Economy

Italian wages are rising, but the public sector is lagging behind

Wages are growing in Italy, slightly and not for everyone, but they are increasing and beating inflation. In the first half of the year, the average hourly wage marked a +3.1% compared to a year ago (Istat data). But the increase is not for everyone. The private sector is benefiting most, and in the public sector the failure to renew contracts still weighs. In addition, there is the unknown of the workers involved in the crisis tables at the Ministry of Enterprise and Made in Italy. Here the Cgil speaks of “alarm”.

In June, the salary increase was 1.2% compared to May and 3.6% compared to June 2023. The trend increase was +4.9% for industrial employees, +3.7% for private service employees and +1.6% for public administration workers. Istat numbers highlighted a small recovery in household purchasing power, thanks to salaries that increased, in the second quarter of 2024, by +4.1% in the private sector. An increase that gives oxygen to consumers, given inflation (IPCA index +0.9%). But salary growth does not concern everyone indiscriminately. Salaries increased especially in the industrial sector thanks to contract renewals. Salary increases also in the tertiary sector, where contract renewals for example in credit, insurance and trade had an impact. “This phase of recovery of wages with respect to inflation should consolidate in the coming months, in light of the closure of further renewals in the service sector,” Istat experts claim. The largest trend increases are seen in the wood, paper and printing sectors (+8.5%), credit and insurance (+7.1%) and the metalworking sector (+6.4%). The increase is instead zero for private pharmacies, telecommunications, ministries, law enforcement, armed forces and firefighter activities.
Handbrake for public administration salaries, pending renewals for the three-year period 2022-2024. Here, salary growth is supported exclusively by the provision of contractual vacation allowances to employees of non-state administrations.

The main problem is the still missing 34 renewals for 4.7 million workers, 36% of the total. Istat has calculated that the average waiting time has decreased. In June 2023, workers waited 29.2 months to have it, today it has dropped to 27.3 months. In the Public Administration, however, the contracts have all expired. And there is another issue on the horizon: the crisis tables opened at the Ministry of Enterprise and Made in Italy. The Cgil has raised the alarm: in 7 months there are 2,500 more workers at risk. Bringing the number of jobs at risk to at least 60,000. To these, according to the union’s estimates, are added another 120,000 workers at risk in the sectors in crisis for the management of production transitions or reconversions. In addition, the regional crises: on the tables of Puglia and Veneto alone, a further 32,000 workers with bated breath. A few days ago, Minister Adolfo Urso announced the rescue of the Marelli plant in Crevalcore, taken over by Tecnomeccanica. 152 jobs saved. Excellent, according to the unions too. But there are many open tables and more are being added continuously. There are more and more of them who underline the need for an industrial policy for Italy and for Europe as a whole.