REPORT FORITALYJANUARY 2026 © 2026The World Bank1818 H Street NW, Washington DC 20433Telephone: 202-473-1000; Internet:www.worldbank.org Some rights reserved. This work is a product of The World Bank. The findings, interpretations, and conclusionsexpressed in this work do not necessarily reflect the views of the Executive Directors of TheWorld Bank or the governments they represent. The World Bank does not guarantee the accuracy, completeness, or currency of the data includedin this work and does not assume responsibility for any errors, omissions, or discrepancies in theinformation, or liability with respect to the use of or failure to use the information, methods,processes, or conclusions set forth. The boundaries, colors, denominations, links/footnotes andother information shown in this work do not imply any judgment on the part of The World Bankconcerning the legal status of any territory or the endorsement or acceptance of such boundaries.The citation of works authored by others does not mean The World Bank endorses the viewsexpressed by those authors or the content of their works. Nothing herein shall constitute or be construed or considered to be a limitation upon or waiver ofthe privileges and immunities of The World Bank, all of which are specifically reserved. Rights and Permissions The material in this work is subject to copyright. Because The World Bank encouragesdissemination of its knowledge, this work may be reproduced, in whole or in part, fornoncommercial purposes as long as full attribution to this work is given. Attribution—Please cite the work as follows: “World Bank. 2026.An Assessment of Italy’s LaborMarket: In Support of the Italy-Tunisia Global Skills Partnership.© World Bank: Washington, DC.” Any queries on rights and licenses, including subsidiary rights, should be addressed to World BankPublications, The World Bank,1818 H Street NW, Washington, DC 20433, USA; fax: 202-522-2625; e-mail:pubrights@worldbank.org. Contents Acknowledgments.................................................................................................................5Executive Summary................................................................................................................6The Promise of the Global Skills Partnership Model...............................................................7A Summary of Key Findings.................................................................................................8Demographic and Labor Market Fundamentals.................................................................8Private Sector Characteristics and Potential to Create Jobs................................................8Critical Occupations Facing Labor Shortages.....................................................................9Potential for a GSP with Tunisia...........................................................................................9Abbreviations.......................................................................................................................11Structure of the Report.........................................................................................................121.Macroeconomic, Demographic, and Labor Market Context............................................141.1.Macroeconomic Outlook........................................................................................141.2.Demographic Outlook............................................................................................181.3.Labor Market Outlook............................................................................................262.Critical Occupations Facing a Labor Shortage...............................................................342.1.Conceptual Framework of the Labor Market Assessment.........................................342.1.Descriptive Analysis..............................................................................................352.2.The Critical Occupations List...................................................................................352.3.Data Sources........................................................................................................423.Analysis of Labor Demand............................................................................................453.1.Private Firms in Italy: Characteristics and Job Creation Potential...............................453.2.Sectoral Dynamics of Job Creation and Contraction..................................................493.3.Occupational Dynamics of Job Creation and Contraction...........................................533.4.Unfilled Labor Demand..........................................................................................57Trends in Sectoral Job Vacancy Rates..............................................................................593.5.Looking Ahead: Emerging and Declining Sectoral Labor Demand...............................62From Sectoral Demand