GIOVENTU » Youth unemployment hits 39% in Italy
Youth unemployment hits 39% in Italy
Italy's Constitutional Court rejected a bid by the country's biggest trade union, CGIL to call for a referendum on former prime minister Matteo Renzi's “Jobs act” which made it easier to fire workers. The judges did however approve two other referendums proposed by CGIL, regarding the use of vouchers to pay workers who have no contract and on extending the rights of people working on projects assigned by tender processes.
Work vouchers give workers no rights to sick pay, holidays or leave. They were introduced as an experiment in 2008, but their use reached 70 percent in 2015. The voucher scheme is now out of control and action must be taken to curb its use.
Renzi hoped making dismissals easier would have encouraged firms to hire, but the unemployment rate rose in November to its highest since June 2015, shortly after the measures began to be applied and youth unemployment in Italy skyrocketed to 39%. Italy has one of the highest jobless rates in the euro zone and almost 40 percent of the population aged between 15 and 24 are unemployed. There are more than 600,000 young people unemployed in Italy.
Italian banks such as Monte dei Paschi di Siena and UniCredit are also in difficulty and thousands of jobs might soon be at risk. The airline Alitalia is discussing the potential of as many as 1,600 job cuts. Furthermore, Ericsson AB may cut a quarter of its local workforce amounting to 1,000 jobs due to the loss of a contract to manage Italy's largest wireless network.
According to Istat's estimates of the penultimate month of 2016, the employment rate in the age group between 15 and 24 years has dropped, while that of inactivity - which also includes people engaged in studies - fell by 0.6 points.
On the whole, the rate of unemployment has increased from 11.7 to 11.9% Monthly and increased by 0, 5% from November 2015. the jobless rate rose to 3,089,000, an increase of 57 thousand units compared to October 2015 and 165 compared to November 2015. At the same time the employed increased by 19 thousand units and the employment rate was equal to 57.3%, up 0.1 points compared to October. The apparent contradiction comes from the decline of the inactive (ie people who stopped looking for work because they were discouraged). In November, the inactivity rate has stabilized at historically low levels, 34.8%. The inactive people between 15 and 64 years of age decreased by 93 thousand units compared to October 2015 and by 469mila compared to November 2015.