Wages, EU shows progress—not Italy, at the bottom among the 27

Brussels – The Union’s labour market “shows progress in terms of quality of work and adequate wages”, but this is not the case in Italy, which is second to last in terms of post-pandemic pay adjustment and recognition of work merits. The  European Commission’s annual report on labour market developments  confirms once again the problem the country has with its workers. 

“We must do more to increase the purchasing power of workers and help tackle the cost of living crisis,” stresses the Executive Vice-President responsible for Social Rights, Roxana Minzatu. Her invitation is of a general nature but is particularly valid for Italy, where there are several limitations and criticalities. In fact, the European Commission’s annual report highlights several levels of shortcomings. 

First of all, it is emphasised, in one third of the Member States, real wages now significantly exceed pre-pandemic levels. “In contrast, in the Czech Republic, Germany, France, Italy, and Finland, they have not yet recovered” since the Coronavirus effectively shut down the economies of the Twenty-Seven. Of course, Italy is not alone in this particular ranking; moreover, it is in the same situation as the other two main eurozone economies. This does not change the fact that from 2019 to 2024, Italian wages recorded negative growth of 4.4 per cent. By the end of 2025, this figure is expected to rise to -3.3 per cent, but it will still remain at levels lower than the pre-COVID period. Only the Czech Republic has a worse situation, but it is clearly improving.

Moreover, Luxembourg and Ireland have the highest shares of high-paying jobs and productivity, at 27.6 per cent and 16.3 per cent, respectively. In contrast, Greece, Italy, and Romania have the lowest shares, at 5.8 per cent, 6.5 per cent, and 7.4 per cent, respectively. Italy, therefore, also ranks second to last for high-paying jobs, despite a decrease in the number of low-skilled workers. 

There is, therefore, a need for a change of pace, both in politics and in business. In Italy, but not only in Italy, Minzatu needs employers to change their mentality. Hence, the message for companies: “Although higher wages can increase productivity by motivating workers and pushing companies to innovate, it is crucial that companies compete on product quality rather than low costs,” stresses the European Commissioner.