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Italy – Labour reforms hurting temporary workers

24 June 2013

The OECD’s chief economist has advised Italy to make it is easier to hire young workers on temporary contracts by repealing parts of the labour reform adopted last year by former Prime Minister Mario Monti, , according to Reuters.

Chief Economist Pier Carlo Pardon said, “I would ease entry regulations by making it more convenient to hire on a temporary basis and with greater flexibility. I know this raises the objection of re-creating the dual labour market, but in this situation of extreme distress I think it is necessary.”

Eliminating the so-called ‘dual’ labour market, between protected older workers and young people with few labour rights, was at the heart of Mario Monti’s prolonged negotiations with trade unions last year. It succeeded in easing firing restrictions but limited the use of temporary contracts.

Unemployment sits at a record level of more than 40% for those under the age of 24.   

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