At the onset of the current economic and financial crisis, the Bank of Italy warned that as many as 1.6 million workers would not be entitled to any unemployment benefits in the event they lost their job; the coverage, for the remaining workers, would vary between 1 and 22 months depending on a number of items, such as the kind of working arrangement, sector affiliation, firm size, seniority at the specific firm. This segmentation reflected the countless marginal interventions on the system over the past years and, beyond being unfair, could slow down mobility of workers and generate significant inefficiencies

Active labour policies

The unemployed will also receive more advice and help to ensure their quick return to the labour market, as part of a policy that protect individuals as opposed to the job held at any point in their working lives.

The reform in particular helps young people acquire the skills necessary for them to enter the market. Those, young or more senior, who lose their job will also get help to get back into work rapidly, as part of active labour policies being put into place. This is a task for the State and the Regions altogether.

Besides the better qualification for young people, the policies involve life-long learning and training; a better evaluation of companies’ work needs; improved matching of offer and demand and other active policies.

To finance such policies the State and the Regions will make a more efficient use of available resources as well as of European funds, which are being re-directed to promote job creation and more efficient working labour markets.

For more information on the reform see the website of the Prime Minister’s office and that of the Labour Ministry.