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

Other comments on C122

Observation

Direct Request

2023
2017
2009

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Articles 1 and 2 of the Convention. Active employment policies and programmes. Measures to alleviate the impact of the COVID-19 pandemic. The Committee notes with interest the detailed information, including disaggregated statistical data and legislation, provided in the Government’s 2019, 2020 and 2023 reports. The Committee notes the Government’s indication in its 2023 report that it is committed to implementing an active employment policy that is inclusive and efficient, and which aims to encourage active engagement in the world of work, promote vocational and professional training and increase employment. The Government adds that it has taken a series of measures to create new employment opportunities and promote access to employment, with a particular focus on specific groups, such as young persons, women, older workers and persons with disabilities. With respect to the COVID-19 pandemic, the Government reports on measures adopted in response to the impact of the pandemic, including the introduction of a relocation allowance granted to beneficiaries of the Basic Income benefit under section 9 of Legislative Decree No. 4/2019, a New Skills Fund established by the National Agency for Active Labour Market Policies (ANPAL) under section 88(1) of Legislative Decree No. 34 of 19 May 2020, as well as measures supporting the recruitment of health staff under section 83 of Legislative Decree No. 34 of 19 May 2020. In this context, the Committee notes that Italy is implementing an ambitious Recovery and Resilience Plan (PNRR) from 2016 to 2022, financed by the European Union. The Government reports that the PNRR represents a unique opportunity for development, investment and reform. Its principal objective is to place the country back on the path to sustainable and lasting economic growth and recovery from the socio-economic impacts of the COVID-19 pandemic. The investment programmes set out in the PNRR are built around six objectives (referred to as “missions”). In the specific context of active policy reforms, the Government highlights the importance of mission 5 on inclusion and cohesion to achieving the PNRR’s cross-cutting objectives of increasing employment opportunities for young persons, supporting women’s empowerment and reducing gender-based discrimination and achieving better balance between regions. Employment-related measures under mission 5 include: reforming the active employment and training policies currently regulated by the National Employability Guarantee Program (GOL), reforming the national plan to combat undeclared work (lavoro sommerso), investing in optimisation of employment centres (CPIs) and investing in the dual training system. The Committee notes the Government’s indication that the GOL programme is expected to reach at least 3 million beneficiaries by 2025, of which 75 per cent are expected to be women, long-term unemployed persons, persons with disabilities, young persons under 30 and workers over the age of 55. In addition, 800,000 of the beneficiaries are to be engaged in training activities, of which 300,000 will receive training to strengthen their digital skills. The GOL programme also proposes a new service model for CPIs based on a personalized approach that takes into account users’ needs and includes services related to: return to work, upskilling, reskilling, and employment services aimed at users with complex needs. Taking note of the above, the Committee notes that employment policies are much more effective designed and implemented duly taking into account the mutual relationships and need for coordination between employment objectives and other economic and social objectives and policies. In this respect, effective coordination between employment policy and social protection policy represents a strong driver for the successful designing and implementation of effective active labour market strategies and measures. The Committee also wishes to emphasize in this respect that the success of activation policies aimed at supporting employment, as well as that of social protection measures more generally, is also the result of effective strategies that tailor policy interventions to employment barriers and to individual circumstances. In this respect, while focusing on groups that are generally considered disadvantaged or those with greater difficulties to engage in the labour market, such as young persons, the long-term unemployed, women or persons with disabilities, these measures also require fine-tuning as these groups are not necessarily homogeneous and often comprised of subgroups with a wide variety and combination of employment barriers – certain measures may effectively reach the ambitioned objectives for certain members of the subgroup but be largely ineffective for other large segments which require a longer-term approach to addressing employment barriers with greater emphasis on active labour market measures. Identifying and having a more refined vision and understanding of the combinations of barriers faced by each of these subgroups also allows better crafting effective measures to successfully address the root-causes of unemployment and underemployment and achieving through an integrated employment policy the objectives pursued by the Convention, including in terms of stimulating economic growth and development, and raising levels of living. With reference to the above, the Committee requests the Government to provide updated detailed information, including statistics disaggregated by sex, age and region, on the nature, scope and impact of the reforms and the active labour market policies, programmes and measures implemented to promote full, productive and freely chosen employment. The Committee requests the Government to communicate updated information with respect to the achievement of the targets set for the implementation of the active employment and training policies adopted, including those measures targeting groups in vulnerable situations, in particular those in regions with higher rates of poverty and unemployment. The Committee also requests the Government to provide information on the nature, scope and impact of the measures adopted and implemented to combat undeclared work.

Labour market trends. The Committee notes the data available from the Italian National Statistics Office (ISTAT), which reflects severe impacts on national employment and unemployment rates between 2019 and 2021 due to the impact of the COVID-19 pandemic. It nevertheless notes that, according to the 2023 European Commission Country Report on Italy (the 2023 country report), the demand for labour increased between 2021 and 2022, with activity rates returning to 2019 levels. In 2022, the national employment rate reached 64.8 per cent, but remained significantly below the EU average of 74.6 per cent. In the same year, the overall unemployment rate declined to 8.1 per cent, one of the highest in the EU (the unemployment rate for women (9.3 per cent) was higher than that of men (7.1 per cent). Data available from the ILO Department of Statistics (ILOSTAT) indicates that the overall unemployment rate for young persons aged 15–24 in 2022 was 23.7 per cent – almost three times the unemployment rate for persons aged 15–64 during the same period. The unemployment rate for young women (25.8 per cent) was higher than that for young men (22.3 per cent). The 2023 country report notes that, while the unemployment rate of young persons aged 15–24 is falling, at nearly 24 per cent, it remains one of the highest in the European Union. Moreover, the share of young people 15–29 who are not in employment, education or training (NEETs) declined to 19 per cent in 2022 but remains higher than the EU average of 11.7 per cent. The high prevalence of non-standard forms of work, especially among young persons, and undeclared work are continued challenges. Lastly, the 2023 country report refers to substantial differences between the northern and southern regions of the country in terms of employment and participation, suggesting that overcoming these long-standing challenges and improving active labour market policies would help Italy achieve its national employment rate target of 73 per cent by 2030. The Committee requests the Government to provide updated information, including statistical data disaggregated by age, sex and region, on employment and labour market trends, including information on employment, unemployment and visible underemployment.

Employment of young persons. The Committee notes the information provided by the Government on the Youth Guarantee programme, which had over 1,475,000 young persons registered as of as of 30 April 2019. The Government adds that over 633,000 young persons benefitted from active policy measures in 2019, with a national coverage rate of 57.2 per cent. The Government nevertheless refers to regional disparities, noting that coverage is lower for young people from the southern regions and the islands, and higher in the north and northwest regions. The Committee notes that extra-curricular internships are the most common active labour market measure (57.8 per cent of the total interventions), followed by the employment incentive (24.5 per cent). These incentives are made up of the youth employment incentive (9.1 per cent), the employment bonus (8.2 per cent), the super bonus (1.4 per cent) and as of January 2018, an incentive for employment of young persons not in employment, education or training (NEETs) (5.9 per cent). Additional interventions include training (12.6 per cent and support at work (2.9 per cent). Employment placement rates of young persons having completed one or more active policy interventions stood at 54 per cent as of 30 April 2019. The employment rates recorded in the northern regions are, however, some 20 percentage points higher than in the south and the island regions. In this respect, the Committee notes the incentives financed by the National Operational Program for Active Policy Systems for Employment as part of the youth guarantee, which provides incentives for employment in the South. The Committee also notes the information provided by the Government on the implementation of other initiatives, such as the Growing Entrepreneurs project, as well as the SELFIE Employment project, a revolving fund for self-employment and self-entrepreneurship. The Government also reports on the launch of a jobs incentive, I Work (Io Lavoro), which aims to encourage private employers to hire young workers aged 16–34, as well as workers 35 years of age or younger who have been unemployed for at least six months. Noting the gender and regional disparities mentioned above and referring to its comments on Articles 1 and 2 of the Convention, the Committee requests the Government to provide information on targeted measures taken or envisaged to promote the inclusion of young women in education, training and employment. The Government is also requested to provide information on measures taken or envisaged to promote access to employment for young persons belonging to disadvantaged groups and those vulnerable to intersectional discrimination. Finally, the Committee asks the Government to continue to provide detailed information, including statistics disaggregated by sex, age and region, on the nature, scope and impact of the measures taken to reduce youth unemployment.

Employment of women. The Committee notes the Government’s indication that the employment rate for women has been increasing slowly but steadily over the past years. The Government nevertheless notes that the gap between the employment rate of women and men aged 20–64 remains significant, with a 19.5 per cent gap in 2019. According to the 2023 European Commission Country Report on Italy, the employment gap between women and men remained significant in 2022 at 19.3 percentage points. The Government adds that the employment rate for women also varies significantly by region, noting that the employment rate for women 20 to 65 in the southern region is almost half of that in the northeast region of the country. The Government attributes this gap at least in part to the amount of time spent by women in unpaid domestic and caregiving tasks, on which they spend 2.5 times as much time as men. It adds that the need to reconcile family and professional responsibilities leads many more women (35 per cent) than men (nine per cent) to resort to part-time work. One-third of women aged 25–34 years of age in part time work are not seeking a full-time job, and of this percentage, 65 per cent requested reduced hours to enable them to care for their children or other dependent persons. Moreover, according to ILOSTAT, in 2022, less than one in four women (23 per cent) occupied senior and middle management positions. In this context, the Committee notes a series of measures taken by the Government to address gender disparities in the world of work. These include the adoption of a National Gender Equality Strategy (2021–2026), the adoption of Decree – Law No. 105 on 3 June 2022, on improving work-life balance for men and women workers, and the creation of a National Observatory for the integration of gender equality policies. With reference to its comments under Articles 1 and 2 above, the Committee observes that barriers to employment faced by women can vary significantly ranging from unpaid care responsibilities to a combination of barriers such as little or no attachment to the labour market, comparatively lower levels of education and difficulties linked to the employment situation by regions and lack of services in the region in which they reside. The Committee therefore requests the Government to continue to provide detailed updated information, including statistical data disaggregated by sex, age and region, on the nature, scope and impact of measures taken to improve the participation of women in the labour market, including in management and decision-making positions. It further requests the Government to supply updated information on progress made in reducing the gender employment gap between women and men of all ages, as well as on measures taken or envisaged to facilitate reconciliation between professional and family responsibilities for both women and men, including by providing adequate childcare facilities.

Employment of persons with disabilities. The Committee notes the information provided by the Government in response to its previous request concerning the application of the labour-cost subsidies introduced in 2016 aimed at encouraging employers to hire persons with disabilities. It further notes the Government’s indication that, with the objective of promoting the employment of persons with disabilities, on 11 March 2023, the Ministry of Labour and Social Policies adopted Ministerial Decree No. 43, which establishes Guidelines on Targeted Placement. The Committee also notes the establishment of a database in relation to the targeted placement of persons with disabilities. The Government is requested to continue to provide updated detailed information, including statistical data disaggregated by age, sex and region, with respect to the nature, scope and impact of measures taken to promote the employment of women and men with disabilities in the open labour market, including targeted placement measures, vocational and professional training and awareness-raising measures designed to disseminate information about the capabilities of persons with disabilities.

Education and training policies and programmes. The Committee notes the information provided by the Government concerning the National Plan for New Competencies (PNC), adopted by inter-ministerial decree of 14 December 2021. The PNC is incorporated into the PNRR and focuses on meeting the need for new skills required in the labour market, to reduce skills mismatches. The Committee notes that education and training policies and programmes in Italy in recent years have focused on the transition between school and work, through work-based learning programmes, apprenticeships, rotation between school and work, and higher-level vocational training. The NPRR invests in the dual system of vocational education and training and work- based learning launched in 2015, thereby contributing to the achievement of the PNC. The dual system is expected to benefit at least 135,000 participants by 2025, including young persons aged 15–25 and adults without secondary school degrees. The Government also refers to the National Programme on Youth, Women and Employment, which promotes youth employment through providing services such as vocational guidance, training, apprenticeships and entrepreneurship training. The Committee requests the Government to provide updated information on the nature, scope and impact of the education and training policies and programmes implemented, including the dual system, on securing decent and lasting employment for young persons, as well as for other groups vulnerable to decent work deficits and exclusion from the labour market.

Cooperatives. The Committee notes the information provided by the Government in relation to the scheme established by Law No. 49 of 27 February 1985 (the so-called Marcora law), subsequently amended by Law No. 57 of 2001, to support employment through the provision of credit to cooperatives. Section 1 of Law No. 49 provided for the establishment of Foncooper, a revolving fund for the promotion and development of cooperatives. Foncooper’s resources and management were subsequently devolved to the regions. The Committee notes that a new assistance scheme was established pursuant to Decree of the Ministry of Economic Development in 2014 (the so-called New Marcora law), which aims to promote the creation and development of small and medium-sized cooperatives. The financial resources allocated to implement this new scheme were increased pursuant to Law No. 232/2016 (the 2017 budget law). Subsequently, Law No. 205/2017 (the 2018 budget law) introduced innovations in the regulation of cooperatives, including in aspects linked to social lending, supervision and governance. The Committee notes that article 1, paragraph 936 of the 2018 budget law provides for the imposition of heavy sanctions aimed at combating the phenomenon of false cooperatives. The Committee requests the Government to provide detailed updated information on the impact of the measures taken to promote full, productive and lasting freely chosen employment through cooperatives. The Government is requested to provide information on the number of cooperatives benefiting from these measures, the number of jobs created as a result of the measures, and the type and outcome of any measures taken to address the phenomenon of false cooperatives.

Article 3. Consultation with the social partners and representatives of the persons affected by the measures to be taken. The Committee notes the information provided by the Government, which indicates that it places great importance on consultation with the social partners in developing employment policies, noting that consultations are held with the social partners at state, regional and local level prior to legislative or regulatory interventions in the social and economic fields. The Government adds that it convenes the most representative organisations of employers and workers at the national level on an annual basis, engaging in consultations with respect to the annual budget, through which resources aimed at employment and the promotion of small and medium-sized enterprises are allocated. The process aims to inform and consult the social partners regarding proposals and measures to be adopted as part of current labour market reforms. In addition, the social partners are engaged on an ongoing basis in the National Economy and Employment Council established under article 99 of the Italian Constitution. The Committee requests the Government to continue providing updated detailed information in its next reports on the manner in which representatives of the persons affected by the measures to be taken, and in particular representatives of employers and workers, are consulted concerning employment policies, with a view to taking fully into account their experience and views and securing their full co-operation in formulating and enlisting support for such policies. The Committee also requests the Government to provide full particulars on the nature, scope and outcome of consultations held with the social partners regarding the development and implementation of employment policies and programmes on the basis of regularly updated labour market data, including on the basis of trends in employment, unemployment and underemployment.