Italian research tots up cost of pandemic on employment

Despite government support for business and employment – including the Covid freeze on layoffs, which is a veritable ‘Damocles’ sword’ hanging over the post-pandemic recovery – jobs in Italy still shrank by 456,000 in 2020, representing a drop of 2% compared to 2019. Moreover, there are a staggering 711,000 who are inactive, namely people of employment age who were out of work last year and have stopped seeking a new job. A study by the socioeconomic research institute Censis has concluded that jobhunting last year – both for those who have lost their jobs and others wanting to enter the labour market for the first time – was discouraged because of an economic and social combination regarded as too complex and tough, forcing the out-of-work to postpone their search to better times. Apart from a few exceptions, the negative impact on the employment market has been felt in all fields of work. Businesses have opted to put planned recruitment on hold, or even a scheduled turnover owing to departing staff (the pensioning of workers or other individual decisions). The year of the Covid-19 virus has also remarkably impacted independent workers, with an overall drop of 158,000, comprising 59,000 self-employed and 38,000 freelance. The figures are part of a five-year trend (2015-2020) during which the fall in number of independent workers has touched the 500,000 mark, compared with an increase of 306,000 jobs in employment contracts during the same period. Not all categories have suffered the same fate in relation to job losses. The worst-hit have been the weaker sections of society: the 18-29 age bracket (-6.4%), women (-2.5%) and, topping it all, jobless foreigners among whom unemployment has surged by 15.3%. These are groups where independent working is more widespread, as are those holding occasional jobs or those working under fixed-term contracts. These are also workers particularly hit by the closure of the hotel industry and the related plunge in tourism, as well as enterprises operating in the service sector. Among foreigners, the numbers conceal a share of undeclared or ‘irregular’ work. A study by Censis reveals that there are more than a million households in Italy with family members having irregular jobs, and about 33% of these are foreigners. Another issue has had an adverse effect on the economic condition of the population during the pandemic. Among the employed, the fall in income has hit three families out of ten. Among those able to go on with their work during the pandemic, telecommuting and smart working have been the favourites. After the initial enthusiasm of being able to work from one’s own home-comfort zone without stepping outdoors, Italians are realising that the solution has its limits and tiredness is beginning to seep in. Remote working is now deemed to be a valid alternative during an emergency, not an improvement on a work experience. The Censis research highlights which are the greatest perceived risks associated with digital working. First and foremost, the absence of socialisation ensured by a direct and daily contact with colleagues (48.8%); second, being compelled to work in an inadequate environment regarding the availability of space and equipment (40.4%); third, the risk of having to work for more hours than expected and being no longer able to set a boundary between work and leisure (36.3%). These are problems that are exacerbated by associated utility bills (electric power, internet and other services) that a home-based workstation implies (29.7%). Last, but not least, over the long term, the research finds that the reduced number of opportunities relating to a professional career path and growth are also an important downside to home working (22.0%).