Labour Reform in Italy and its implications for Labour Administration

This paper is intended to present the highlights of the recent labour market reform in Italy, as proposed by the Monti Government in April 2012. The reform deals with the entire spectrum of topical issues concerning the modernization of the labour market in the country with a view to aligning the system to other European countries.

At the centre of the strategy, there is the introduction of elements balancing flexibility and security. In particular, there is a common sense that due to the economic crisis and the current recession of several economies in Europe, it is time to introduce elements of flexibility especially for what concerns the external labour market aspects. The reform is now in parliament for a final discussion and approval that should take place in the coming weeks/months. However, it is worth presenting in this very first document what are the main issues at stake and what they will represent for the future of the Italian labour administration.

The key issues addressed by the reform, as they have been explained by the Italian government, can be summarised as follows:

• Reducing segmentation in the labour market;

• A universal social safety;

• A flexible labour market for all;

• Active labour policies.