June 10, 2016 – L’Unità published an editorial by SEP Senior Fellow Pietro Reichlin, in which he discusses recent employment data and the Jobs Act. Since the first trimester of 2015, Italy has seen a 242,000 unit increase in jobs. Unemployment at around this time last year was 13%, and now it is 12.1%. He argues that, despite weak economic growth (1.%), employment in Italy is steadily improving. ISTAT data shows that this growth in employment coincides with a significant decrease in the cost of labor (-1.5%, year-on-year), which is mainly attributable to a reduction in benefits, rather than average salaries (which decreased by only 0.1%). This means that the government was able to lighten the fiscal pressure weighing down the labor market. The next step would be to continue these measures, making the reduction in fiscal pressure more consistent and structural. The decrease in youth employment and employment growth in general shows that the reform of onboarding and dismissal procedures is going in the right direction.
- The original article (in Italian) is available from L’Unità.