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Italy demographic decline and workforce imbalances

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2026-09-08 09:56 UTC → 2026-09-19 05:26 UTC · added ~~removed~~

Italy’s demographic and economic challenges are intensifying as birth rates reach historic lows and workforce imbalances deepen. In 2024, the country recorded 369,944 births—the fewest since unification in 1861—with a fertility rate of 1.18 children per woman. This decline is driven by precarious employment, low wages, and gender inequality. Economic stability is threatened by a decoupling of employment and wages. While employment has risen, real wages have declined by 7% to 12% due to a structural shift toward low-value sectors. Regional disparities are widening; a CGIA Research Office report shows that in 2024, Northern workers averaged 255 working days per year, while Southern workers averaged only 228 days. This 27-day gap is driven by job insecurity, part-time employment, and seasonal work, alongside a 36% wage gap between the regions. Labor market participation also lags behind European peers. Estimates from the National Confederation of Craftsmanship (CNA) suggest that by 2025, Italians will spend an average of only 33 years in the workforce, compared to the EU average of 37.5 years. Gender disparity is particularly acute, with Italian women expected to work for only 28.4 years—the highest gap in the EU. These issues are compounded by a significant brain drain. Between 2011 and 2024, Italy lost 441,000 citizens aged 18 to 34. Research by Ref Ricerche and Questlab indicates that 83% of highly educated young expats would consider returning if offered higher salaries, better professional opportunities, and improved meritocracy. By the second quarter of 2026, employment rose to 24,447,000, a 1% increase from 2025. Despite this growth and improved permanent contracts for youth, Cisl Secretary Mattia Pirulli noted that participation among women and youth remains a critical issue. In regions like Salerno, while employment rates reached 52.3% in 2025, officials emphasized the difficulty of translating employment into better wages and regional development.

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