The Italian labor market is known for its special characteristics and dynamics. Here are some points that you as a German company should consider when looking for personnel in Italy, but which also offer opportunities:
High youth unemployment of over 23% (Statista, as of March 2023):Â In Europe, only Spain and Greece have a higher proportion of unemployed young people. One consequence of this is very low starting salaries. If you have appropriate training opportunities, e.g. at your headquarters in Germany, you can recruit skilled workers in the long term by hiring young professionals in your Italian branch.
High proportion of fixed-term contracts:Â In Italy, fixed-term employment contracts are widespread. Companies often use these types of contracts as a flexibility tool. However, this means that many workers do not have long-term job security. If you are able to offer permanent employment contracts, you will have a greater competitive advantage over other hiring companies in Italy compared to Germany.
Strong role of the family and high importance of the informal sector:_11100000 -0000-0000-0000-000000000111_The family plays a central role in the Italian labor market. Traditionally, close family ties are important when it comes to finding employment. Recommendations and relationships within the family can facilitate access to employment opportunities. In addition, there are a significant number of jobs that are not officially registered, especially in southern regions. This leads to challenges in complying with labor laws and the subgrouping of employees.
Large service sector:Â The service sector dominates the Italian economy and offers a wide range of employment opportunities. The tourism sector in particular plays an important role as Italy is a popular travel destination. Hospitality, hotel and other related industries provide many jobs, especially in tourist regions. If you are willing to rely on lateral entrants when expanding to Italy, this area is a large reservoir of applicants for you.
Bureaucracy and regulation:_11100000-0000-0000-0000- 000000000111_Italy has complex labor legislation. This can be challenging for companies, especially foreign companies. Compliance with Italian labor laws requires precise knowledge and careful planning. We can therefore recommend very good German-Italian lawyers and tax advisors who can support you in your expansion to Italy.
Strong union tradition: Trade unions have a strong presence in Italy and play an important role in negotiating working conditions and workers' rights. Collective bargaining and strikes are not uncommon and can have an impact on the labor market. This aspect becomes important if your branch has more than 15 employees.
These peculiarities make the Italian labor market a unique environment. When recruiting in Italy, it is important to consider these factors in order to be successful. As a personnel consultant for Italy, I support you in taking into account all the special features of the Italian labor market in your favor.