The Technical Committee* in charge of monitoring the labor market reform (Act No. 92/2012, see article No. 120471) published its first report on January 23, covering the period between July 2012 and June 2013. It describes the key changes that affected labor law in the first year of application of the reform while acknowledging that it is “extremely difficult” to assess its real impact in a context that is still highly characterized by the recession’s negative impact on employment. Therefore, the effect that can be directly linked with the reform is the reduction of precarious contracts, as it amended their regulation to limit abuses.
“Small” recovery signs. Employment variations have been slightly negative since 2011, reaching -1.8 percent in the first half of 2013. In the second 2013 quarter, the number of jobseekers exceeded 3 million, i.e. the highest number since 1992, taking the unemployment rate up to 12 percent (27.7 percent for the 18-29 age group). However, the number of full-time hours worked have slightly increased which is, in connection with the relative steadiness of Cassa Integrazione hours over the same period, the “first sign of labor demand turning, at least in the manufacturing sector, a sign confirmed in the third quarter,” according to the report.
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