Billy's blog

In the 1960s Italy gave generous benefits to its workforce such as bountiful job security, good pay, and lots of holidays. Currently Italy’s GDP growth sits at a shockingly low 1%(1). The labour issue has become a huge problem, as the laws are restricting employers from freely hiring and firing employees. Although Italy sought out to protect its workers with labour laws, their full effects are being felt some 50 years later by the workforce.

I feel that the labour issue in Italy is a case of complacency. It was doing very well, and as a result they felt as if they were doing everything right. Perhaps they were, as evidenced by their economy, however they failed to look ahead and prepare for oncoming changes such as the emerging importance of globalization. As a result, all of their regulations and laws became outdated, resulting in hindering their economic growth as they had limited flexibility. As a result of their poor judgement, they are now reaping what they have sown

1) http://www.businessweek.com/magazine/italys-labor-pains-11162011.html