Jobs fears as Italy eyes end to COVID-19 ban on layoffs

Coronavirus cases are now on the wane and Italy's layoff ban is due to expire at the end of June for the biggest companies. MILAN: Trade unions warn about a"social tsunami", left-wing parties of a"massacre for employment" - the imminent end of Italy's coronavirus freeze on layoffs is causing tensions in Mario Draghi's national unity government.

The European Commission entered the fray this month, denouncing the ban on layoffs as"counterproductive" as it protects employees on long-term contracts but not those in more precarious jobs, notably women and young people. The biggest party in parliament, the Five Star Movement, has echoed trade unions in calling for a further extension of the layoff ban for everyone, while far-right League leader Matteo Salvini wants companies to take back the"freedom to hire".

Despite the ban, there were 550,000 layoffs in Italy in 2020, as those related to disciplinary issues or the closure of companies were exempt. But the economy is picking up steam once again and some sectors such as manufacturing and construction are struggling to find staff owing to a lack of skilled recruits.

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