Italy’s newly formed Prime Minister faces strong challenge of high unemployment rates that had reached to a record height in January earlier on. This is clearly a bad indication which hints that the companies may fail to hire, even though the economy returned to a steady growth in the last quarter of 2013.
Unemployment rates rose to as high as 12.9 percent from 12.7 percent in December, the Rome-based national statistics office Istat said in a report.
PM Matteo Renzi took the helm of the nation on Feb 22 and this has been the strongest issue with which the government has to fight on. Renzi, as a step of gearing up the remedial activities has pledged to overhaul Italy’s labour market during his first 100 days in office. Such a measure could prompt to hire and revive the domestic consumer demand. The PM also has plans to use about 10 billion Euros worth of spending cuts to reduce personal income tax and a regional business levy.
Experts however say that such measures may not be all sufficient to curb down unemployment rates drastically to a desired level.
Being the third largest economy in the euro area it’s now the matter of standing the test of time for Italy to find an answer for all such sorry state of affairs.