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Shadow economy: in Italy it is worth 203 billion, more than the Pnrr

Illegal workers exceed three and a half million - The data, released by Istat, seem dramatic, but in reality they are down compared to the past

Shadow economy: in Italy it is worth 203 billion, more than the Pnrr

In Italy, theshadow economy and illegal activities they are worth everything 203 billion euros, equal to 11,3% of GDP and well over the 191,5 billion of the National Recovery and Resilience Plan. This was announced by Istat, specifying that the survey refers to 2019 (therefore to the pre-pandemic period). The figure seems very high, but in reality it is more than 5 billion euro lower (-2,6%) than the previous year, confirming a downward trend that has been underway since 2014.

In detail, the Institute of Statistics specifies that the shadow economy is worth just over 183 billion euros, while that of illegal activities exceeds 19 billion. The undeclared value added from under-declaration decreased by 3,8 billion euros compared to 2018, that generated by the use of irregular work by 1,2 billion, while the other components recorded a reduction of 0,5 billion. The illegal economy instead marked an increase, albeit limited, compared to the previous year (+174 million).

For the workers, there are 3 million and 586 thousand illegal immigrants, down more than 57 units year-on-year. The incidence of irregular work is more significant in the tertiary sector (16,1%), and reaches particularly high levels in the sector of other personal services (46,4%), where the demand for irregular work performance by families. The presence of irregular workers in Agriculture (18,8%), in Construction (16,3%) and in the commerce-transport-accommodation-catering sector (15,3%) is very significant.

The use of irregular work by businesses and households "is a structural feature of the Italian economy - writes Istat - Job positions carried out without compliance with current tax and social security legislation are defined as irregular, therefore unobservable directly from companies, institutions and administrative sources”, Istat explained.

In 2019 there were 3 million and 586 thousand full-time work units (AWU) in irregular conditions, mainly employed as employees (about 2 million and 583 thousand units). The non-regular component decreased by 1,6% compared to 2018, recording a reduction for the second consecutive year (-1,5% in 2018 compared to 2017).

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