A shrinking workforce raises national concerns
According to Cgia di Mestre’s research office, by 2035 Italy will face a loss of 3 million workers. This drop is due to the ageing population and falling birth rate, resulting in a severe reduction of the working-age population. The repercussions will ripple through every sector of the economy.
Small and medium enterprises in the crosshairs
The SMEs, the backbone of the Italian economy, will suffer the most. With fewer workers available, productivity may decrease, skill shortages will increase and many businesses, especially in transport and tourism, could face operational difficulties. A GDP slowdown is also expected, which could undermine public debt sustainability and reduce investment attractiveness.
Public finances and welfare under pressure
Fewer workers mean lower tax revenues and higher spending on pensions and healthcare. This imbalance could strain the public finances and threaten the entire welfare system. The risk of a structural crisis is real if no action is taken.
Possible solutions
Italy must act now by increasing female workforce participation, attracting skilled immigration, investing in training and digital transformation, and encouraging smart automation. Without decisive reforms, the country risks running out of both labor and prospects.
Leave a Reply