Number of Italian Workers Projected to Decrease by 700,000 in Five Years

Rome: The number of workers in Italy is set to drop by 700,000 over the next five years due to the nation’s declining birth rate and its ageing population, the head of the Parliamentary Budget Office (UPB) told a hearing of the parliamentary commission of inquiry into the demographic transition. “The decline in the Italian population that began in 2014 will continue, accompanied by increasing ageing of it,” UPB President Lilia Cavallari said, adding that the proportion of the population that are young will stabilize at around 24% in the medium term.

According to Ansa News Agency, Cavallari highlighted that if current employment rates are maintained, Italy will face a loss of 700,000 workers in the next five years. Alongside the reduction in workforce numbers, there is also expected to be a decline in productivity as the workforce ages, with the largest group of workers being the baby boomers, aged between 50 and 64 years old.

Cavallari further noted that health and pension spending is anticipated to rise due to these demographic factors, while emphasizing that the public accounts should remain stable. She underscored the importance of maintaining the connection between life expectancy and retirement age to address these challenges.