Why Italy’s 5.4 Million Foreign Residents are Central to its Future

November 18, 2025

For years, the discourse surrounding immigration in Italy has been dominated by debates on border control and emergency management. However, a deeper, more constructive reality is consistently unveiled by annual economic reports: the established foreign resident population is not a drain on resources, but an indispensable engine driving the nation’s economy, bolstering its workforce, and providing a critical counter-force to severe demographic decline.

The latest official analysis, including data highlighted in reports , confirms that the legally resident foreign community has stabilized at approximately 5.4 million individuals. This figure represents far more than a statistical count; it signifies a massive, active contributor to the entire Italian socio-economic structure.

The €177 Billion Economic Anchor

The most compelling finding relates directly to Italy’s Gross Domestic Product (GDP). Foreign workers generated about €177 billion in added value, an amount equivalent to a robust 9% of the national GDP. This contribution is not spread thin; it is concentrated in sectors that rely heavily on migrant labor, often filling roles that native Italian workers are less inclined to take.

Workforce Reliance: Of the 5.4 million residents, 2.5 million are actively employed, making up 10.5% of the national workforce. This labor force is heavily concentrated in essential, yet demanding, sectors. For example, foreign workers constitute up to 30% of the workforce in personal services (including family care), and their presence is disproportionately high in agriculture (~18%) and construction (~16%). These figures underscore a structural dependency, where the continuous flow and participation of foreign workers are vital to the functioning of key industries.
Fiscal Responsibility: Beyond production, the immigrant community maintains a positive fiscal balance. Foreign taxpayers declare incomes and pay taxes and contributions, creating a net positive impact on public accounts. This surplus helps to finance Italy’s social security and welfare systems, particularly because the foreign population skews younger and is less reliant on pensions and elderly healthcare compared to the aging native population.

The Surge in Migrant Entrepreneurship

Adding further depth to the economic contribution is the remarkable surge in foreign entrepreneurship. While Italian-owned firms have seen a decline over the past decade, the number of migrant-owned businesses has grown significantly.

Currently, there are approximately 787,000 migrant-owned businesses, representing 10.6% of the total entrepreneurial landscape. This growth highlights resilience and a proactive spirit, particularly in regions across the Center-North. These firms are largely active in construction, commerce, and the food industry, providing essential services and driving local economic vitality. The immigrant entrepreneur is increasingly a source of job creation and market diversification within the Italian business fabric.

Countering the Demographic Winter

Perhaps the most critical long-term contribution lies in demographics. Italy faces a demographic “winter,” characterized by low birth rates and one of the highest median ages in Europe. The foreign community acts as a crucial demographic counterbalance.

Reports indicate that immigrants record a significantly higher birth rate—around 9.9 per 1,000 people—compared to the rate among native Italians, which hovers around 6.1 per 1,000. By maintaining a younger average age and higher fertility, the foreign population is essential in mitigating the effects of population decline and ensuring the viability of the future working-age population. The presence of young, active foreign citizens effectively buys Italy time to address its long-term structural demographic challenges.

The Path to Full Potential

Despite the undeniable positive contributions, reports consistently caution that a significant portion of this potential remains undervalued. Many skilled and educated foreign workers face challenges with diploma recognition and social mobility, often ending up in low-skilled, precarious jobs—a phenomenon known as over-qualification.

The challenge for Italian policy now is not merely managing entry, but implementing robust integration strategies that facilitate better recognition of immigrant potential. By moving foreign workers out of statistical concentration in low-wage, low-skill sectors and into more qualified roles, Italy can further boost GDP, increase consumption, and secure its long-term competitiveness. Leveraging the full human capital of the 5.4 million residents is the most immediate and logical path toward sustained economic prosperity.