Recent statistics released by Europe’s statistical bureau Eurostat revealed that salaries in Italy are amongst the lowest in Europe.
Growth in salaries in Italy between 2005 and 2009 was a measly 3.3%. By way of comparison, in the same period in Spain, salaries grew by almost 30%. Even crisis struck Portugal managed to increase its workers pay by over 20%.
The reason for such low salaries in Italy, stated Labor Minister Elsa Fornero, is one of poor productivity. Italians, she stated, need to become more productive. In a round about sort of way, Fornero implied Italians are lazy. Is this true?
Well, how about fighting a little statistical fire with some more statistical fire, fueled by the very same source as the figures on low earnings in Italy – Eurostat?
Let’s see how Italy shapes up on the productivity front.
Italians More Productive Than Germans
According to Eurostat Labor productivity per person employed figures for the period 1999 to 2010, productivity in Italy is not that bad. Indeed, in 2010, Italians (109.6) were more productive than those masters of efficiency, or so the stereotype goes, the Germans (105.3).
Dig further back in time, to 1999, and productivity levels in Italy were much higher than in Germany, France, the United Kingdom and a good few other countries in Europe.
What is clear from the Eurostat Labor productivity statistics, is that while productivity levels in Italy have been falling, they are higher than in Portugal and in Spain and are still much higher than in Greece.
The map below shows productivity levels in Europe. Green countries are productive nations. The darker the green, the greater the productivity.
The Most Productive Country in Europe
Luxembourg is the most productive country in Europe and has been so since 1999.
How does the USA Shape Up?
Very well. The United States is not in the same league as Luxembourg, but at a figure of around 140 since 1999, Americans appear to be consistently more productive workers than their European counterparts. Incidentally, in 1999, the figure for labor productivity in the USA was 144.1. Italy was at 128.9 in 1999.
And Italy’s Problem Is?
Primarily, one suspects, Italy suffers from a lack of organization, reams of red tape, poor training and government policy which has done little or nothing to promote growth, such as forcing businesses to pay suppliers within 30 days, for a start.
Productivity levels in Italy seem to have fallen greatly in the new millennium. For a large chunk of the period, the Prime Minister was one Silvio Berlusconi who seemed to be more concerned with things like partying, than with helping Italy’s economy maintain post 2000 levels of productivity. A case of counter-productive politics?
What Minister Elsa Fornero needs to do is to give Italians something to produce – a rise in productivity levels, which is not as low as salary figures suggest, will most likely follow.
Upping salaries in Italy may also encourage workers to work at 1999 levels and will prevent super-productive and intelligent Italians from leaving Italy for jobs in countries where their productivity is appropriately rewarded. Of course it is no good producing huge quantities if nobody knows about the goods being produced: they will not sell – this comes to another all Italian issue – that the Boot does not know how to market itself effectively.
The problem is not that Italians are lazy: they simply do not have enough to do. Give them enough, Ms Fornero, and Italy could be the number one economy in Europe.
Here is a data table of Eurostat productivity figures.
Hans says
What utter rubbish. Lies, damned lies, and statistics. If italy has such high productivity, how come their economy is in such a mess? They are lazy, inefficient and corrupt. Too busy with looking good, living the dolce vita and eating mama’s pasta. What a bunch of losers. I fucking hate them. Like the other southern europeans ( Spain, France etc) – suckling on the EU teat – and fed by the hard-working, fiscally responsible northern europeans. Good place to go on holiday, shit place to do business.
Elizabeth says
Alex, do you think that the fact that Italy is traditionally not really a meritocracy has anything to do with it? And the fact that pay raises–when they do occur, you know, once in a blue moon–are given to every employee in a given category and not necessarily to the one who is doing a far more outstanding job? I sometimes think it’s simply human nature to be a more productive and industrious worker if one is paid a decent, livable salary to begin with–and that the hope of eventual recognition, or even promotion, is based on what you know rather than who you know.
Alex Roe says
Hi Elizabeth,
Yes, Italy not being a meritocracy does have something to do with it, I’d say. I do know that some good employees are treated well by some companies. However, if an employee has been “recommended”, he or she is more likely to be treated favorably and “recommended” employees cause bad blood in organizations.
I’d say you are right to think that people will be more prepared to work hard in the knowledge their efforts will be acknowledged by more than a pat on the back. In Italy at present, some employees work very hard for very little, or sometimes zero, money in the vain hope they may be offered a full time job. Unscrupulous employers do take advantage of this and can keep people hanging on. One case I heard of involved an intern who was not paid anything. This intern’s boss was very unhappy when he said no thanks to an unpaid extension of his internship!
Some companies are taking advantage of Italy’s weird employment contracts to exploit employees and some businesses use the fact they can get away with paying peanuts to keep profits high. Eventually, of course, employees get wise to the dodgy treatment and stop working as hard – and who can blame them?
The proposed reforms to Italy’s labor laws may mean companies pay more, but I would not bank on it. It is also likely that certain employers will take advantage of laws which allow them to sack people more easily to hang a sword of Damocles over employees’ heads.
There is also the problem that some employees take advantage of permanent work contracts and back peddle.
New legislation needs protect employees from dodgy employers and protect employers from dodgy employees. A more competitive job market with more jobs on offer might lead to an increase in pay levels too.
The road ahead is a long one – but good Italian employers will find good Italian employees are productive.
Best,
Alex
paciscor says
Are we lazy? Yes, we are, but we hide it very well for fear of making a “brutta figura”! :oP
Alex Roe says
Well, I know some of you are lazy! 😉
Don’t worry, I won’t tell everybody you are one of the lazy ones!
Ciao, ciao,
Alex