBudget

• Salaries: 1,47 to 1,96 (30-40%),forapproximately80,000agents,withanaveragenetsalaryof 2920month (nationalmediansalary: 2400month,ONS2024; averageunemploymentrate2024:4,2%,ONS).

• Training: 0,98 to 1,47 (20-30%),forprogramssuchastheBacktoWorkPlan. Nationaleducationbudget2024: 120 (3,9%ofGDP,GDP= 3050,source:ONS, SpringBudget2024).

• Operations: 0,98 to 1,225 (20-25%),foragenciesandITsystems.

• Others: 0,245 to 0,49 (5-10%),forpartnershipsandcommunication.

Intermsofbudgetallocation,thefocusisonsalariesandtraining.However, trainingcostsareslightlylowerthanthoseofFranceTravail(Section2.2).

3.3EvolutionoftheOperationalBudget(2020-2024)

• 2020: 4,1 (60,65inhabitant).

• 2021: 4,1 (60,65inhabitant).

• 2022: 4,45 (65,83inhabitant).

• 2023: 4,68 (69,23inhabitant).

• 2024: 4,9 (72,49inhabitant).

TheoperationalbudgetishigherperinhabitantcomparedtoFrance(+9,48).The budgetincreasedfrom 4,1 to 4,9 between2020and2024.Theincreaseoccurred post-crisis,risingfrom 60,65inhabitant to 72,49inhabitant.Theupwardtrendcontinuedbetween2022and2024.

3.4EvolutionoftheOperationalBudgetRelativetoGDP(20202024)

JobcentrePlus’soperationalbudgetslightlyincreasedasashareofGDPduring theCovidcrisis,reflectingeffortstosupportemployment:

• 2020: 4,1 (0,17%ofGDP,GDP= 2400).

• 2021: 4,1 (0,16%ofGDP,GDP= 2600).

• 2022: 4,45 (0,16%ofGDP,GDP= 2800).

• 2023: 4,68 (0,16%ofGDP,GDP= 2950).

• 2024: 4,9 (0,16%ofGDP,GDP= 3050).

TheGDPshareremainsstablearound0,16-0,17%,withaslightincreasein2020 duetotheCovidcrisis.Thebudgetincreasein2022-2024islinkedtoinflation andprogramsliketheBacktoWorkPlan.ThisfollowsasimilartrendtoFrance, withadeclineinGDPsharebetween2020and2021.

4.1GeneralOverview

TheEmploymentandTrainingAdministration(ETA),undertheDepartmentof Labor(DOL),managestrainingprogramsandunemploymentinsuranceinthe UnitedStates.Itstotalbudgetfor2024isestimatedatapproximately 70,ofwhich 5,1 isforoperationalexpenses,inadecentralizedsystemwherestatesplayakey role.

4.2BreakdownoftheOperationalBudget

• Salaries: 0,765 to 1,02 (15-20%),forapproximately17,000agents,withanaveragenetsalaryof 4550month (nationalmediansalary: 3500month,BLS2024; averageunemploymentrate2024:3,8%,BLS).

• Training: 1,02 to 1,275 (20-25%),fortheWorkforceInnovationandOpportunity Act(WIOA).Nationaleducationbudget2024: 1100 (4,5%ofGDP,GDP= 24500, source:BLS,federalbudget).

• Operations: 0,51 to 0,765 (10-15%),forfederaladministration.

• Others: 0,51 to 0,765 (10-15%),forpartnershipsandmiscellaneousexpenses.

Intermsofbudgetallocation,trainingisprioritized,followedbysalaries.The averagenetmonthlysalaryis 1920 higherthaninFrance.Thenumberofagents issignificantlylowercomparedtoothercountries.Thisdemonstratesefficiency intheresourcesemployedbytheUnitedStatesforemployment.

4.3EvolutionoftheOperationalBudget(2020-2024)

• 2020: 5,5 (16,09inhabitant).

• 2021: 5,0 (14,63inhabitant).

• 2022: 4,55 (13,31inhabitant).

• 2023: 5,0 (14,63inhabitant).

• 2024: 5,1 (14,92inhabitant).

Theoperationalbudgetdecreasedfrom 5,5 to 5,1 between2020and2024.The decreaseoccurredpost-crisis,droppingfrom 14,63inhabitant to 13,31inhabitant. TheUnitedStates’policychoicesdiffersignificantlyfromothercountries.

4.4EvolutionoftheOperationalBudgetRelativetoGDP(20202024)

TheETA’soperationalbudgetrepresentsaminimalshareofU.S.GDP,withanotabledecreasein2021-2022duetotheendofCovidemergencymeasures:

• 2020: 5,5 (0,029%ofGDP,GDP= 19000).

• 2021: 5,0 (0,024%ofGDP,GDP= 20500).

• 2022: 4,55 (0,021%ofGDP,GDP= 22000).

• 2023: 5,0 (0,021%ofGDP,GDP= 23500).

• 2024: 5,1 (0,021%ofGDP,GDP= 24500).

TheGDPsharedecreasedafter2020,reflectingdecentralizationandreducedfederalfundingpost-Covid.Theslightincreasein2024isduetoinflation.Despite asignificantlylowerGDPsharecomparedtoothercountries(2.4,3.4,5.4,6.4), employmentoutcomesdiffermarkedly.

5.1GeneralOverview

TheBundesagenturfürArbeit(BA)isGermany’sfederalemploymentagency, responsibleforunemploymentinsuranceandtrainingprograms.Itstotalbudgetfor2024isestimatedatapproximately 50,ofwhich 6,0 isforoperational expenses,fundedbyunemploymentinsurancecontributionsandfederalsubsidies.

5.2BreakdownoftheOperationalBudget

• Salaries: 1,8 to 2,1 (30-35%),forapproximately100,000agents,withanaveragenetsalaryof 3174month (nationalmediansalary: 2600month,Destatis2024; averageunemploymentrate2024:3,4%,Destatis).

• Training: 1,5 to 1,8 (25-30%),forprogramsliketheQualifizierungOffensive. Nationaleducationbudget2024: 180(4,3%ofGDP,GDP=4200,source:Destatis).

• Operations: 1,2 to 1,5 (20-25%),foragenciesanddigitalsystems.

• Others: 0,6 to 0,9 (10-15%),forpartnershipsandcommunication.

Intermsofbudgetallocation,salariesareprioritizedwith100,000agents,followedbytrainingasthesecond-largestexpenseintheoperationalbudget.

5.3EvolutionoftheOperationalBudget(2020-2024)

• 2020: 5,5 (65,95inhabitant).

• 2021: 5,5 (65,95inhabitant).

• 2022: 5,7 (68,35inhabitant).

• 2023: 5,8 (69,54inhabitant).

• 2024: 6,0 (71,94inhabitant).

Theoperationalbudgetincreasedfrom 5,5 to 6,0 between2020and2024.Theincreaseoccurredgraduallypost-crisis,risingfrom68,35inhabitantto71,94inhabitant. GermanyallocatesmoreresourcestoemploymentthanFrance,butexpendituresarecontrolled,asseeninbudgetmovements.Thelargestincreaseis 2,4 comparedto 4,39 forFrance(2.3).Yearafteryear,theagencymanagesexpenses precisely.

5.4EvolutionoftheOperationalBudgetRelativetoGDP(20202024)

TheBA’soperationalbudgethasremainedstableasashareofGDP,withaslight increasein2020duetotheCovidcrisis:

• 2020: 5,5 (0,16%ofGDP,GDP= 3400).

• 2021: 5,5 (0,15%ofGDP,GDP= 3600).

• 2022: 5,7 (0,15%ofGDP,GDP= 3850).

• 2023: 5,8 (0,14%ofGDP,GDP= 4050).

• 2024: 6,0 (0,14%ofGDP,GDP= 4200).

Thestability(0,14-0,16%)demonstratesresilienceinoperationalspendingdespitetheeconomiccontractionin2020.Theslightincreasein2024reflectsinvestmentsintraining.However,thereisadecreaseintheGDPshare,saving0,02 percentagepointsbetween2020and2024.

6.1GeneralOverview

TheServicioPúblicodeEmpleoEstatal(SEPE)managesunemploymentinsuranceandemploymentservicesinSpain,incollaborationwithautonomousregions.Itstotalbudgetfor2024isestimatedatapproximately 20,ofwhich 3,0 is foroperationalexpenses,fundedbysocialcontributionsandtheState.

6.2BreakdownoftheOperationalBudget

• Salaries: 0,75 to 0,9 (25-30%),forapproximately20,000agents,withanaverage netsalaryof 2100month (nationalmediansalary: 1800month,INE2024;average unemploymentrate2024:11,3%,INE).

• Training: 0,9 to 1,05 (30-35%),fortrainingandinsertionprograms.National educationbudget2024: 60 (4,1%ofGDP,GDP= 1450,source:INE,Ministerio deEducación).

• Operations: 0,6 to 0,75 (20-25%),foragenciesanddigitaltools.

• Others: 0,3 to 0,45 (10-15%),forpartnershipsandmiscellaneousexpenses.

Intermsofbudgetallocation,trainingisprioritized(30-35%).Salariesaresignificantlylowerthantheaverageacrossthestudiedcountries(2100month comparedto 4550month fortheUSA,4.2).

6.3EvolutionoftheOperationalBudget(2020-2024)

• 2020: 2,8 (59,07inhabitant).

• 2021: 2,7 (56,96inhabitant).

• 2022: 2,8 (59,07inhabitant).

• 2023: 2,9 (61,18inhabitant).

• 2024: 3,0 (63,29inhabitant).

Theoperationalbudgetsawaslightincreaseof 0,2 between2020and2024.The increaseoccurredgraduallypost-crisis,risingfrom59,07inhabitantto63,29inhabitant. Thebudgetappearswell-controlledinvalue.

6.4EvolutionoftheOperationalBudgetRelativetoGDP(20202024)

TheSEPE’soperationalbudgetslightlyincreasedasashareofGDPin2020in responsetotheCovidcrisis:

• 2020: 2,8 (0,25%ofGDP,GDP= 1100).

• 2021: 2,7 (0,23%ofGDP,GDP= 1200).

• 2022: 2,8 (0,22%ofGDP,GDP= 1300).

• 2023: 2,9 (0,21%ofGDP,GDP= 1400).

• 2024: 3,0 (0,21%ofGDP,GDP= 1450).

TheGDPsharedecreasedafter2020,reflectingeconomicrecoveryandarelative reductioninoperationalspendingpost-crisis.Theincreasein2024islinkedto inflationandlabormarketreforms.TheSpanishemploymentservice’sbudget iswell-managed.

7ComparisonofBudgets(2024)

Table1:ComparisonofOperationalBudgetsin 2024

Salaries(B€) 1,26-1,681,47-1,960,765-1,021,8-2,10,75-0,9 SalariesperCapita(€) 18,42-24,5621,75-29,002,24-2,9821,58-25,1815,82-18,99 Training(%) 30-40 20-30 20-25 25-30 30-35

Training(B€) 1,26-1,680,98-1,471,02-1,2751,5-1,80,9-1,05

TrainingperCapita(€) 18,42-24,5614,50-21,752,98-3,7317,99-21,5818,99-22,15

OperationsperCapita(€) 12,28-15,3514,50-18,121,49-2,2414,39-17,9912,66-15,82

Others(%) 5-10 5-10 10-15 10-15 10-15

Others(B€) 0,21-0,420,245-0,490,51-0,7650,6-0,90,3-0,45

OthersperCapita(€) 3,07-6,143,62-7,251,49-2,247,19-10,796,33-9,49

8.1CommentaryontheEvolution

Over1year(2023-2024):Between2023and2024,operationalbudgetsincreased inallcountries,reflectingtheimpactofinflationandinvestmentsindigitalizationandemploymentprograms.Franceshowsanincreaseof 0,2 (+5%),the UnitedKingdom 0,22 (+4,7%),theUnitedStates 0,1 (+2%),Germany 0,2 (+3,4%), andSpain 0,1 (+3,4%).Theseincreasesaremoderate,buttheUnitedKingdom andGermanystandoutwithhighpercapitabudgets(72,49 and 71,94,respectively,in2024).

Overtheentireperiod(2020-2024):From2020to2024,budgetsgenerallyincreased,exceptintheUnitedStates,whichsawatemporarydecreasein2022 (4,55)duetotheendofpost-Covidemergencyprograms.Germanyshowsthe strongestgrowth(+9,1%,from 5,5 to 6,0),followedbytheUnitedKingdom(+19,5 %,from 4,1 to 4,9),France(+20%,from 3,5 to 4,2),Spain(+7,1%,from 2,8 to 3,0), andtheUnitedStates(-7,3%,from 5,5 to 5,1).Thedifferencesreflectnational priorities,withstrongcentralizationinGermanyandtheUnitedKingdom,and decentralizedsystemsintheUnitedStatesandSpain.

RegardingFrancecomparedtoitscounterparts:Contrarytoexpectations, Franceisslightlybelowtheaverageofthestudiedcountriesintermsofoperationalbudget(4,2 vs. 4,6).However,intermsoftraining,FranceTravailallocates ahigherpercentagethanitscounterparts.Thisislessvalued,asitrankssecond toGermanyinvalue(atthehighend, 1,68 vs. 1,8).Operationalexpensesaresimilartoothercountries.Thenumberofagentsperinhabitantisthethirdhighest aftertheUnitedKingdomandGermany(731vs.1183and1199).

Figure1:

9Conclusion

Ouranalysisrevealedsignificantdisparitiesintheoperationalbudgetsofemploymentagencies.GermanyandtheUnitedKingdomallocatethehighestper capitabudgets(71,94 and 72,49 in2024),reflectingcentralizedsystemsandhigh agentdensity(1199and1183permillioninhabitants).FranceandSpainhave comparablepercapitabudgets(61,40 and 63,29),whiletheUnitedStateshasa muchlowerpercapitabudget(14,92)duetoitslargepopulationanddecentralizedsystem.Averagenetsalariesvarysignificantly,withtheUnitedStatesleading(4550month)andSpainatthebottom(2100month).Over2020-2024,budgets generallyincreased,drivenbyinflationandinvestmentsintraininganddigitalization,althoughtheUnitedStatesexperiencedatemporarypost-Coviddecline. TheGDPanalysisshowsthatoperationalbudgetsremainstableasashareof GDP,withincreasesin2020toaddresstheCovidcrisis.

GermanyandSpainprioritizedbudgetmanagement,whileFranceadopteda centralizedbudgetapproach.However,theUnitedStatesstandsout,asdespite alargerpopulation,itprioritizedmaximumefficiencyinitsmodel.

ToenhanceFranceTravail’sefficiency,thedecentralizationmodelimplemented bytheUnitedStatesappearstobeaneffectivewaytoallocateresourcesmore precisely.Additionally,linkingeducationoutcomeswithtrainingwouldraise awarenessoftheissuesearlyinthesystemandadaptinitialtrainingtoavoid penaltiesduetotrainingdeficiencies.Educationandtrainingmustbealignedto achievethebestlabormarketoutcomes.

ComparisonofEmploymentAgencies:France,UK,USA,Germany,Spain

10Limitations

• Theoperationalandtotalbudgetsfor2024areestimatesduetothelackof comprehensiveofficialreports.

• Structuraldifferences(centralizationinFrance,UK,Germanyvs.decentralizationintheUSA,Spain)complicatedirectcomparisons.

• Salaryandagentnumberdataarebasedonnationalaveragesandmayvary byregionorrole.

• Populationsusedare:France(68,4M),UnitedKingdom(67,6M),UnitedStates (341,8M),Germany(83,4M),Spain(47,4M).

• Exchangerates(1GBP=1,17EUR,1USD=0,91EUR,2024averages)mayintroducevariationsinconversions.

• GDPandeducationbudgetestimatesarebasedoninternationalsourcesand mayvaryslightlydependingonmethodologies.

• Efficiencymeasures,particularlyregardingemploymentandunemployment rates,werenotexamined.

ComparisonofEmploymentAgencies:France,UK,USA,Germany,Spain

11Sources

• Béduneau,L.(2025).ReportNo.2025-001.ComparisonofEmploymentAgency Budgets:France,UnitedKingdom,UnitedStates,Germany,Spain.Availableat: https://issuu.com/louisbeduneau/docs/france_travail_co_te_t-il_ trop_cher_.

• FranceTravail:PôleEmploiannualreports(2020-2023),Insee(mediansalaries, unemploymentrates,GDP,educationbudget,2023-2024),governmentannouncementsonFranceTravail,PFL2024.

• JobcentrePlus(UnitedKingdom):DepartmentforWorkandPensionsreports (2020-2024),OfficeforNationalStatistics(mediansalaries,unemploymentrates, GDP,educationbudget,2024),SpringBudget2024.

• ETA(UnitedStates):DepartmentofLaborreports(2020-2024),BureauofLabor Statistics(mediansalaries,unemploymentrates,GDP,educationbudget,2024), federalbudget2023-2024.

• BundesagenturfürArbeit(Germany):BAannualreports(2020-2023),Eurostat (salaries,GDP,2023),Destatis(mediansalaries,unemploymentrates,GDP,educationbudget,2024),estimatesbasedonGermaninflation.

• SEPE(Spain):MinisteriodeTrabajoyEconomíaSocialreports(2020-2023),InstitutoNacionaldeEstadística(population,mediansalaries,unemployment rates,GDP,2023),MinisteriodeEducación(educationbudget,2024),estimates for2024.

• GDP:WorldBank,IMF(estimates2020-2024),Insee,ONS,BLS,Destatis,INE.

ComparisonofEmploymentAgencies:France,UK,USA,Germany,Spain

12Annexes

12.1BudgetEvolutionTable(2020-2024)

Table2:EvolutionofOperationalBudgets(20202024)

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