Italy faces declining real wages and industrial perception gap

Economic data reveals a significant decline in purchasing power for Italian workers. While real wages in France and Germany have grown by nearly 30% over the last three decades, Italy is the only major Western nation to record a decrease. Between 2019 and 2025, real wages in Italy fell by between 6% and 10%, impacting various professions from teachers to metalworkers.

Professor Marco Leonardi identifies several structural causes for this decline, including delayed collective bargaining in the services, tourism, and logistics sectors, as well as the failure to adjust IRPEF tax brackets to inflation. This lack of adjustment can result in workers paying higher taxes despite nominal raises that fail to keep pace with rising costs.

Additionally, there is a disconnect between Italy's industrial reality and public perception. Although Italy is Europe's second manufacturing power—with the metalworking sector alone accounting for approximately 8% of GDP and 50% of total exports—only 12.5% of Italians view industry as a fundamental pillar of the economy. Most citizens prioritize tourism and commerce, often overlooking the country's significant global industrial standing.