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In Italy we have an endangered species: the self-employed worker

ItaliaOggi publishes INPS data on the evolution of work in Italy and shows us how there is a species slowly becoming extinct in Italy: the Self-employed Worker, in his traditional dimension of artisan, trader or farmer. Pressured by ever-tighter regulations, skyrocketing social security costs and a lackluster economic situation, the number of this category that once drove Italy is increasingly declining.

So let's take a look at the current trends:

  1. Decline in Self-Employment : Craftsmen, traders and farmers, the typical figures of traditional self-employed workers, have seen a significant decline. In detail, in 2022 compared to 2019, artisans decreased by 3.6%, traders by 2.2%, and farmers by 3.1%. New artisans, those who became artisans less than a year ago, have decreased by as much as 38%. Artisans move forward by inertia, and once they retire they will not be replaced.
  2. Growth of Employed Workers : In contrast to the decline in self-employed workers, employed work is growing. Today it represents 78% of employment, an increase compared to the past. This phenomenon is attributed to the better protections offered to employees.
  3. Increase in members of the separate management : In particular, the number of members of the separate management, known as parasubordinates, is increasing. This category includes administrators, collaborators, doctors, home sellers and professionals without cash. In 2022, there are over 1.5 million taxpayers in separate management, an increase of 5.6% compared to 2021.
  4. Trend towards Private Employment : Private employment is growing, and this phenomenon seems to be unstoppable, even during the COVID-19 pandemic. The preference for salaried work is attributed to the greater security offered by this form of employment and the fact that, often, there is nothing else.
  5. Increase in Contributions Paid : The cost of labour, measured by contributions paid by both employed and self-employed workers, is increasing. In 2022, total contributions paid represent 36.6% of income or salary, up from 2021 and 2019.
  6. Role of the Unions : Cgil, Cisl and Uil play a crucial role in the protection of employees, covering 96% of the total. Trade unions manage 13.5 million employees through their National Collective Labor Agreements (Ccnl). Only 4% rely on contracts concluded by other entities. So it remains curious that the unions support the minimum wage, practically acknowledging that they are not able to do their job…

Despite the decrease in traditional self-employment, the employment rate is 61%, the all-time high, and an increase in the number of INPS members. However, Italy is slowly ceasing to be the country of self-employed workers, and this will certainly have strong social implications. A middle class is dying out and is being replaced by a new working and employed class, which prides itself on its fewer protections. Good luck.

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The article In Italy we have an endangered species: the self-employed worker comes from Economic Scenarios .

This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/in-italia-abbiamo-una-specie-in-estinzione-il-lavoratore-autonomo/ on Mon, 18 Sep 2023 09:00:58 +0000.