Italy is dealing with a shortage of workers in numerous occupations, in particular amongst women and young people between the ages of 20 and 34 years old. In order to tackle the problem, the Bank of Italy has urged the country’s authorities to make sure they secure enough foreign workers who can help revive employment in Italy.

– Advertisement –

In the most recent Report on the management and activities of the Bank of Italy for 2023, published on May 31, the governor of the Bank of Italy, Fabio Panetta has noted that it is necessary to bring more foreigners to work in Italy in order to counteract the demographic decline, Schengen.News reports.

In its report, the authority has pointed out that there will be 5.4 million fewer people of working age by 2040, compared to now, even if Italy continues to let in around 170,000 foreigners per year, as it does now.

Sharp increases in employment rates – up to the average levels of the euro area – could counterbalance the effects of the demographic decline and keep the number of employed people unchanged.

The authority has also listed several ways through which Italy could make sure that people stay in the labour market, including by investing in childcare services in order to allow more women to return to their jobs after giving birth.

At the same time, it has pointed out that more policies are needed in order to stimulate the hiring of Italians that have been out of the labor market for some time.

Data by Statista show that Italy is one of the EU Member States with the highest number of unemployed residents, which figure stood at 8.2 per cent in 2022 alone. At the same time, the country has the third highest youth unemployment rate in the EU.

Young People Leaving Italy Amongst the Main Problems

In the report, the governor of the Bank of Italy Fabio Panetta lists young people leaving Italy as one of the main reasons for the increasing labour shortages in the country.

According to him, throughout a period of 15 years, between 2008 and 2022 more than half a million youngsters left Italy, with only a third of them having later returned home.

Youth employment has been affected by low growth. Many have sought better job prospects abroad: 525,000 young Italians have emigrated between 2008 and 2022; only a third of them have returned to Italy.

He claims that the main reasons behind Italian graduates leaving the country are higher salaries and better career opportunities in other countries of the EU and further abroad.

Italy in Dire Need to Fill in Jobs Across 37 Occupations

The 2023 European Employment Services (EURES) report on shortages and surpluses has revealed that Italian employers are struggling to fill in positions across 37 occupations, mainly in manufacturing, healthcare, food service, and IT.

In particular, the EURES report points out that by the end of 2027, positions of nurses, physiotherapists, and qualified professionals in health and social services will be the most challenging to fill.