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The labor market in Italy, 2000–2024

Author

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  • Francesca Marino

    (University of Padua, Italy)

Abstract

In 2024, Italy's labor market has reached record-high levels of employment and permanent contracts, marking a significant recovery from past downturns. Yet, persistent challenges remain. Youth unemployment and labor market duality remain high, and wages and productivity have stagnated for over two decades. Although several major labor market reforms have aimed to increase flexibility and reduce segmentation, many of their effects remain contested. Female participation has risen and long-term unemployment has declined, yet regional disparities remain deep and persistent, with the south lagging behind. Self-employment is widespread but often low income and non-entrepreneurial, while undeclared work continues to weigh on labor standards and fiscal capacity. Targeted reforms are needed to improve labor market inclusion, reduce fragmentation, and support sustainable growth.

Suggested Citation

  • Francesca Marino, 2025. "The labor market in Italy, 2000–2024," IZA World of Labor, Institute of Labor Economics (IZA), pages 4072-4072, August.
    • Handle: RePEc:iza:izawol:journl:2025:n:407v2
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    JEL classification:

    • J01 - Labor and Demographic Economics - - General - - - Labor Economics: General
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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