The Bank of Italy asserts that Italy requires a greater influx of foreign workers to stimulate employment growth.
KEY POINTS
1. Italy, as per the Bank of Italy, must increase its intake of foreign workers to address labor shortages.
2. By 2040, Italy is projected to witness a decrease of 5.4 million individuals in the working-age population.
3. With an unemployment rate of 8.2 percent in 2022, Italy ranks among the highest in the EU.
Italy faces a shortage of workers in various fields, particularly among women and young people aged 20 to 34. To address this issue, the Bank of Italy urges the authorities to ensure sufficient foreign workers to bolster employment opportunities.
In the recent Report on the management and activities of the Bank of Italy for 2023, published on May 31, Governor Fabio Panetta emphasized the necessity of attracting more foreigners to work in Italy to counteract demographic decline.
The report highlights a projected decline of 5.4 million individuals in the working-age population by 2040, even with Italy's current intake of around 170,000 foreigners annually.
To mitigate the effects of demographic decline, the report suggests sharp increases in employment rates, potentially up to the average levels seen across the euro area, to maintain the current number of employed individuals.
The Bank of Italy also recommends investing in childcare services to facilitate women's return to the workforce after childbirth and implementing policies to encourage the hiring of Italians who have been unemployed for an extended period.
Italy's unemployment rate stood at 8.2 percent in 2022, placing it among the EU Member States with the highest number of unemployed residents. Additionally, it ranks third in youth unemployment within the EU.
Governor Fabio Panetta identifies youth emigration as a significant factor contributing to labor shortages in Italy. Over 500,000 young Italians emigrated between 2008 and 2022, with only a third returning.
Factors such as higher salaries and better career prospects in other EU countries and beyond have motivated Italian graduates to seek opportunities abroad.
The 2023 European Employment Services (EURES) report highlights challenges in filling positions across 37 occupations in Italy, primarily in manufacturing, healthcare, food service, and IT. Positions in nursing, physiotherapy, and health and social services are expected to be particularly difficult to fill by the end of 2027.