Tertiary sector

Low-paid jobs in tourism: over 70 per cent of employees earn less than 14,800 euros a year

According to a study by Filcams Cgil, almost half of workers in the service sector (47.51 per cent, to be precise) are in the ‘working poor’ category. The widespread prevalence of involuntary part-time work has an impact on wages

by Giorgio Pogliotti

 stock.adobe.com

4' min read

Translated by AI
Versione italiana

4' min read

Translated by AI
Versione italiana

Almost half of those employed in the service sectors (47.51% to be precise) – namely retail, services and tourism – are working poor: they earn an annual wage of €13,950 or less, the wage poverty threshold (equivalent to 60% of the median wage), which rises to €14,800 for those who have worked for at least twelve weeks during the year. In Southern Italy, more than three in five workers in the service sector are considered to be in the working poor category.

This is highlighted in the Filcams Cgil report on low-paid work, which examines the sector that has been the driving force behind the labour market for years, given that the majority of new hires are in this very sector, driven by low value-added services in tourism, accommodation and catering, Within this macro-sector, a wide range of conditions emerges: the worst situation is found in tourism, where 71.22 per cent remain below the poverty line – a figure that affects four in five workers in the South and on the islands. One in two workers employed in services, cleaning, multi-services and catering are ‘working poor’.

Loading...

Among women, almost 53% in the service sector are working poor

 The research was conducted on a sample of approximately 6.3 million people (96 per cent of the total), for whom the necessary information is available to reconstruct the distribution of income from employment. More specifically, the survey refers to the concept of a ‘working poor’ individual, whose annual earnings are equal to or less than 60% of the national median annual earnings, corresponding to 13,950 euros per year for those who have worked at least one week, and €14,800 per annum for those who have worked for at least 12 weeks).

Taking into account those who have worked for at least one week across all service sector industries covered by the survey, the percentage of employees living below the poverty line stands at 47.51 per cent, with significant differences by gender (men 40.92 per cent – women 52.93%) and geographical area (North-West 38.48%, North-East 43.63%, Centre 47.53%, South and Islands 61.47%). When the sample is restricted to those working for at least 12 weeks, the figures for 2024 are relatively lower. The incidence of in-work poverty, overall, stands at 41.71% in this case, with significant disparities by gender (men 33.70% – women 48.32%) and by geographical area (North-West 33.02%, North-East 37.09%, Centre 42.23%, South and Islands 56.35%).

In terms of trade, the wide regional disparity disadvantages the South and the Islands (48.5% below the poverty line)

In the retail sector, amongst those who have worked for at least one week, the overall incidence of in-work poverty stands at 31.16 per cent. There remains a marked gender gap (25.33 per cent for men; 36.60 per cent for women) and regional disparities, with rates of 22.39 per cent in the North-West, 25.48 per cent in the North-East, 31.29 per cent in the Centre, and as high as 48.52 per cent in the South and on the Islands.

In the sample of employees who have worked for at least 12 weeks in the retail sector, the incidence of in-work poverty stands at 26.89% (20.40% for men; 33.05% for women), with a gender gap of 12.65 percentage points. At regional level, the incidence is lower in the North-West (18.44%) and the North-East (20.94%), intermediate in the Centre (27.35%) and typically higher in the South and the Islands (44.64%).

Wages in the tourism sector are being affected by the increasing prevalence of part-time work

In the tourism sector, the increasing prevalence of short-term employment contracts is associated with lower pay and a higher incidence of in-work poverty. For those who have worked for at least one week, the figure is particularly high, standing at 71.22% (66.72% men; 75.32% for women), with a gender gap of 8.60 percentage points; geographically, the figures are high across the whole country, standing at around 66% in the North (66.10% in the North-West; 66.44% in the North-East), 69.39% in the Centre, and reaching 81.14% in the South and on the Islands.

Among workers who have worked for at least 12 weeks during the year, the incidence of in-work poverty stands at 64.69% (59.00% for men; 69.94% for women), with a gender gap of 10.94 percentage points; at a regional level, the figures fall below 60 per cent in the North (59.57 per cent in the North-West; 58.83 per cent in the North-East), stand at 63.08 per cent in the Centre and reach 76.20 per cent in the South and on the Islands.

A 15-point gender pay gap in the services sector, to the detriment of women

The prevalence of low-paid work in the services sector stands at 52.60% among those who have worked for at least one week (42.06% of men; 57.99% for women), with a gender gap of 15.93 percentage points; at regional level, the figures are just under 50% in the North (49.65% in the North-West; 48.91% in the North-East), exceed this threshold in the Centre (52.66%) and reach their highest levels in the South and the Islands (58.90%).

In the sample of employees who worked for at least 12 weeks in 2024, the incidence of in-work poverty stands at 50.24 per cent, and the gender gap is close to 20 percentage points (37.25 per cent for men; 56.75% women); at regional level, the figure ranges from 46.89% in the North-West and 46.23% in the North-East to 50.87% in the Centre, rising to 56.80% in the South and on the Islands.

Russo (Filcams): Involuntary part-time work has now become a structural issue

“Involuntary part-time work has now become a structural reality that results in low wages and a state of constant precariousness,” according to Fabrizio Russo, General Secretary of Filcams Cgil,

The regional disparity, which penalises the South, is compounded by a gender disparity that is most pronounced in the sectors of outsourced care work, involuntary part-time work and low-bid contracts, all of which affect female employment. ‘We are facing a genuine emergency: almost one in two people earns less than 15,000 euros a year,’ adds Russo, ‘a figure that reveals specific organisational choices, business models geared towards cutting labour costs, and a lack of contractual safeguards that has persisted for far too long. The renewal of national collective agreements remains the first line of defence against low-paid work: this is where we will start again in the next round of collective bargaining, which in 2027 will see us at the negotiating table for the entire distribution and services sector, to restore dignity and recognition to the people we represent.”

Copyright reserved ©
Loading...

Brand connect

Loading...

Newsletter

Notizie e approfondimenti sugli avvenimenti politici, economici e finanziari.

Iscriviti