The Report

Welfare, the gaps between North and South are growing: Trento first, Calabria last

According to the Welfare Italy Index 2025, welfare accounts for 16% of GDP compared to a Eurozone average of 12.3%, below the European average for spending on education at 3.9% of GDP (against 4.6%) and on social policies at 4.9% (against 7.3%)

by Giorgio Pogliotti

(AdobeStock)

4' min read

Translated by AI
Versione italiana

4' min read

Translated by AI
Versione italiana

The regional gap in welfare benefits is widening, with an increasing polarisation between northern and southern Italy. The distance between the best and worst region in 2024 reaches 23.6 points, an increase of 9% compared to 2023.

The best and worst regional performances

According to the Welfare Italy Index 2025 - a synthetic indicator that takes into consideration the areas of social policies, health, welfare and training -, the administration with the highest score is the autonomous province of Trento (83.8 points), followed by the autonomous province of Bolzano (80.4 points) and Friuli-Venezia Giulia (78.3). The bottom of the ranking is occupied by Campania (62 points), Basilicata (60.7 points) and Calabria (60.2 points), which is confirmed in last place in both the 2024 and 20o25 surveys.

Loading...

This, in a nutshell, is the picture that emerges from the 2025 Report of the Think Tank "Welfare, Italy", an initiative promoted by Unipol in cooperation with Teha Group, illustrated in Rome during the Forum entitled "Human Capital: the new lever of national competitiveness". The Index is a monitoring tool, based on 22 performance indicators, which assesses, within a synthetic indicator, both aspects linked to welfare spending and aspects linked to the results that this spending produces.

In 2024, welfare absorbed EUR 669 billion, 60% of public spending

The imbalances are also confirmed by broadening the look at the national level in the composition of expenditure, oriented towards the protection of the oldest age group: in 2024 welfare - in its four components health, social policies, social security and education - absorbed 669.2 billion euro, equal to 60.4% of public expenditure. However, looking at the specific weight of each item, while welfare accounts for 16% of GDP, against a Eurozone average of 12.3%, we remain below the European average for spending on education (3.9% of GDP against a Eurozone average of 4.6%) and social policies (4.9% of GDP against 7.3%).

Early school leaving is still high, affecting 9.8 per cent of 18-24 year-olds (over 400,000 young people) and we still have a low share of 25-34 year-old graduates (31.6 per cent against a European percentage of 44.1 per cent), we are at the top for youth unemployment at 19.3 per cent, and at the bottom of the league table for female employment (below the EU average by over 13 points). The flight of graduates (over 49,000 in 2024), moreover, has an estimated cost of EUR 6.9 billion per year for the country system. After all, Italy is among the European countries with the least capacity to attract foreign university students (it is fourth to last in Europe) and has very limited quotas of highly qualified immigrant workers. According to the report's authors, what is needed are "targeted incentives, internationalisation of universities and research, competitive career paths and enabling conditions to retain and attract high value-added human capital"

The demographic factor: incidence of over-65s rising to 34.9% by 2050

This scenario is weighed down by the demographic factor - with the progressive ageing of the population and the reduction of the working-age group - which, according to the authors of the report, makes it necessary to "rebalance spending towards the enabling factors of growth": education and skills, active social policies, health and prevention, in order to strengthen productivity and the well-being of the community.

After more than a century of growth, Italy's population has been decreasing since 2014 at an average annual rate of -0.4% over the decade 2014-2024. In 2024 there was a new all-time low in births (370,000), with a natural balance of -281,000. Demographic projections indicate that, in Istat's median scenario, the population will fall to 54.8 million in 2050 and 46.1 million in 2080, with the incidence of the over-65s rising to 34.9% in 2050. This implies lower contribution base and higher demand for social and health services: a further reason to invest in Human Capital as an axis of sustainability.

 

Almost a quarter of Italians at risk of poverty or social exclusion

 

In 2024, 23.1% of the Italian population is at risk of poverty or social exclusion, one of the highest values among the 27 EU countries. The national figure has strong territorial differences, with regional performances close to the best European standards and areas where the share of vulnerable population is far higher.

Another important welfare item is health. Prevention is a crucial lever for welfare sustainability because it reduces systemic costs, improves health outcomes and enables people to realise their full potential throughout their lives. International evidence estimates up to EUR 14 return for every euro invested in preventive healthcare. Despite this, in 2024 only 5.6% of public health expenditure was allocated to prevention (7.7 billion out of 137.4). The Report calls for more screening, vaccinations, timely access to innovative therapies, the development of active ageing pathways and the promotion of organisational and technological models that support continuity of care.

Aligning Italy to European benchmarks, some 2.8 million more employed

'A country like ours, which is a small country compared to the world's greats,' stresses Carlo Cimbri, chairman of Unipol Assicurazioni, 'cannot compete on quantity but on quality. We must focus on quality to compete. We need to qualify our people by rewarding and valuing merit'. According to the Think Tank's estimates, by aligning Italy with European benchmarks on youth employment, women, foreigners, and the participation of 60-69 year-olds, an increase in employment of about 2.8 million could be triggered, generating GDP growth of up to 226 billion euros, or +10.6% over current levels.

What is needed, therefore, is a 'national strategy for the valorisation of human capital', articulated in different directions concerning the education system, the world of work, and social cohesion with the aim of developing the skills present in our country.

Copyright reserved ©
Loading...

Brand connect

Loading...

Newsletter

Notizie e approfondimenti sugli avvenimenti politici, economici e finanziari.

Iscriviti