VALLE D'AOSTA - Employment
Much commuting to jobs outside the region
Economic development has been slow but balanced, with agriculture and tourism distributed across the region in businesses which are essentially family-run. This means that there are no rigid dividing-lines between the various branches of economic activity in the pattern of employment. Those occupied in tourism are likely also to work on the family farm, and this tendency is reinforced by the seasonal nature of both activities.
There is much commuting by residents of Valle d'Aosta employed in other regions. There is a strong tendency to maintain ties with the region, in view of the benefits which derive from its particular political and administrative status.
During the last decade, the overall activity rate (% of the working population in relation to the corresponding total population) in Valle D?Aosta has grown very slightly, from 51.5% in 1990 to 53.4% in 2001. This is the result of a consistent rise in the female activity rate (from 39.2% to 44.8%), whereas the male activity rate has slightly fallen. The activity rate of the young age groups (between 15 and 24 years) has fallen dramatically in the same time period, from 52.6% to 43%.
The employment rate, which relates the working population to the corresponding population in working age, also shows a growth in the overall rate in the last decade, with a slight fall in the male employment rate, and a large rise in the female rate (19.4% between 1990 and 2001).
Job and vocational training resources are improving rapidly, but are still some way behind changes in economic reality; in particular the region lacks an establishment of university level.
Tourism, source of employment
In 1951 agriculture accounted for almost 40% of the labour force; over the years that percentage has fallen sharply; in 2003 it was equal to 3.8%.
This does not mean that agricultural holdings have been merged; they remain numerous, and they remain essentially family-run.
The percentage of jobs in industry has fallen very slightly, but its structure has changed substantially. The old mining and iron ore processing industries barely survive (in 1999 they represented 1.5% of total employment in industry), and small, highly specialized, advanced-technology light industries are booming.
Most significant is the growth in employment in the services sector, which accounted in 2003 for 73% of all jobs. The build-up of regional self-determination has led to a substantial increase in the number of jobs in administration, but the bulk of services sector employment is in tourism and tourist-related sectors. Here too, businesses are for the most part family-run.
The prevalence of family-run businesses in the agricultural and tourist sectors shows clearly that underlying social patterns have been left unharmed by the gradual but radical changes in the region's economy.
Unemployment under control
Unemployment in Valle d'Aosta presents particular features which are worth highlighting.
First, as a rule, the persons concerned are short-term unemployed, with a fairly short waiting period between jobs.
Secondly, a measure of deliberate unemployment may be discerned. The generally high standard of living and the existence of a family farm-holding cushion the unemployed for long enough to wait serenely until a better job with better pay turns up.
This situation is the result of the heavy State subsidies to the economy.
Because of its special status Valle d'Aosta has particular features in its structure which differ from those in other regions.
There are virtually no intermediary administrative organisations or regulatory bodies. This means that little time is lost on bureaucracy, and regional government reaction time is fast.
The region also possesses substantial financial resources, including not only transfers from central government but virtually all the indirect taxes paid in the region, customs duties, etc. These two factors underlie a considerable and efficient regional contribution to the region's economy, with planning, guidance and short-term measures.
In 2001, the unemployment rate in Valle d?Aosta was equal to 3.5% and was the lowest amongst the Italian regions. The a male unemployment rate was 2.6%, whereas the female rate was 4.7%.
High salaries, low labour costs
Labour costs in Valle d'Aosta are marked by a number of distinct features.
Although national labour agreements are observed, greater flexibility and greater liberty are allowed by the predominance of small businesses. Because of this, wide use is made of government measures to reduce the cost of labour, such as job-creation schemes, and tax breaks for smaller businesses.
As a result of this, the difference between the cost of labour to business and disposable income is slightly less than in other Italian regions. This in turn gives businesses greater opportunities to reinvest, and in industry and services allows wages somewhat higher than the national average for the year 1999.
Public servants are better paid than the national average. Amongst other differences in terms of public service employment, a substantial allowance is payable to those who are bilingual.
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