The International Monetary Fund (IMF) has issued a report pointing out that Italy is in need of radical economic reforms in its labor market based on major economic indicators, Press TV reports.
The world body has urged Rome to implement revisions in its labor market law in a bid to generate new employment opportunities.
The development comes as the nation’s unemployment rate stands at 12.6 percent, the highest level since the World War II, and is projected to remain above 10 percent at least until the year 2017.
Although official statistics indicate that the unemployment rate in Italy stands at over 12 percent, labor market experts insist that the situation is much more alarming.
Italy's inactivity rate among those aged between 15 and 64 years has recently been recorded at nearly 40 percent. "Inactivity, defined as an unemployed not looking for work, is a structural problem in the Italian society. Relying on official unemployment rate...is [just] misleading,” said Mariano Bella with Confcommercio, adding, “The issue is that our economy continues to contract and unfortunately latest forecast shows that it won’t grow enough next year.”
This is while the country's largest industrial employers' association, Confindustria, and the Organization for Economic Cooperation and Development (OECD) both forecast the Italian economy will shrink by 0.4 percent this year.
Even though the IMF predicts the economy in Italy will grow by 1.1 percent in 2015, the OECD’s forecast shows that the Italian economy will barely recover within the next year, growing only by 0.1 percent.
No comments:
Post a Comment