CGIL REPORT: work plan for employment

CGIL REPORT: work plan for employment

lavoro1The CGIL[1] reconstructs the dynamics of the main economic aggregates, rebuilding hypothesis of recovery and development for the country.

The only solution seems to be the creation of new works to end the crisis. These figures refer to the pre-crisis period to draw up a plan for growth from job creation: analyzing the data that relate to the period 2000-2007 (pre-crisis) it’s possible to note that the average annual rate of change of GDP stood at 1.6% with an average annual growth of the number of units of full-time work of 1.1%. The productivity and fixed investment, however, in the pre-crisis period, grew respectively by 0.5% and 2.5% per year. Since 2008, the GDP began to lose 1.1 percentage point a year, while in 2013 the jobs fell by more than a million and a half compared to 2007. Even the gross wages (-0.1%), productivity (-0.2 %) and investment (-3.6 %) decreased each year. The vision that emerges is daunting: the pre-crisis level of GDP would be recovered only in 2026, while employment rate in 2076. It is clear that, even at best, out of the crisis are still needed time. The road to recovery, therefore, doesn’t seem to be to insist on increasing the competitiveness and growth because it would risk too long and still several years of “social suffering.” To overcome the crisis and recover the growth potential is required a paradigm shift. It is no longer to focus on policies to increase the competitiveness of production costs but on job creation. “The creation of work creates growth, which in turn creates new job”. The CGIL offers strong support to the application through a special plan to direct creation of new jobs, new public and private investment towards innovation and common goods. A plan must be accompanied by a reform of public finance to free up resources in favor of fixed incomes (wages and pensions) and investments. According to the work plan of the CGIL, the pre-crisis level of employment could be recovered in just three years while in four years the level of GDP, productivity and investment. Even more important: the level of average gross annual salary of fact could be recovered even in 2014


[1] CGIL: Italian General Confederation of Labour