Italy to tackle labour shortage following the Hungarian scheme

There have been mixed reactions to the Italian government’s decision to gradually increase the number of work permits issued to non-EU workers. Is Italy following Hungary’s example?

As we have reported HERE, Asian workers are flooding Hungary to fill the gaps in the country’s labour market. According to napi.hu, Italy has been struggling with the same labour shortage issue. The right-wing cabinet has been forced to change its course, as the attempt to increase the country’s birth rate and to involve more women in the labour market has not met the expected results. Giorgia Meloni, the Italian PM, has faced harsh judgement for her measures. As the leader of the right-wing Fratelli d’Italia party, she has been emphasising the importance of supporting Italian families to increase the nation’s birth rate. She believed that demographical issues should be resolved within the borders of the country and not by opening the doors to immigrants.

Labour shortage

The Italian economy has been on the recovery path following the Covid-19 pandemic. However, the Bank of Italy has warned the government that a shortage of skilled labour could jeopardise the progress. The industrial areas of Northern Italy have been facing a serious shortage of skilled workers for a long time. Representatives have already made a complaint to the government, saying that they need foreign workers. Despite that, the government tried to solve the problem by attempting to include more Italian women in the labour market. Now, other sectors, such as tourism, are also struggling with finding skilled workers.

Hungary’s solution

Similarly, to Italy, Hungary was critical about accepting non-EU workers. However, the labour shortage turned so severe that the country was left with no other choice. There are constantly new businesses and investments popping up in Hungary, thus the demand for workers will only increase. A new legislation has been accepted a short while ago concerning the maximum duration of stay of foreign workers. Guest workers will be allowed to stay in Hungary for up to three years. The residence permit will be valid for a maximum of two years, renewable for one more year.

Italy is next

Prior to the Covid pandemic, Italy only issued less than 31 thousand work permits per year. Now, the number has increased significantly. This year, there have been 82 thousand approved work permits so far. In addition to that, more than 40 thousand requests are to be approved by the end of the year. The Italian government is planning to increase the number of work permits year by year, allegedly aiming at 165 thousand by 2025. Italy welcomes skilled workers, such as fishermen, plumbers, nurses, bus drivers and construction workers. A certain number of permits will be reserved for each country. An agreement will be also signed with the leaders of these countries to combat illegal migration.