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EMPLOYMENT

‘Left behind’: Why are so many women unemployed in Italy – and what’s being done about it?

Italy has one of Europe's worst wage gaps between genders, and female unemployment has risen disproportionately during the pandemic.

'Left behind': Why are so many women unemployed in Italy - and what’s being done about it?
Demonstrations in Rome on International Women's Day on March 8, 2021 in Rome. (Photo: Filippo Monteforte/AFP

In Italy, the decline in female employment during the Covid emergency was double the EU average, with 402,000 jobs lost between April and September 2020.

Last December alone, 99,000 women in Italy lost their employment, versus only 2,000 men in the same month, figures from Italian statistics office Istat showed.

Economists say women in Italy have been disproportionately hit by job losses as they’re more likely to be precarious workers on short-term contracts, employed in service industries, such as in tourism or catering, which have been particularly badly hit by the coronavirus pandemic.

While it’s too early to see the full impact of the crisis on womens’ employment, it’s already clear that the pandemic has exacerbated long-existing problems with gender inequality in Italy’s labour market.

In 2019, fewer than half of working-age Italian women were in employment, according to the Organisation for Economic Co-operation and Development, even though women make up more than half of all Italians getting a bachelor’s degree or PhD.

Women hold banners reading “75% of all part-time workers are women” and “from 131000 infected workers, 7 out of 10 were women”, during a demonstration outside the Italian Ministry of Economy in Rome on International Women’s Day on March 8th, 2021. Photo: Filippo Monteforte/AFP

In Italy, as in many other countries, the pandemic has highlighted the fact that the bulk of household and family responsibilities still often falls on women.

“From lost jobs and the growing wage gap, to the increase in unpaid care jobs and an increasingly absent welfare state, this pandemic is setting women back a few years, if not decades,” writes financial daily Il Sole 24 Ore.

In May, a WeWorld survey carried out at the end of the first lockdown reported that one in two women had given up at least one job due to the pandemic, and 31% had cancelled or postponed a job search.

This figure is “not surprising”, Il Sole 24 Ore writes, “since only 21% of part-time or job flexibility requests, presented by workers with young children, was approved.”

It said female employees were struggling with “the difficulty of reconciling work with family responsibilities during the time of the pandemic.”

But even before the pandemic, data shows new mothers were either quitting or losing their jobs at an alarming rate.

In 2016, one in four Italian women lost her job within a year of giving birth, according to Istat – and the risk increased with each child, the study found.

Womens’ low participation in the workforce and the chronically low – and falling – birthrate in Italy are two issues which have long been intertwined, and are both now worsening due to the pandemic.

READ ALSO:  Italy’s low birth rate ‘plunging further due to coronavirus crisis’

The entrance of Rome’s Quirinale presidential Palace, decorated with yellow mimosa on the occasion of the International Women’s day. Photo: Filippo Monteforte/AFP

In 2019, Italy recorded its lowest birth rate for more than 150 years, as births fell to 435,000. This trend continued in 2020, with a 1.57% decline compared to the previous year.

Successive Italian governments have in the past failed to prioritise policies on affordable childcare and financial support for new parents, meaning many young Italian women were having to choose between family or career.

In the past year, the previous Italian government has taken some steps towards improving the economic situation for new parents, mainly by extending child benefit schemes and raising paternity leave from five days to seven, and then to ten – meeting the EU’s recommended minimum.

The 2021 budget included extended financial support for families with children, most notably in the form of child support benefits available for new parents: the ‘Bonus Mamma Domani’ and the ‘Bonus Bebé’.

READ ALSO: Italy’s ‘baby bonuses’: What payments are available and how do you claim?

Italy’s new prime minister, Mario Draghi, acknowledged last month that closing the gender gap at work, particularly in the south of the country, would be key to restructuring Ital’s economy after the crisis.

“Italy today has one of the worst wage gaps between genders in Europe, as well as a chronic shortage of women in senior managerial positions,” he said.

Gender equality means “rebalancing of the wage gap and welfare system, beyond the choice between family and work,” he said.

However his government has not yet made any firm policy announcements on the issue.

“Leaving women behind puts a brake on growth, it means leaving the whole country behind.” Linda Laura Sabbadini, director of Istat, told Il Sole 24 Ore. 

“The Bank of Italy has already shown that the increase in female employment brings with it an increase in income, and is an important element of protection from poverty.”

But the causes of the problem are deep-rooted and go beyond the purely practical or financial, experts say.

Paola Mascaro, head of a G20 working group created to identify best practices to support female leadership, said that on one hand “there is the lack of infrastructure, which some companies have tried to compensate for by providing nurseries and benefits.”

“Then there are cultural barriers, which refer to the patriarchal model in the background, which views work as more important for men than for women, and ensures that the burden of care remains 75% on the shoulders of women.”

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ECONOMY

How is Denmark’s economy handling inflation and rate rises?

Denmark's economy is now expected to avoid a recession in the coming years, with fewer people losing their jobs than expected, despite high levels of inflation and rising interest rates, The Danish Economic Council has said in a new report.

How is Denmark's economy handling inflation and rate rises?

The council, led by four university economics professors commonly referred to as “the wise men” or vismænd in Denmark, gave a much rosier picture of Denmark’s economy in its spring report, published on Tuesday, than it did in its autumn report last year. 

“We, like many others, are surprised by how employment continues to rise despite inflation and higher interest rates,” the chair or ‘chief wise man’,  Carl-Johan Dalgaard, said in a press release.

“A significant drop in energy prices and a very positive development in exports mean that things have gone better than feared, and as it looks now, the slowdown will therefore be more subdued than we estimated in the autumn.”

In the English summary of its report, the council noted that in the autumn, market expectations were that energy prices would remain at a high level, with “a real concern for energy supply shortages in the winter of 2022/23”.

That the slowdown has been more subdued, it continued was largely due to a significant drop in energy prices compared to the levels seen in late summer 2022, and compared to the market expectations for 2023.  

The council now expects Denmark’s GDP growth to slow to 1 percent in 2023 rather than for the economy to shrink by 0.2 percent, as it predicted in the autumn. 

In 2024, it expects the growth rate to remain the same as in 2003, with another year of 1 percent GDP growth. In its autumn report it expected weaker growth of 0.6 percent in 2024.

What is the outlook for employment? 

In the autumn, the expert group estimated that employment in Denmark would decrease by 100,000 people towards the end of the 2023, with employment in 2024  about 1 percent below the estimated structural level. 

Now, instead, it expects employment will fall by just 50,000 people by 2025.

What does the expert group’s outlook mean for interest rates and government spending? 

Denmark’s finance minister Nikolai Wammen came in for some gentle criticism, with the experts judging that “the 2023 Finance Act, which was adopted in May, should have been tighter”.  The current government’s fiscal policy, it concludes “has not contributed to countering domestic inflationary pressures”. 

The experts expect inflation to stay above 2 percent in 2023 and 2024 and not to fall below 2 percent until 2025. 

If the government decides to follow the council’s advice, the budget in 2024 will have to be at least as tight, if not tighter than that of 2023. 

“Fiscal policy in 2024 should not contribute to increasing demand pressure, rather the opposite,” they write. 

The council also questioned the evidence justifying abolishing the Great Prayer Day holiday, which Denmark’s government has claimed will permanently increase the labour supply by 8,500 full time workers. 

“The council assumes that the abolition of Great Prayer Day will have a short-term positive effect on the labour supply, while there is no evidence of a long-term effect.” 

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