Italy grapples with low worker engagement, widening wealth gap and pension reforms amid a shift to service jobs

In Italy, only 11 % of employees feel genuinely involved in their work, according to a Gallup report, highlighting a stark disengagement despite heavy investment in HR technology. Experts warn that digitalising procedures alone does not capture employee wellbeing, skills or burnout risk.

The pension fund EPAP reported a 10 % growth in 2025, reaching €1.7 billion in assets with a 4.66 % return. President Carlo Cassaniti outlined reforms aimed at integrating professional welfare, tackling double taxation on returns and adapting the contributory system to changing demographics.

A Bank of Italy study shows household wealth rising to an average €453 thousand, yet the richest 10 % hold 60.6 % of total assets, with the Gini index climbing to 72.2, indicating deepening inequality.

ISTAT data reveal that while overall employment has risen, jobs in manufacturing, commerce and public administration have fallen by about 1.35 million positions since 2007. Service sectors have expanded, but many new jobs are low‑productivity, low‑pay positions, contributing to a modest 1.4 % increase in value added per hour compared with higher gains in other EU countries.