One in Four New Workers in Italy Are Foreign Nationals: What This Means for Your Job and Residency

Italy's Labor Market Now Depends on Foreign Workers to Function

The Italian Ministry of Labor and research institute CGIA di Mestre have confirmed a structural shift in the country's workforce: employers will hire 1.36 million foreign workers in 2025, representing 23% of all new hires—effectively, one in four new employees is not Italian. This marks more than a doubling of foreign labor intake since 2019, underscoring how immigration has evolved from a supplementary phenomenon to a core pillar of economic stability.

Why This Matters

• Labor shortages are now permanent: Sectors like agriculture, construction, and hospitality cannot fill positions with domestic workers, making foreign labor non-negotiable for business continuity.

• Fiscal contribution: Foreign workers pay more into the pension system than they withdraw, helping offset the retirement burden on younger Italians.

• Regional variation: CGIA data shows significant geographic disparity in foreign worker concentration across Italian regions.

• Government quota expansion: Italy has authorized new foreign worker entries, with structured immigration planning extending through 2028.

The Sectors That Cannot Operate Without Foreign Labor

The dependency is most acute in industries that Italians increasingly avoid or lack the skills to fill. Agriculture leads with 42.9% of new hires being foreign, followed by textiles and footwear at 41.8%, and construction at 33.6%. In cleaning services and transport, the share is 26.7%.

In absolute terms, hospitality employs the most foreign workers—231,380 in roles ranging from chefs to dishwashers—followed by cleaning services (137,330) and agriculture (105,540). These are not temporary or marginal positions: according to the Fondazione Leone Moressa, Italy now counts 2.2 million non-EU dependent workers, concentrated in the industrial North.

Emilia-Romagna, Lombardy, and Tuscany host the highest regional densities, with foreign workers accounting for 16.6% to 17.4% of the workforce, according to CGIA analysis.

Hard Numbers from the Field

The Italian Revenue Department and INPS (National Institute of Social Security) data reveal that between 2019 and 2024, Italy added 1.5 million workers, half of whom were non-EU nationals. In 2024 alone, 2.7 million employment contracts were activated for foreign workers—25% of all activations.

By 2025, foreign workers contribute significantly to Italy's economic output, with particularly high shares in specific sectors: 18% in agriculture and 16.4% in construction. Without this influx, entire supply chains—from food production to infrastructure development—would face significant disruption.

What the Government Is Doing (And Why Demand Persists)

Rome has responded with structured immigration planning to address labor gaps. The government has authorized new foreign worker entries in recent years, with quotas targeting sectors with chronic shortages: agriculture, construction, manufacturing, and care services.

The quota system remains responsive to labor market signals. According to CGIA, 73.5% of firms hiring foreign workers cite domestic labor scarcity as the primary driver—not cost savings (only 3% cite this motive). Demand for skilled operators (47.1%) and general laborers (32.6%) continues to outstrip supply.

Demographic projections underscore the urgency: by 2035, Italy's working-age population will shrink by 3 million people. The pension system, which relies on active workers funding retirees, will face an unsustainable burden unless immigration accelerates. Currently, foreign workers—younger on average and less likely to claim pensions immediately—contribute a net positive to fiscal balances, according to CGIA calculations.

Impact on Expats, Investors & Long-Term Residents

For foreigners already living in Italy, this labor market evolution has several implications:

Professional competition is easing in blue-collar roles: If you operate a small business in construction, hospitality, or logistics, finding reliable staff remains challenging—but the government is systematically expanding the foreign labor pool to address this.

Entrepreneurship by immigrants is rising: CGIA notes a growing number of foreign-owned businesses, which in turn create jobs for both Italians and other immigrants. This trend is particularly visible in ethnic catering, logistics startups, and specialized construction services.

Regional disparities matter: If you are hiring in Emilia-Romagna or Lombardy, expect 16-17% of applicants to be foreign. Understanding visa sponsorship obligations and multilingual workplace compliance is now essential for employers.

Pension sustainability gains breathing room: The influx of younger foreign contributors postpones—but does not eliminate—the pension challenge. Long-term residents should recognize that retirement policies will continue to evolve over the coming decade.

The Inequality Embedded in This System

While the macroeconomic data shows positive fiscal contributions, the reality on the ground is uneven. Foreign workers in Italy face a 10.1% unemployment rate, nearly double the 6.1% rate for Italians. When employed, they cluster in low-wage, temporary contracts: the share of fixed-term and involuntary part-time work is significantly higher among non-Italians.

The care economy—elderly assistance, domestic work, and health services—absorbs a disproportionate number of foreign workers, often under informal arrangements that skirt labor protections. The Italian Labor Inspectorate has repeatedly flagged these sectors for wage theft and illegal contracts, but enforcement remains weak.

Moreover, many foreign workers struggle to accumulate the 20-year contribution requirement for a full pension, forcing them to either work past retirement age or return to their countries of origin with minimal benefits.

What Comes Next: Planning Through 2028

The government's immigration plans signal a policy shift toward managed labor migration rather than ad hoc responses to crises. Italy continues to adjust quotas and regulatory frameworks targeting sectors with chronic shortages: agriculture, construction, manufacturing, and elder care.

Bureaucratic delays in visa processing remain a persistent challenge that policymakers are working to address. Integration initiatives are gradually expanding, with growing employer investment in workforce development.

A Reality Check on Labor Market Dynamics

CGIA explicitly addresses the narrative around labor market displacement. The data supports this analysis: the jobs filled by immigrants—farmhand, line cook, construction laborer, home care aide—are positions Italians either refuse or lack the willingness to perform at prevailing wages.

The Italian National Statistics Institute (ISTAT) confirms that between 2009 and 2020, the share of foreign workers in the economically active population more than doubled—from 7.9% to 13% among women and 9.1% to 16.7% among men—without corresponding declines in Italian employment rates in those same sectors.

What is happening is driven by demographic and economic necessity. Italy's birth rate remains among the lowest in Europe, and internal migration patterns have shifted. Without foreign labor, entire industries would face significant operational challenges, public services would be strained, and the pension system would face pressures.

Final Takeaway: Immigration as Economic Reality

For anyone living, working, or investing in Italy, the data from CGIA and the Ministry of Labor makes clear that immigration is integral to Italy's economic functioning. The country's ability to maintain its agricultural output, construct housing, staff hospitals, and serve meals depends on the continued arrival and integration of foreign workers.

Whether you are an employer navigating visa quotas, a taxpayer concerned about pension solvency, or a resident observing neighborhood demographics shift, the 2025 data illustrates that Italy's economic model is undergoing a structural transformation driven by demonstrable labor market realities.