The workforce aging and challenges for policy and for business. The case of Italy

Abstract

Across Europe, the working age population is decreasing and aging. In this study, with reference to Italy, we analyze the main demographic trends underlying these processes. By using data from the continuous Labor Force Survey, we show the effects of the overall population dynamics on workforce age structure and its composition by professional activities and economic sector. We argue that the observed changes in the labor market are only partially due to demographic trends since they are strictly intertwined with the rigidity of the Italian economic system. We then illustrate the results of two sample surveys conducted among large and small-medium Italian enterprises, respectively. The main result is that the Italian businesses are moderately aware of the aging process of their human resources, and only a few are worried about it. Only few larger companies are actively implementing strategies of age management in order to cope with the issue. Finally, we discuss the implications for the policy of the above results, also in the light of recommendations from the international organizations.