The European and Italian Labor Market in the Era of Artificial Intelligence
In recent years, the European labor market has been undergoing a profound transformation resulting from technological progress, globalization, and demographic changes. The development of artificial intelligence is playing a key role, transforming work practices, employment structures, and required skills.
According to the latest Eurostat data, the unemployment rate in the European Union remains around 5.9%, while in the eurozone it is around 6.2%. Despite the relative stability of the labor market, the situation of young people remains particularly difficult – their unemployment rate in the EU is around 14-15%.
The development of artificial intelligence is impacting the market in a multifaceted way. On the one hand, it increases productivity and creates new jobs, but on the other, it leads to the automation of many professions.
According to the World Economic Forum:
• by 2030, approximately 170 million new jobs will be created
• simultaneously, approximately 92 million positions will disappear
• globally, up to a quarter of positions will change
This means the growing importance of digital and analytical skills, as well as working with artificial intelligence tools.
Italy is among the European Union countries that are slower to adopt new technologies – only about 20% of citizens use artificial intelligence, while the average use of AI in the EU is around 33%.
The younger generation faces a difficult career start, despite their high levels of education. They lack the professional experience most employers expect. The education system does not necessarily meet market needs, resulting in delayed and unstable entry into the job market for young people.
Pros and cons of AI on the labor market, survey “How do you think AI is impacting the labor market?”
Pros of AI
• Increased efficiency and automation of routine tasks
• Emergence of new professions (e.g., AI specialists)
• Greater work flexibility
Cons of AI:
• Risk of elimination of entry-level jobs
• Deepening inequalities among workers
• Need for constant retraining
• Greater job insecurity, especially among young people
Students from both the Italian and our schools participated in the survey, and the results are presented below:
What can we do to help young people?
- European minimum wage for interns – subjecting interns and apprentices to wage controls, ending “experience-based” work.
- AI regulation in the labor market – currently, AI is increasingly used in many companies to evaluate employees and make layoff decisions, which means regulations can limit automated decisions made by AI.
- Mandatory employment of young people in companies – companies above a certain size must employ a certain percentage of young people.
- Introducing a minimum wage for interns and a limit on the number of internships in a company – internships often replace regular work that could be performed by employees with an employment contract.
- Italy is losing many young people due to the problem of economic emigration. The government could introduce financial incentives for returning from abroad, lower taxes for young workers, and relocation support.
