No. 887 - Labour shortages in Italy: determinants, firms' responses and employment prospects

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by Silvia Anna Maria Camussi, Andrea Locatelli, Graziella Mendicino and Francesca ModenaOctober 2024

The paper analyses the recruitment difficulties faced by Italian firms after the pandemic, along with the strategies adopted to address these challenges. The analysis considers heterogeneity across regions and sectors, and based on workers' skills and firm-level characteristics. The paper further analyses the employment prospects for hard-to-fill occupations and their influence on regional mobility.

The difficulties in hiring are more marked in northern Italy, in the sectors of construction, manufacturing and ICT, and among STEM professionals and technicians. Companies active in labour-intensive or fast-growing sectors face greater challenges. Monetary incentives are the main tool adopted by firms to address these difficulties. Workers employed in hard-to-fill occupations typically display better employment prospects, more stable contracts and greater regional mobility.