W2L2W project Brescia, December the 12th 2013

“No country for young people”Youth, education and work in Italy

Contents

1. The Education system

2. Early school leavers

3. Youth Employment

4. Youth Unemployment

5. Social Benefits

6. Best Practices

Giving a brief presentation of the Italian context from a regulatory point of view is an hard task. Italy is the birthplace of modern law, and Italians “love” to produce legislation… A meaningful figure: in the graph the number of laws in force in Italy compared to other European countries…

Just a remark!

Great Britain Germany France Italy0

20000

40000

60000

80000

100000

120000

140000

160000

So when presenting the legislation relating to benefits, compensation, assistance, etc.. keep in mind that we had to

simplify.

EDUCATION

Education in Italy

6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

AGE

Primary school

5 years

Secondary school(1° degree)

3 years

Secondary school(2° degree)

5 years

University

3 +

University

2 years

6 Compulsory education 16

Apprenticeship 18

Compulsory training 18

Secondary school (2° degree): detail

• High school: 5 years duration, main goal is to prepare students to enter university rather than to enter into the work market

• Technical Institutes: 5 years duration. 2 main branches, divided into different specializations: economics (i.e tourism sector, commercial and administrative law..); technology (i.e mechanics, electronics, computer science, chemistry and materials, agro-industry and agribusiness, nautical and aeronautical, video and music making..). More focused on the work market. It allows access to university.

• Professional institutes: main goal is to train to a profession but unlike high schools and technical institutes offer a less theoric and more practical training. Focused on the work market. It allows access to university.

Apprenticeship

is a labour contract with a training purpose. The apprentices earn a wage and work alongside experienced staff to gain job-specific skills while attending a training program provided both by the enterprise and off-the-job by a training centre or a school/university.

Regulated by law: at national level the “Testo Unico” Act (2011) set the main framework and established responsibilities. Regions regulate apprenticeship especially for what concerns training; trade unions and employers’organizations - through collective bargaining - establish the rules for the application of the contract. Divided into 3 typologies (see next slide)Duration: up to three years (five years in handycraft) to complete depending on the type, the industry sector and regional regulations. Salary determined by the collective agreements.

Young people from 15 to 30 can apply for an apprenticeship in all companies of the private sector. Most apprentices aim at acquiring a vocational qualification. They are aged among 18 to 24, almost 1/3 is 25 and older. They are employed mainly in: tertiary sector, retail SMEs and tourism industry. 50% of apprentices has gained only a lower secondary education certification.

What

How

Who

Apprenticeship typologies1° Type: apprenticeship to gain a vocational qualification or diplomaFor young people aged 15 to 25 who want to complete compulsory education through a work-based experience, in all the fields of activity. The purpose is to gain a vocational qualification or a vocational diploma, that are certifications of the upper secondary level of the VET system, nationally recognized. Duration: 3 or 4 years.

2° Type: employment-oriented apprenticeshipFor young people aged between 18 and 29 years old, who want to enter the labour market and learn a job. It allows to gain a qualification based on collective contracts and/or basic or technical skills. Its duration is generally of three years, five years for craftsmanship. It is the most diffused form, covering up to 95% of all apprentices.

3°Type: higher education and research apprenticeshipA complex form of apprenticeships, permitting to fulfill different aims. For young people aged between 18 and 29 years old who want to: take an upper secondary level diploma or higher education degree that could be obtained through a full time education programme as well; gain a technical qualification through a work-based experience with all the advantages of a labour contract; get a job and become a researcher in the private industry sector. Duration is not fixed, but decided, depending on the apprentice project and certification to be gained, among all the partners involved (normally comprising at least a school or university and an enterprise).

EARLY SCHOOL LEAVERS

Nether-lands

Spain Italy United Kingdom

EU 27 Greece Romania Germany Belgium Ireland0

5

10

15

20

25

30

35

8.8

24.9

17.6

13.612.8

11.4

17.4

10.512

9.7

200620102012

How many? (age 18-24)

about

758.000

Who?

59.6

40.4MaleFemale

I was confused, I didn't know what to do

I had personal problems

I didn't like studying

I could not study

I wanted to work

I wanted to earn

0 5 10 15 20 25 30 35 40 45

Why?

Where?

Neet

2007 2008 2009 2010 2011 201212.0

14.0

16.0

18.0

20.0

22.0

24.0

26.0

16.216.6

17.7

19.119.8

21.1

18.919.3

20.5

22.122.7

23.9

15-24 years15-29 years

EMPLOYMENT

Central Governmenta) work, social benefits and retirement legislationb) incentivesc) management of Social and unemployment benifts trough a special national Agencyd) UE funds planninge) systemic actions plans, also following EU strategies f) national councils (observatories) on work and social policies. Regionsa) directions of Active Work policies (VET and training; Public Work Centers…)b) systemic regional plans. Provincesa) management of Public Employment Centersb) registration of workers, unemployed and disabled to the related lists c) local management of ESF and other Employment funds directly or trough the action of accredited Training and Work agencies, according to national and regional legislationsd) local systemic actions. Municipalities a) work integration of social disadvantaged people.

Employment policies: levels of competence

Main agencies in the labor market

Employment centers: from 1997 “Employment Centers” have been reformed, giving them new tasks - including providing information, counselling and selection, and a more active role in work placement. They have the task of matching work demand and offer at local level, under the authority of the Ministry of Labour and Social policy.

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Temporary employment agencies: Can provide recruitment and selection services and professional support for job search.. To be authorized they must met specific economic, know - how and logistics criteria set by law. Can run training, retraining and labour insertion programs for socially disadvantaged people.

Accredited Work Agency: Work agencies authorized by the Regional Government. They offer:• Information (on incentives, grants, job offers, special projects..)• Orientation • Recruitment and selection• Support in job search • On the job mentoring.Entitled to access regional funding to support their services (so called “sistema dote”).

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Our work agency!

Other actors in the labor market

Youth Information points: Free municipal services for young people (Sometimes managed by social enterprises). They provide information and advice about:• school choice• job search• leisure and holidays• social engagement activities and volunteer• experiences of study and/or work abroad.

Work Integration ServicesFor mentally and phisically disabled and other socially disadvantaged people. Funded by municipalities, might be managed by social entrerprises. Beneficiaries are sent by municipal social workers. Placement is facilitated by the obligation for companies to employ a certain % of people belonging to these categories.

More in tomorrow morning presentations

Our Work Agency runs the WI service in most of Brescia Province

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Incentives for employment - 1

The incentive scenario is rather intricate, deriving from a bunch of different laws enacted at different levels (national, regional and local).

Incentives have different nature: economic, fiscal, legislative or regarding social security contributions.

Focus on targets (age, gender, territories, sectors..)

Incentives for employment - 2

At national level, specific for young people:

for companies employing people aged 18-29 who have been unemployed from at least 6 months or have not obtained a secondary school degree (decontribution of 650 Euros per month for 18 months)

for companies offering an apprenticeship contract (elimination of 100% of the contributions for 3 years)

At national level, all the other incentives are related to different unemployment conditions (long term enemployment or being part of one of the social benefit programs described further on)

Specific programs“Dote Giovani” (dote = endownment but also dowry like in marriages)It is an individual grant - according to the system in force in our Region - that job seekers can “spend” to obtain training and orientation services from an accredited work agency. Periodical, might include an incentive for the enteprise

UNEMPLOYMENT

Unemployment rate(national, regional, local)

in 7 years unemployment rate has

doubled

2007 2008 2009 2010 2011 2012 20130.00

2.00

4.00

6.00

8.00

10.00

12.00

14.00

6.09 6.74

7.798.42

8.41

10.70

12.50

3.433.73

5.36

5.60 5.77

7.48 7.60

3.19 3.12

5.28

5.82 5.796.77 data not

available

ItaliaLombardiaBrescia

Youth (age 15-24) unemployment rates (national, regional, local)

2007 2008 2009 2010 2011 2012 20130.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

45.00

20.29 21.25

25.4427.84

29.10

35.26

40.40

12.86 12.48

18.54

19.78

20.75

26.62 Datanot available

8.616.09

14.22

16.72

21.2623.07

Datanot available

Italia

Lombardia

Brescia

in 7 years youth unemployment rate has

doubled

Inactivity rate (data 2011)

MaltaITALIA

Ungheria

Romania

Bulgaria

PoloniaBelgio

Grecia

Lusse

mburgo

Slovacchia

Irlanda

Slovenia

Francia

Repubblica Ceca

Lituania

Lettonia

SpagnaCipro

Portogallo

Estonia

Finlandia

Austria

Regno Unito

Germania

Paesi Bassi

Danimarca

Svezia0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

37.836.7

33.330.6

26.3 24.322.8

21.6

Average rate

for EU: 28,8

Main unemployment benefits - 1ASPI (Social insurance for employment)Economic benefit in favor of employees who have lost their jobs involuntarily

Requirements :State of involuntary unemployment .At least 2 years of insurance & 1 year of contributions in the last two years

Decadence: loss of unemployment re-employment for at least 6 months retirement, refusal to participate, without justification, to an active policy initiative (training ,

internships , etc. .) or non-regular participation non-acceptance of an offer of employment whose pay level is at least 20% higher of the gross

amount of the allowance.

Duration:

Amount:

YearAge

< 50 >50 & <55 > 552013 8 months 12 months 12 months2014 8 months 12 months 14 months2015 10 months 12 months 16 months

75% of the average monthly salary for the last two years*

*if it is <= 1.180 €/month. if it is > 1.180 €/month 75% of € 1.180 + 25% of the difference between € 1.180 and the average monthly salary for the last two years

Mobilità (Mobility allowance)It is an intervention to support redundant workers in case of:Depletion of the Extraordinary Redundancy Fund (see next slide);Staff reduction;Business transformation;Company restructuring;Company closure.

Main unemployment benefits - 2

Requirements: possession of a seniority of at least 12 months, of which at least six of the actual work.

Duration:

Amount:

Age in central/northern Italy in southern Italy

< 40 12 months 24 months>= 40 & < 50 24 months 36 months

> 50 36 months 48 months80% of the theoretical gross remuneration due

Main unemployment benefits - 3

Cassa Integrazione Guadagni Straordinaria (Extraordinary redundancy fund)A financial benefit that supplements or replaces workers salaries in order to cope with the crisis of the company or to allow it to deal with restructuring or reorganization.

Requirements: Beneficiaries may be workers employed under a contract of employment with at least 90 days of seniority.

Duration: from 12 to 36 months, depending on whether it's business in conversion, restructuring, business crisis or bankruptcy procedure.

Amount: The allowance amounts to 80 % of the salary that the employee would have received for the hours not worked between zero hours and the contractual time limit and no later than 40 hours per week .For the year 2013 thresholds are set in:€ 959,22 gross per month for those employees whose remuneration is less than or equal to € 2.075 gross per month;€ 1.152,90 gross per month for employees who have a salary greater than € 2.075 gross per month.

SOCIAL BENEFITS

Social spending

EU 27

EU 15

Italy

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

39.1

38.8

51.3

5.2

5.3

1.9

1.4

1.4

0.2 Old age

social benefits for rela-tives

Family

Disabilities

Housing

Disease

Unemployment

Social exclusion

A look at social spending in Italy, compared to the rest of Europe

Social spending in Italy is strongly unbalanced to the benefit of the elderly rather than family and young people

National level(law 328/00 defines the minimum levels of assistance)

Local level(specific regulation of services and access policy)

Services: in general, municipalities provide: Social housingResidential servicesEducation and care for children, disabled and

elderlyServices of first asylum for homeless.

Social benefits

Economic contributions: in general you can get financial help when you are in state of need or you live in a particularly fragile situation (job loss, serious illness or disability...). Such situations are defined through economic parameters (ISEE certification) and assessed by a social worker.

Municipal economic aid may result in:Fixed monthly allowance for short periodsTotal or partial contribution for creche and kindergarden feesVouchers to spend in the supermarket for groceriesContribution for households expensesChecks on the occasion of a new bornVouchers for medicinesContribution for rent

Multifaceted scenario, different:

Sources of funding (UE, Ministries, Regions, Foundations, donors..)

Actors (public, private, Foundations, Third sectors) Level of actions

Italian Best Practice scenario

Best practiceThe industrial district of mechatronics (Bari - Puglia)Industrial District: agglomeration of enteprises, generally SMEs, located in a limited geographical area, specialized in one or more phases of a production process and integrated through a complex network of economic and social relations. They often include training agencies, that through dialogue with companies adapt their training offer to the marked demand. Today there are aroud 200 industrial districts acknwoledged by law, patchily distributed throughout the country.

Among the more than 200 districts, Bari mechatronics district is recording one of the best performance. In 2013 export increased of a 40.3%. Relevant results also in terms of (youth) employment: with support from the companies, the district has opened the first technical school dedicated to train the profiles required. At the first cycle of graduation, the school has achieved a performance superior to the best Italian universities, with 65% of recruitments which has become 80% after a few months.

Public and private organizations are partners of the district: companies (i.e Bosch), Confindustria, the Province of Bari, the University and other technical schools.

Best PracticesFinal question and ideas for discussion

Policies and good practices have impact on different levels Levels can be macro (UE, countries, policy, industry sector..),

meso (regional/local levels, districts, organizations) and micro (thus methodologies/approaches/tools)

At which levels can W2L2W act?