Jobless rate in Italy to reach 11 percent

April 25th, 2010 - 9:12 am ICT by IANS  

Rome, April 25 (IANS/AKI) Even as the country is going through its worst economic crisis since the World War II, unemployment in Italy is expected to rise to 11 percent by 2012, a study has said.
“The full effects of the recession, in terms of permanent employment and unemployment, still haven’t materialised. Wages will be penalised by growing unemployment,” Prometeia, an independent economic research institute, said Friday.

Italy shed 380,000 jobs in 2009, lifting the unemployment rate to 8.6 percent, from 7.1 percent in 2008, the national statistics agency Istat said earlier this week.

Joblessness stood at 8.5 percent in February, Istat said, adding that it was the biggest rise since 1995.

Italy had emerged from the recession in the third quarter of 2009 and contracted again in the next three months till December. Many economists are of the opinion that the country may register another contraction in the first three months of 2010.

In its annual World Economic Outlook, the International Monetary Fund this week forecast that Italy’s unemployment rate will rise to 8.7 percent in 2010 before slipping to 8.6 percent in 2011.



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