In Italy, the annual turnover attributable to irregular work amounts to 68 billion euros, according to a report by the Cgia Research Office. Approximately 35% of this added value produced by the underground economy can be attributed to the regions of the South. However, in recent years, the phenomenon of irregular work has also extended to the Centre-North, with a significant presence in sectors such as housekeeping and caregiving.
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. The sectors most affected by undeclared work are personal services, agriculture, construction, and commerce, transport, and hospitality.
The report reveals that there are just under 3 million people involved in the underground economy in Italy. The Southern region has the highest percentage of involvement at 37.2%, followed closely by other regions such as Campania and Apulia. However, it’s important to note that other regions like Lombardy and Emilia Romagna have also seen an increase in irregularities due to gangmastering activities and exploitation of vulnerable workers during forced labor practices caused by economic crises like pandemics or recessions.
Gangmastering is a long-standing issue affecting immigrants, women and those living in extreme poverty across different industries including agriculture being particularly prone to this phenomenon.
The study highlights that while some areas have seen an increase in control of their economies by criminal organizations leading to forced labor and exploitation of vulnerable workers during economic crises like pandemics or recessions.
It is crucial for governments and policymakers to take action against illegal labor practices not only for workers’ rights but also for workplace safety concerns arising from such practices.
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