Employment in Lombardy grows in the first quarter of 2024

(Il Sole 24 Ore Radiocor) - Positive employment trends in Lombardy. In the first quarter of 2024 it not only held up but grew: the industry sector recorded an increase in hirings leading to a positive balance (+0.5%), while in the handicrafts sector the increase in the incoming flow is even more marked (3.1%) and, alongside a slowdown in outflows (2.4%), leads to a positive balance of +0.7%. The employment data show a good state of health for Lombard manufacturing, despite a slight cyclical drop in production in the first three months of the year, conditioned mainly by external factors. Expectations for the next quarter remain encouraging, where the strengthening of industrial activity at global level together with the reduction in inflation and the possible drop in interest rates support entrepreneurs' confidence. According to Unioncamere data, the first quarter of this year saw a seasonally adjusted change in production in Lombardy of -0.3% for industry and 0.6% for handicrafts, with turnover contracting accordingly: -0.9% for industry and -1.3% for handicrafts. Weighing on the results in particular are the development of the war in Ukraine with a possible new increase in energy costs and the blockade of the Suez Canal. In this context, the performance of the various sectors was heterogeneous: transport means (+4.4% on an annual basis), chemicals (+3.6%), foodstuffs (+3.5%) and paper-pressing (+1.6%) showed good growth; while those suffering a bit more were the fashion sector (textiles -7.8%; clothing -5.9%; leather-footwear -3.2%). The steel industry also contracted (-4.6%). The reduction in production levels was less intense for mechanical engineering (-2.4%), non-metallic minerals (-2.0%) and rubber-plastics (-1.5%). Wood-furniture was stable (+0.1%).

'Monetary policy and the geopolitical situation do not help our economy, however, the rising employment figures and stable production allow us to be extremely optimistic for the coming months. Ours is a solid, mature ecosystem that, thanks to its flexibility, is able to give positive signals in negative contingencies such as those we are currently experiencing. Lombardy's extraordinariness is confirmed despite the supra-territorial 'brakes',' says Lombardy Region's Economic Development Councillor Guido Guidesi. "Geopolitical conditions are still a cause for concern, but for the second quarter of 2024 we are confident in the reduction of rates and the lowering of prices Foreign markets for Lombardy's industry remain relevant and in view of the albeit slow recovery of world trade we are confident that the numbers can improve," adds Gian Domenico Auricchio, president of Unioncamere Lombardia.

"Industrial production in Lombardy at the beginning of the year is suffering from a weak global trend and instability in several trade-critical areas of the world. Despite this foreseeable phase of slowdown, entrepreneurs are cautiously optimistic and see a recovery in the second half of this year driven in particular by the expected interest rate cut by the ECB, as well as by the drop in energy costs and inflation, but they are watching developments in the geopolitical context carefully," emphasises Francesco Buzzella, president of Confindustria Lombardia. "Lombardy companies have high expectations of a Europe that in the coming months will have to prove itself equal to contemporary challenges, supporting and protecting the entrepreneurial fabric with strong, far-sighted and shared choices. Enterprises, particularly manufacturing ones, are the only asset capable of preventing the economic decline of our continent,' continues Buzzella. 'In our opinion, the economic indicators for the craft sector remain comforting despite the slowdown in domestic demand. On the other hand, we look with concern at the reverberations of the international crises on the costs of raw materials and energy, while we await the steps announced by the ECB on the reduction of the cost of money, the number one problem for companies. The craft sector is now being called upon to face the ESG challenge: it is essential to identify an accompanying path for micro-businesses. Otherwise we risk losing another piece of Made in Italy,' concludes Stefano Fugazza, president of Claai Lombardia.