Youth Unemployment in Italy: Causes and Consequences

Youth unemployment in Italy is a pressing issue, with over 35% of young people aged 15-24 struggling to find work. This is more than double the European Union's average youth unemployment rate.

According to recent data, the country's youth unemployment rate has been steadily increasing since 2008, with a significant spike during the economic crisis in 2011.

Young Italians are not just facing a lack of job opportunities, but also a lack of skills and experience that make them uncompetitive in the labor market. Many have limited access to education and training programs, making it difficult for them to acquire the skills needed to secure a job.

The consequences of youth unemployment in Italy are far-reaching, affecting not only the individuals but also the country's economy and society as a whole.

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Youth unemployment in Italy is a pressing issue, and to understand it better, let's dive into some statistics and possible causes.

In 2024, the youth unemployment rate in Italy was around 30% (Youth unemployment rate in Italy 2023, by region). This is a staggering number, and it's essential to break it down further.

The unemployment rate in the EU countries in November 2025 shows that Italy is not alone in this issue, but it's still significantly higher than other countries (Youth unemployment rate in EU countries November 2025).

A breakdown of the unemployment rates in G20 countries in 2025 reveals that Italy is among the countries with the highest youth unemployment rates (Breakdown of G20 countries with the highest youth unemployment rates 2024).

The share of young people who were NEET (Not in Education, Employment, or Training) in Italy in 2023 was around 20% (Percentage of young people who were NEET Italy 2023). This is a concerning number, as it indicates a lack of opportunities for young people.

The youth unemployment rate in Italy in 2023, by region, shows that some regions are more affected than others (Youth unemployment rate in Italy 2023, by region). For example, the region of Sicily had a youth unemployment rate of around 40%.

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Here's a breakdown of the youth unemployment rate in Italy in 2023, by region:

This table shows that some regions are more affected than others, and it's essential to address these regional disparities to tackle youth unemployment effectively.

The long-term unemployment rate in Italy in 2024, by gender, reveals that young women are more likely to experience long-term unemployment than young men (Long-term unemployment rate in Italy 2018-2024, by gender). This is a concerning trend that needs to be addressed.

The number of young people who were NEET in Italy in 2023, by age group, shows that the issue affects not only young adults but also teenagers (Number of young people who were NEET Italy 2018-2024, by age group).

The unemployment rate in Italy in 2020-2024, by macro-region, reveals that some macro-regions are more affected than others (Unemployment rate in Italy 2020-2024, by macro-region). For example, the macro-region of Southern Italy had an unemployment rate of around 20%.

The percentage of young people who were NEET in Italy in 2023 was around 20% (Percentage of young people who were NEET Italy 2023). This is a concerning number, and it's essential to address this issue to ensure that young people have access to education, employment, or training opportunities.

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Youth unemployment in Italy has severe consequences, including a brain drain that sees young citizens leave the country in search of job opportunities abroad. This brain drain is a significant loss for Italy, as it not only loses young labor force but also the investments made in their education.

Young Italians are lured by the prospect of higher salaries, with qualified individuals able to earn between 29% and 48% more in Northern Europe compared to staying in Italy. In 2016, over 39% of Italian emigrants were between 18 and 34 years old, and this number has been increasing steadily every year.

The regional divide between North and South within Italy is stark, with more than half of the young population unemployed in southern regions like Calabria, Campania, Puglia, and Sicilia. This is in contrast to northern regions like Lombardia, Piemonte, and Veneto, where unemployment rates among the young population vary between 5% and 10%.

Youth unemployment in Italy is a complex issue, but one major factor is the country's protectionist welfare system and labor market. In 2015, 62.4% of 15-24 year-olds who were registered unemployed for 6-11 months did not receive any benefits or assistance.

The Italian labor market has undergone significant changes, but temporary employment remains a significant issue, particularly among young people. In 2024, 23.9% of 25-34 year-olds are employed on temporary contracts, well above the EU average.

The government has implemented measures to address youth unemployment, including hiring incentives, support for entrepreneurship, and active labor market policies. These programs aim to strengthen the school-to-work transition and provide support for young people seeking employment.

Here are some key statistics on youth employment in Italy:

Young people in Italy face significant challenges when it comes to entering the labour market. The country's protectionist welfare system and labour market policy contribute to this issue, with 62.4% of 15-24 year-olds who were registered unemployed for 6-11 months not receiving any benefits or assistance in 2015.

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The Italian labour market has undergone significant changes over the past two decades, but temporary employment remains a major issue. In 2024, 23.9% of 25-34 year-olds were employed on temporary contracts, well above the EU average.

Young people in Italy often accept temporary contracts because no permanent positions are available, or because the job was only offered in temporary form. This reflects enduring structural barriers to secure employment for younger Italians.

The Italian economy faces renewed uncertainty due to global geopolitical tensions, energy market volatility, and tightening financial conditions. This fragile environment adds pressure to longstanding structural challenges in Italy's labour market.

To address these challenges, the Italian government has implemented various measures to promote youth employment, including hiring incentives, support for entrepreneurship, and active labour market policies. These measures aim to strengthen the school-to-work transition and provide support for young people who have just completed an education or training path.

A key goal of these measures is to increase the employment rate and reduce labour underutilization in Italy. The government also aims to promote reconciliation of private and working life for young people, while also promoting gender equality in the labour market.

Here are some key statistics on youth employment in Italy:

These statistics highlight the need for targeted reforms to enhance the inclusiveness and efficiency of the Italian labour market.

Undeclared employment is a significant issue in Italy, particularly in the southern regions. Around 13.3% of all Italian workers were not covered by a regular contract in 2014, falling into the shadow economy.

The problem is more pronounced in the south, where almost one-fifth of employment was undeclared, compared to around 10% in the north. This regional disparity has remained relatively consistent from 2000 to 2021.

In 2021, the share of undeclared employment in the south was still substantial, at 15.6%, down from 19.9% in 2000. The center regions saw a slight reduction, with the share of undeclared work at 11.7% in 2021, down from 14.1% in 2000.

The total share of undeclared work in Italy has decreased in recent years, but the problem still persists, especially in southern Italy. The need for policies that tackle this informal labor sector remains essential for improving fiscal revenue, labor standards, and overall economic efficiency and growth potential.

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Earnings in Italy have been stagnant for over two decades, with average annual wages decreasing in real terms from around $50,500 in 2000 to $48,900 in 2023.

Germany, on the other hand, has seen an increase in wages from $57,300 to $65,700 over the same period, while France has also experienced growth, from $49,800 to over $59,000.

The stagnation of wages in Italy is a major contributor to weak domestic demand and rising discontent among workers.

In contrast, other European countries like France and Germany have been able to increase wages and boost productivity, highlighting the need for structural wage-setting reforms in Italy.

Italy's high share of own-account workers without employees, at 12.8% as of 2024, is far above the EU average and more than triple the German figure, which is 3.6%.

This suggests that much of Italian self-employment reflects economic necessity, subsistence activities, or labor market segmentation, rather than growth-oriented entrepreneurship.

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The average income of individual entrepreneurs in Italy, at €22,373 in the 2019 tax year, is nearly identical to that of employees and dramatically lower than the €57,970 reported by self-employed professionals.

This disparity highlights the challenges faced by many own-account workers in Italy, who often struggle to make a living wage.

The funding of youth employment initiatives in Italy is a complex issue, with a total of 5 billion euros allocated to the National Plan for Youth, Women and Work (PN Giovani, Donne e Lavoro) alone.

This funding comes from a combination of national resources and European funds, with co-financing mechanisms and partnerships between state institutions and social partners. The Development and Cohesion Fund (Fondo per lo Sviluppo e la Coesione, FSC) is also a significant source of funding, with a total allocation of 77.9 billion euros for the 2021–2027 programming period.

The funding is used to support various initiatives and policies aimed at reducing youth unemployment, including measures such as youth employment measures, flexicurity measures, and reconciliation of private and working life for young people.

Here are some of the key funding sources for youth employment initiatives in Italy:

Italy's welfare system and labor market policy are major contributors to its youth unemployment problem. The country's corporatist structure leads to a fragmented benefit system, with separate schemes for specific private and public sectors, types of self-employment, and occupations.

In 2015, 62.4% of 15-24 year-olds who were registered unemployed for 6-11 months didn't receive any benefits or assistance, compared to 52.4% of the general population. This disparity highlights the exclusivity of benefits for young people in Italy.

The system is divided into two groups: labor market insiders who receive generous benefits, and irregular workers who receive minimal benefits. For example, an institutional worker would receive a pension of 89% of their average net earnings upon retirement, while a non-institutional worker would receive only 19%.

A study found that youth were excluded from benefits based on factors such as prerequisites for coverage, age coverage, and sanctions for incorrectly using the system. This creates inhospitable conditions for young people seeking jobs.

The unemployment benefits given to an Italian 18-year-old who has never had a job is 0% of average net earnings. This lack of support makes it difficult for young people to get their first job and become part of the labor market.

Here's a breakdown of the types of unemployment benefits in Italy:

This fragmented system and inflexible labor market policy make it challenging for young people to enter the labor market and secure employment.

The National Plan for Youth, Women and Work (PN Giovani, Donne e Lavoro) in Italy has a total allocation of over 5 billion euros, coming from a combination of national co-financing and the European Social Fund Plus (ESF+).

This significant funding allows for the implementation of various initiatives and schemes aimed at supporting youth employment.

The Development and Cohesion Fund (Fondo per lo Sviluppo e la Coesione, FSC) is the main national financial instrument used to implement policies, with a total allocation of 77.9 billion euros for the 2021–2027 programming period.

The European Structural Funds also play a crucial role in this funding, supporting the development of economic, social, and territorial cohesion, and the elimination of economic and social disparities.

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Italy's labor market is plagued by pronounced divides across generations and territories. The country's youth are struggling with low employment prospects and declining participation.

Regional disparities persist, with the south consistently falling short in both job creation and productivity. This has resulted in a persistent duality in Italy's employment structure.

Despite numerous labor market reforms since the early 2000s, the country's structural weaknesses remain. These weaknesses risk undermining Italy's economic recovery.

Improving wages and productivity will require encouraging firm growth, formalization, and investment in skills, technology, and infrastructure.