Italy has recorded the steepest decline in real wages among G20 nations since 2008, with an 8.7% drop in purchasing power, according to the International Labour Organization (ILO).

While countries like Germany and France saw wage increases of nearly 15% and 5% respectively, Italy's wages have struggled to keep pace with inflation.

Despite a 2.3% wage growth in 2024, it remains insufficient to recover losses from years of high inflation.

Structural issues, such as low productivity, limited technological innovation, and inadequate worker training, have exacerbated the problem.

Additionally, wage disparities persist, with migrant workers earning 26% less than their Italian counterparts and women facing significant income gaps.

The ILO suggests that Italy's collective bargaining system and lack of a legal minimum wage have failed to protect workers' purchasing power.