The global appeal of Italy’s fashion, food and sports cars long ago proved that the country’s businesses have few equals when it comes to marketing abroad. But selling Italians themselves on the merits of the nation’s economy has been a bigger challenge. Italy’s politicians, central bankers and academics contend the global capital of style can’t reach its full potential until it persuades more of its own citizens to seek employment.
In this week’s episode of “Stephanomics,” reporter Alessandra Migliaccio explores why 2.6 million Italians who could be looking for work aren’t. Bank of Italy Governor Ignazio Visco discusses how the country has one of the lowest labor force participation rates in Europe, and that demographic trends aren’t likely to make things better. The number of Italians between 15 and 64 is expected to fall by 5 million over the next 15 years, with many of those remaining living in the nation’s economically disadvantaged South.
To be sure, other countries have seen workforce challenges throughout the pandemic. But Italy faces unique structural problems, Rosamaria Bitetti, an economist and lecturer at Luiss University in Rome, tells host Stephanie Flanders. First, Italians tend to spend more time in school and away from work, partly because the nation’s university system encourages students to linger, Bitetti said. Other challenges include a dearth of childcare providers and a growing elderly population that relies on younger generations for care.
Finally, economist Nouriel Roubini (nicknamed Dr. Doom for his often ominous predictions) lives up to his billing as he warns that the US, UK, euro zone and other advanced economies have little hope of avoiding recession. During a talk at the recent Qatar Economic Forum, Roubini said the combination of Russia’s war on Ukraine, inflation, a Chinese Covid-zero policy that’s hurting supply chains and loose monetary and fiscal policies suggests “a situation similar to the 70s.”
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