Group 1: Employment Market Overview - Italy's employment rate reached a record high of 62.9% in May, the highest since the current employment data system was implemented in 2004 [1] - Despite the high employment rate, the European Commission downgraded Italy's GDP growth forecast for 2025 from 1% to 0.7% and for 2026 from 1.2% to 0.9%, indicating structural issues in the employment market [1] Group 2: Demographic Challenges - Italy's population is projected to decline from approximately 59 million currently to 54.7 million by 2050 and further to 45.8 million by 2080, leading to significant changes in the age structure [2] - By 2050, the population aged 65 and over is expected to account for 34.6% of the total population, up from 24.3% currently, while the working-age population (15 to 64 years) will decrease from 63.5% to 54.3% [2] Group 3: Youth Employment Issues - The youth employment rate in Italy for ages 15 to 29 is the lowest among major European countries at 34.7%, significantly below the EU average of 49.7% [2] - In 2022, the average annual salary for Italian youth working in non-governmental organizations was €15,616, compared to the overall average of €22,839 [3] Group 4: Economic Growth Projections - Italy is predicted to have the worst population structure in Europe from 2023 to 2040, with a projected 34% decrease in the working-age population from 2023 to 2060, compared to an 8% average decrease across OECD countries [4] - If labor productivity continues to decline at the rate of 0.31% per year, Italy's per capita GDP is expected to decrease by 0.67% annually [4] Group 5: Policy Recommendations - Experts suggest that Italy must implement systemic interventions to address the demographic challenges and improve youth employment, such as incentivizing the hiring of individuals under 35 and providing tax benefits for young enterprises [5] - It is crucial to enhance youth skills to positively impact long-term economic growth [5]