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Renzi says job creation improving, but not yet enough

Renzi says job creation improving, but not yet enough

Codacons warns Italian economy still in doldrums

Rome, 02 March 2015, 20:33

ANSA Editorial

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Renzi says more job creation needed - ALL RIGHTS RESERVED

Renzi says more job creation needed -     ALL RIGHTS RESERVED
Renzi says more job creation needed - ALL RIGHTS RESERVED

While Premier Matteo Renzi on Monday cheered new figures showing an improvement in Italy's employment scene, he joined other critics in warning that it is not yet sufficient.
    Renzi said he was pleased that new data showed 130,000 jobs were added in 2014 but his government has more to do - something echoed by opposition politicians and consumer protection group Codacons.
    They warned that other elements in Monday's data, including rising government debt and tax levels, gave Italians nothing to cheer about.
    On the encouraging side, national statistical agency Istat confirmed that in January, the jobless rate fell to 12.6% from a revised rate of 12.7% in December 2014.
    "This is good but not enough," the premier tweeted as he outlined next priorities for his government. "Now moving on to measure for schools and ultra wide band".
    Labour Minister Giuliano Poletti added that as many as 150,000 new jobs could be created this year, he said.
    "All the think tanks project 100,000 new jobs this year," Poletti said.
    "I am confident we can do somewhat better and I hope that the 150,000 number will be in the ball park".
    Istat said that as the jobless rate fell for the second straight month in January, it returned to the same level it was in January 2014 - 12.6%.
    The jobs picture also improved slightly for young Italians aged 15 to 24 as their unemployment rate fell to 41.2% in January from 41.4% in December.
    That is the lowest rate for youth since August 2013 when the jobless figure was 40.8%.
    Renzi's government is hoping a series of structural reforms will boost the downward trend.
    Notably, it recently passed a labour-market reform making hiring and firing easier.
    Still, the overall economic picture is "devastating," said Senator Luciano Uras of the Left Ecology Freedom (SEL) party.
    "Enough with the useless propaganda," he said, noting that the numbers show that southern Italy is consistently worse off than the rest of the country.
    While more recent data showed improvements, Istat noted that last year, total unemployment rose to an average of 12.7%, up from 12.1% in 2013 and the highest rate since 1977.
    As well, 2014 saw a jump in the number of part-time workers to four million, a trend particularly marked in the final three months of 2014 when the rate jumped by 3.2%.
    Analysts say that part-time work tends to be more precarious and is often not taken by choice but is instead a substitute for workers who cannot find full-time work.
    While the employment picture remains dark, consumers are also struggling with debt and high taxes, said consumer group Codacons.
    Istat figures showed debt as a percentage of gross domestic product (GDP) remains a serious problem. "The economic recovery in Italy is not more than a chimera," Codacons said.
    According to Istat, the tax burden rose to 43.5% of GDP last year, up 0.1% over 2013.
    However, the finance ministry later challenged those numbers, saying Istat did not count an 80 euro monthly tax bonus as a tax reduction that would mean the overall burden actually fell last year to 43.1% from 43.4% in 2013. Meanwhile, Italy's deficit-to-GDP ratio rose to 3% last year from 2.9% in 2013, Istat said.
    Accumulated debt rose from 128.5% of GDP in 2013 to 132.1% of GDP in 2014, the highest ratio since 1995, according to the agency.
   

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