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Strengthening Active Labour Market Policies in Italy

image of Strengthening Active Labour Market Policies in Italy

This report on Italy is the sixth country study published in a series of reports looking into how policies connect people with jobs. It discusses how active labour market policies in Italy are performing both on the national and the regional level, focussing particularly on the reform process in the system of public employment services initiated by the Jobs Act. The ongoing reform has good potential to improve the performance of employment services in Italy, particularly if the stakeholders of the system cooperate to establish a binding performance management framework and develop national IT infrastructure supporting the tasks of the local offices to serve jobseekers and employers. The National Agency for Active Labour Market Policies has a key role in encouraging the cooperation between the stakeholders, leading the development of new tools and methodologies and thus supporting the local employment offices to implement the new service model. Besides the general reform process, the review looks at some specific approaches regarding providing employment services in Italy – using jobseeker profiling tools to target active labour market policies; increasing quality and capacity of employment services by contracting out employment services to private service providers; and reaching out to employers and advancing demand-side services.

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Recent trends in the Italian Labour Market

This chapter provides an overview of the recent developments in the Italian labour market and discusses the main challenges. The Italian economy and labour market have started to recover from the Great Recession in the past few years. However, youth and long-term unemployment remain high and there is space to increase female labour force participation. The qualification and skill level of the labour force are low and the resulting mismatches contribute to the low and declining productivity. Although many of these challenges apply across the country, regional disparities are vast and persistent. Resources devoted to labour market policies are insufficient and not well allocated or targeted to address the difficult labour market situation.

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