470 thousand employees lost in 9 months

The health emergency and the consequent suspension of the activities of entire productive sectors represented, even in our country “a sudden and unprecedented shock on the production of goods and services and, consequently, on the labor market”. On average in the first three quarters of 2020, employed persons decreased by 470 thousand units (-2% compared to the same period of the previous year), returning just above the levels of 2016. At the same time, there was a decrease of 304 thousand unemployed and a marked increase of inactive between 15 and 64 years (+621 thousand). This is the photograph taken by the Ministry of Labor, Istat, Inps, Inail and Anpal in the 2020 Labor Market Report.

This corresponds to decreases in the employment rate and unemployment rate (-1.0 and -0.9 percentage points respectively in one year) and an increase in the inactivity rate (+1.8 points).

The sharp decline in the number of employed and unemployed is mainly due to the situation created in the second quarter (-841,000 employed and -647,000 unemployed in one year), when the exceptional restrictive measures to combat the pandemic had a negative impact on both the new jobs and the continuation of those expiring and on the active search for work. The easing of these measures in the third quarter led to a reactivation of a share of the unemployed, with an increase in the number of people looking for work (+202 thousand), despite the still intense decline in employment (-622 thousand ).

For women, the fall in the employment rate is double

The most vulnerable categories in the labor market suffered the most from the crisis: the fall in the employment rate was almost double among women compared to men (-1.3 against -0.7 percentage points) and stronger for under 35s (-1.8 points against -0.8 for 35-49 year-olds and -0.3 points for over 50s) and for foreigners, for whom the value of the indicator falls below that of Italians.

The drop in employment was driven by fixed-term work (-394 thousand, -12.9% on average for the first three quarters) and self-employed work (-162 thousand, -3%), while permanent employment is a slight increase (+86 thousand, + 0.6%). The worst trends are found in the hotel and restaurant sector and in domestic services (predominantly female), among those employed in trade and services and among unskilled professions. The stability in the construction, information and communication sectors and industry in the strict sense accounts for the lower impact of the crisis on the male component.

In the first six months of 2020, 436 thousand fewer people who started a job than in the same period of 2019 (-30.2%) while 490 thousand more people finished a job in the same period (+62.2 %).

The exceptional growth in inactivity, on average for the first three quarters of 2020, is due to the lack of conditions to be classified as unemployed during the period of the health crisis. This has led to an increase in the potential workforce (+220 thousand, + 7.3%) and above all of those who have neither looked for work nor would have been available to start a business (+402 thousand, + 3.9%) .

In the second quarter over 4 million work remotely

Rome, Feb 25 – The health emergency has also produced a sudden and radical change in the way in which work is provided, with an increase in remote work. In the second quarter of 2020, work from home affected over 4 million workers, 19.4% of the total (it was 4.6% in the second quarter of 2019).

Digitization and social distancing “have contributed to producing a new segmentation in the labor market, distinguishing between those who can work from home and those who, due to the nature of the service, are closely linked to the workplace”.

The use of smart working immediately affected 21.3% of companies with at least 3 employees after the outbreak of the pandemic; the percentage dropped to 11.3% in the period from June to November. The share of smart working workers in the companies that have activated it rises from 5% in the period prior to Covid-19, to 47% in the March-April lockdown months, to settle at around 30% from May onwards.

Source: RSS DiariodelWeb.it Economia by www.diariodelweb.it.

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