Italy labor costs: High employer expenses for young workers

A simulation by the National Confederation of Craftsmanship, Small and Medium Enterprises (CNA) reveals that hiring young workers in Italy is significantly more expensive than in other major European nations. For every 100 euros of net salary paid to a 25-year-old employee, an Italian company may spend over 180 euros when accounting for taxes, social security, and severance pay (TFR).

To provide a net annual salary of 24,000 euros, an Italian small business faces total costs exceeding 43,500 euros. This compares to costs of 42,800 euros in Germany, 41,100 in Portugal, 40,700 in Spain, 39,900 in France, and 30,400 in Ireland. The CNA warns that the expiration of temporary hiring incentives causes a sharp 16% increase in costs without any corresponding rise in worker pay.

In response to regional economic challenges, the Umbria Chamber of Commerce has approved a 28.6 million euro multi-year program for 2026–2031. The plan aims to improve credit access for businesses, support international exports, and combat the brain drain. One key proposal involves collaborating with the Umbria Region to provide public contributions to supplement the salaries of hundreds of university graduates to encourage them to remain in the territory.