Observation (CEACR) - adopted 1995, published 83rd ILC session (1996)

Employment Policy Convention, 1964 (No. 122) - Italy (Ratification: 1971)

1. The Committee notes the Government's report for the period ending June 1994, which contains useful and detailed information on changes in the active population, employment and unemployment, as well as the employment policies pursued. The Government states that the severe recession experienced by the national economy in 1993 resulted in the loss of some 700,000 jobs and an increase in the unemployment rate, which was above 11 per cent at the end of the period, compared with 9.7 per cent in October 1992. Due largely to terminations of employment for economic reasons, the rise in unemployment was more accentuated in the south of the country, which further aggravated the regional difference in the employment situation: the unemployment rate in the south is now over ten points higher than the rates in the centre and north. Over 30 per cent of young persons under 25 years of age are unemployed, while long-term unemployment accounts for nearly 60 per cent of total unemployment. The Government emphasizes that this high level of unemployment, with distributional characteristics that give grounds for concern, is combined with other structural weaknesses affecting the Italian labour market. These include an activity rate which is too low and declined still further due to the withdrawal of persons who were discouraged from trying to find their first job or another job, an excessive proportion of self-employment, a large measure of moonlighting, an insufficient level of skills in the workforce and the prevalence of skills which are not adapted to current requirements.

2. The Government states that by subscribing to the obligations of the 1992 Treaty of the European Union and undertaking to meet the economic convergence criteria set out in that treaty, it has agreed to deny itself the use of the traditional instruments for re-establishing the macroeconomic situation, such as the exchange rate, inflation and the public debt, with the result that the principal burden of adjustment now rests on the labour market. It recognizes in this respect that taking the national currency out of the European exchange rate mechanism and its depreciation, although they were imposed by the financial markets rather than sought by the Government, contributed to attenuating the scale of the recession. In this context and under these constraints, the Government describes the principal objectives of its employment policy, as set out in 1994 in the White Paper "Employment objectives" issued by the Ministry of Labour, which are to promote growth that creates more jobs, render the labour market more flexible and reinforce training activities. It welcomes the conclusion of the agreements of July 1993 on incomes policy, collective bargaining, employment policies and support for productive activities, in which the social partners agreed on common objectives relating to the reduction of the public deficit, the containment of inflation and the promotion of employment, as well as establishing a dual level wage negotiation system, with a view to moderating wage increases. The Committee requests the Government to continue providing information on the measures which have been taken to promote productive activities and employment, in the framework of a coordinated economic and social policy and in consultation with the representatives of all the persons affected.

3. The Committee notes the new provisions implementing employment measures for the regions affected by the crisis. It notes the establishment in this context of an Employment Fund to finance incentives for the maintenance and creation of jobs. The Committee also notes the indications concerning the new functions of promotion, information, assistance and selection for which local employment offices are now responsible. With reference to its previous observation, it notes that the trend for the conclusion of fewer employment-training contracts has been confirmed, but that access to the training and placement system has been extended to young persons under 32 years of age. The Committee requests the Government to continue providing information on the nature and extent of the various labour market policy measures that have been implemented, and to transmit any available evaluation of their effectiveness in terms of the placement of the persons concerned in employment.