No. 962 - The Italian labour market after the pandemic
This paper examines Italy's sustained growth in employment over the past five years. It documents the main changes in the sectoral composition of firms and in their wage policies, with particular attention to those firms that were most influenced by technological change.
Between 2019 and 2024, employment growth was driven by both temporary factors - including the decline in real wages and the increase in public investment - and the expansion of advanced services. Wage gaps between companies widened. Those paying higher compensation did not show greater employment growth but, rather, increased capital intensity. The rapid rise in the number of employees was accompanied by growing difficulties in recruiting, especially in technology services.