Irregular work turnover in Italy

The annual turnover attributable to irregular work in Italy amounts to 68 billion euros. Approximately 35% of this added value produced by the underground economy can be attributed to the regions of the South, as highlighted in an analysis conducted by the Cgia Research Office. The report also reveals that there are just under 3 million people involved in the underground economy in Italy, with the South having the highest percentage at 37.2% of the total.

However, the phenomenon of irregular work has now also extended to the Centre-North, with a significant presence in the services sector, such as housekeepers and carers, where the irregularity rate reaches 42.6%. Other sectors affected by undeclared work include agriculture with 16.8% and construction with 13.3%. In 2021, the added value produced by irregular work in Italy was distributed as follows: 23.7 billion euros in the South, 17.3 in the Northwest, 14.5 in the Center, and 12.4 in the Northeast.

When looking at the distribution of irregular workers across regions, the South has the highest number with 1,061,900, followed by the Northwest with 691,300, the Center with 630,000, and the Northeast with 464,900. The sectors most affected by undeclared work are personal services, agriculture, construction, and commerce, transport, and hospitality, with varying rates of irregularity.

After the economic crisis caused by the pandemic, some areas of the country have seen an increase in the control of the economy by criminal organizations, leading to forced labor and exploitation of vulnerable workers. Gangmastering, particularly in agriculture, has been a long-standing issue in Italy, affecting immigrants, women, and those in extreme poverty. The Cgia reports that the phenomena of illegal labor have become more widespread, posing risks not only to the workers but also to workplace safety.