BRIEF DESCRIPTION OF THE COUNTRY'S RELATIONSHIP WITH SDG 8

As one of the largest European economies and an important manufacturing hub for advanced, high-quality goods and services, Italy plays an important role in the achievement of SDG 8. The Italian government has recently reaffirmed its commitment to the 2030 Agenda in its latest Voluntary National Review, stressing the need to pursue innovations in governance, strengthen international partnerships for sustainable development, and focus on the needs of younger generations (Government of Italy, 2026a). With respect to SDG 8’s targets, Italy has managed to make important progress over the past few years, maintaining steady GDP per capita growth while simultaneously reducing its unemployment rate to commendable levels by historical standards (United Nations Department of Economic and Social Affairs, n.d.). However, as the performance of the Italian labour market improves, the true extent of persisting structural weaknesses is becoming increasingly clear. Despite the progress made, employment rates remain lower than international standards, too many young people drop out of school and productive employment entirely, and productivity growth remains limited (Organisation for Economic Co-operation and Development [OECD], 2026a, p. 1; OECD, 2026b, pp. 14, 17).

CURRENT CHALLENGES AND RECENT DEVELOPMENTS

Italy’s labour market has experienced a notable improvement in recent years. Over the last decade, the employment rate has grown by more than 7 percentage points, reaching 67.1% in 2024, while the unemployment rate has steadily declined, falling to 6.5% in 2024 (Government of Italy, 2026b, p. 123). Moreover, despite the global shocks that have affected the economy worldwide, Italy’s economic growth has been remarkably resilient, growing steadily since the end of the COVID-19 pandemic (OECD, 2026b, p.11).

As Italy’s long-standing challenge of high unemployment finally comes to an end, with the Italian unemployment rate now being close to the EU’s average rate, Italy’s chronically low employment rate is instead becoming one of the country’s main challenges (Istituto Nazionale di Statistica, 2026, p. 76). As reported by the OECD (2026a), Italy’s employment rate reached 62.8% in the first quarter of 2026, which was still 9.3 percentage points below the OECD average (p. 1). Concerningly, the employment rate for young individuals aged 20 to 24 is even lower, reaching just 35% in 2024, whereas 20.3% of young Italians aged 15 to 24 were estimated to be unemployed in the same year, signalling a particularly precarious situation for Italian youth in the area of decent work for all that is hidden behind aggregate national statistics (Government of Italy, 2026b, p. 123). 

Low employment levels become particularly concerning when considering Italy’s rapidly ageing population and the increasing fiscal pressure fuelled by rising pension costs, all while Italy’s margin for action remains constrained by the country’s considerable public debt (OECD, 2026b, pp. 12-13). Therefore, decisive action is needed to prepare the country for labour shortages in the near future and to ensure Italy’s fiscal sustainability amidst rising pension costs. This could include decisive fiscal reforms, revising labour market regulations, and making the country more attractive to young workers (OECD, 2026b, p. 13).

In fact, Italian youth are currently struggling to access decent work and returns to tertiary education remain low relative to other European countries. Beyond the concerning unemployment rate among young individuals, the share of Italians aged 15 to 24 who were not in employment, education or training stood at 15.2% in 2024, higher than in virtually any other European country except Romania (Government of Italy, 2026, p. 123). The difficult situation faced by young people in the Italian labour market, characterised by low wages, a high incidence of temporary contracts, and the expectation of a slow career progression, pushes many to emigrate or stay out of the workforce entirely, making Italy’s demographic decline even more acute (OECD, 2026b, p. 14).

Moreover, productivity growth in Italy remains limited, hindering innovation and weakening the economy’s ability to sustain economic growth over the long term. While labour productivity tends to be higher than the EU average in larger Italian firms, the disproportionate number of smaller, less productive firms in the Italian economy pushes aggregate productivity measures down (OECD, 2026b, p. 17). 

LIST OF REFERENCES AND USEFUL LINKS

Government of Italy. (2026a). Italy VNR 2026: Main Messages. United Nations High-Level Political Forum on Sustainable Development. https://hlpf.un.org/sites/default/files/vnrs/2026/VNR%202026%20Italy%20Main%20Messages.pdf

Government of Italy. (2026b). 2026 Voluntary National Review. United Nations High-Level Political Forum on Sustainable Development. https://hlpf.un.org/sites/default/files/vnrs/2026/VNLYR_IT_2026.pdf

Istituto Nazionale di Statistica. (2026). Rapporto SDGs: Informazioni Statistiche per l’Agenda 2030 in Italia: Edizione 2026. https://www.istat.it/wp-content/uploads/2026/07/Rapporto-SDGs-2026-Ebook.pdf

Organisation for Economic Co-operation and Development. (2026a). OECD Employment Outlook 2026: Italy. https://www.oecd.org/en/publications/oecd-employment-outlook-2026_9c4f5c3e-en/italy_ddc2139a-en.html

Organisation for Economic Co-operation and Development. (2026b). OECD Economic Surveys: Italy 2026. https://doi.org/10.1787/539538b2-en

United Nations Department of Economic and Social Affairs. (n.d.). Country Profile: Italy. Retrieved September 7, 2026, from https://unstats.un.org/sdgs/dataportal/countryprofiles/ita#goal-8