Study Reveals Foreign Workers in Italy Typically Earn Less Than Native Workers
Key Takeaways
1. A recent study reveals that foreign workers in Italy tend to earn less than their local counterparts.
2. As of January 2023, nearly 2.4 million foreigners were employed in Italy, making up over ten per cent of the total workforce.
3. Italy is projected to require more foreign workers in the coming years to address labor shortages across various sectors.
According to a recent report by the Italian Ministry of Labour and Social Policies, the number of third-country nationals (TCNs) working in Italy reached nearly 2.4 million by January 2023.
Although they represent over ten per cent of the workforce, TCNs in Italy generally earn less than Italian workers.
Citing the report, IlSussidiario noted that over 70 per cent of these foreign workers occupy roles with professional characteristics and contracts that result in 30 per cent lower earnings compared to Italian workers.
Industries with the highest concentration of migrant workers include personal services (30.4 per cent), agriculture (18 per cent), catering and tourism (17.4 per cent), construction (16.4 per cent), and transport and warehousing (12.4 per cent).
33% of TCN-Only Families Are Living in Absolute Poverty
The report also highlighted that over 33 per cent of families comprised solely of third-country nationals are living in absolute poverty, compared to just over six per cent of Italian families.
Meanwhile, the total number of TCNs living in Italy, including those employed, reached 3.2 million as of January 2023.
The most common foreign nationalities in the Italian labor market include workers from Morocco (399,146), Albania (389,646), Ukraine (383,511), China (284,495), and India (164,419).
1 in 4 Jobs in Italy Targets Migrant Workers
Despite being paid less than locals, foreign workers are increasingly needed in Italy to fill labor gaps.
A recent report by the Union of Chambers of Commerce and the Italian Ministry of Labour indicated that one in four job openings in the country is targeted at foreigners.
The report also noted a growing demand for foreign labor in the construction sector during the first seven months of 2024.
However, construction is not the only sector facing labor shortages in Italy. The 2023 EURES report on shortages and surpluses identified labor deficits in 37 occupations, including manufacturing, healthcare, food service, and information technology.
In addition to current shortages, the demand for foreign workers is expected to rise due to factors such as Italy’s aging population.
According to a previous note by the IDOS Study and Research Centre, Italy will need at least 280,000 foreign workers annually until 2050 to address its labor shortages.