Strengthening active labour market policies in Italy.

Description

Foreword Acronyms and abbreviations Executive Summary Assessment and Recommendations The Italian labour market is witnessing a mild recovery Some groups are still disadvantaged Under-skilling and labour market mismatch hinder economic growth Spending on active labour market policies is low Spending on active labour market programmes is not well directed Labour market policies rely heavily on subsidising employment relationships Training provision does not address the widespread lack of skills among adults Public employment services have low credibility as job brokers An important labour market reform was introduced in recent years Labour market duality remains a significant problem in Italy Unemployment benefit schemes have so far been fragmented and benefit few Somewhat less fragmentation of the system since Jobs Act and creation of ANPAL ANPAL’s role needs to be strengthened further Efforts should be made to strengthen co-operation The mechanisms to improve the quality of active labour market policies provided by the Jobs Act have not yet been put into practice Benefit conditionality is in its infancy Contracting employment services out to private providers could be a good solution for the under-resourced public system The results of piloting the reintegration voucher seem rather poor A common IT infrastructure is the backbone of the new network of employment services, but efforts to build it are still inadequate The staff in the local employment offices are ill-equipped to deliver modern employment services National profiling tools have the potential to target active policies more effectively when they are fully developed and implemented The national profiling tool should be fully developed and integrated into the business model Profiling of skills is needed to assess training needs and help job matching The labour demand side has been neglected Building employers’ trust in the system of employment services An effective system of public employment services can promote labour mobility Note Chapter 1. Recent trends in the Italian Labour Market 1.1. Introduction 1.2. General trends in the labour market 1.2.1. Some signs of recovery in the Italian labour market 1.2.2. Female labour market participation is low despite recent improvements 1.2.3. No real recovery in youth labour market situation yet 1.2.4. Long-term unemployment is decreasing, but remains high 1.3. Skill and qualification mismatches in the Italian labour market 1.3.1. Upskilling is necessary throughout the country The skills of Italian adults are low by OECD comparison The skill mismatch is high 1.3.2. Rigid wages contribute to skill mismatch and low productivity 1.4. Regional differences 1.4.1. Regional disparities are vast and not profoundly decreasing 1.4.2. Labour mobility is limited 1.5. Italy’s resources for labour market policies 1.5.1. Italy spends relatively little on active labour market policies 1.5.2. The system of public employment services has low credibility as a job broker 1.5.3. Strengthening the relevance of ALMPs is of primary importance Employment incentives should be more targeted Upskilling through training programmes reaches only limited groups of jobseekers More emphasis on counselling jobseekers is necessary 1.6. Conclusion Notes References Database references Annex 1.A. Returns to tertiary education in Italy Annex 1.B. Expenditures on active labour market policies and the level of unemployment Annex 1.C. Active labour market services and measures according to the Jobs Act Annex 1.D. Expenditures on active labour market policies in Italy in 2015 Chapter 2. Reforming the institutional landscape 2.1. Introduction 2.2. Reforming the labour market 2.2.1. Objectives of the Jobs Act 2.2.2. Decreasing labour market duality and fostering employment 2.2.3. Introducing more equal and universal unemployment benefits Wage supplementation schemes dominate passive labour market policies Changes in the system of passive labour market policies 2.3. Strengthening the system of employment services 2.3.1. Restructuring the system and enhancing service quality Restructuring the system: some fragmentation will likely remain Setting minimum standards Enhancing quasi-market Linking passive with active measures: enforcing conditionality 2.3.2. The crucial role of the National Agency for Active Labour Market Policies ANPAL’s strategic view Co-ordination of the system of employment services remains a challenge 2.3.3. Building the IT infrastructure 2.3.4. Supporting the local employment offices The number of staff is modest The set-up of processes does not support efficient use of human resources, yet The qualification of staff is low undermining the potential for service quality CPI staff should be given the motivation and tools to contribute to the reform 2.4. Conclusions Notes References Database references Chapter 3. Approaches to deliver active policies in Italy 3.1. Introduction 3.2. Targeting active labour market policies to jobseekers using profiling tools 3.2.1. Regional profiling tools are not systematically used 3.2.2. The success of the national quantitative tools depends on the IT infrastructure 3.2.3. The new qualitative profiling tool complements the quantitative tools 3.2.4. A recent attempt to map jobseekers’ skills using the PIAAC online tool 3.3. Developing a quasi-market for service providers 3.3.1. The approaches towards co-operating with private service providers are mixed 3.3.2. Accreditation process of private service providers is fragmented 3.3.3. The reintegration voucher to outsource services needs some redesign 3.4. Employer outreach and demand-side services 3.4.1. The Jobs Act fails to address the services for employers 3.4.2. Regional outreach to employers is modest Basic services to employers are offered in most Regions Service package for employers is limited and of low quality The organisational structures for counsellors serving employers are in place, but the supporting structures are missing More interactive channels should be used to increase contacts with employers 3.4.3. A new national strategy for employers The new national strategy for employers is well developed The role of ANPAL could be strengthened Public employment services as information providers Public employment services as job brokers (matching and pre-selection) Public employment services as supporters of up-skilling 3.5. Conclusions Notes References Blank Page