This report provides an overview of the situation of third-country nationals (TCNs) in the Italian labour market in 2023. Its creation was sponsored by the Directorate of Immigration and Integration of the Ministry of Labour and Social Policies.

According to the report, as of January 2023 there are currently 3.2 million TCN residents in Italy. The largest national groups are those from Morocco (399 000; 10.7%), Albania (390 000; 10.5%) and Ukraine (384 000; 10.3%). 2.4 million of these TCNs are currently employed, representing more than 10% of the country's total work force.

Other key figures shared by the report include the following:

• Between 2021 and 2022 the number of residence permits issued to TCNs in the country rose dramatically from 242 000 to 449 000, representing an increase of 85.9%.
• In 2023 the TCN employment rate grew to 60.7% (this figure stands at 61.5% for Italians). The unemployment rate dropped to 11.4% (7.2% for Italians), and inactivity to 31.5% (33.6% for Italians). 
• The sectors with the highest proportions of foreign workers are personal and collective services (30.4%), agriculture (18%), catering and tourism (17.4%), and construction (16.4%). 
• The report highlights a clear gender divide that sees TCN women penalised across all indicators: their employment rate stands at 45.6%, their unemployment rate at 13.8%, and their inactivity rate at 46.9%. 
• TCN workers in Italy tend to have a lower qualification level and a lower annual salary on average than native workers. Further, the NEET rate of young people in this group stands at 26.5% and the school dropout rate at 29.5%.
• 33.2% of families composed soely of TCNs are living in absolute poverty, compared with 6.3% of Italian families.