Opportunities and Flaws of the Flow Decree and the EU Blue Card
According to ISTAT data, in 2023, the Italian population decreased by approximately 250,000 people compared to the previous year, with a ratio of 1 birth for every 1,8 deaths. This trend results in a reduction in the youth workforce.
Therefore, the number of retirees has increased, with a ratio of approximately 1,3 workers per retired person, which is well below the European average.
This demographic imbalance contributes to the labour shortage, as the demand for workers is not adequately met by the domestic market.
According to data released by the Italian Chambers of Commerce and the Ministry of Labour and Social Policies, there were approximately 205,000 job vacancies in November, with companies facing recruitment difficulties for 47.9% of the total planned hires.
Given these data, the Government has implemented measures that seem aimed at attracting more foreign workers, both for so-called highly qualified professions and for more technical or manual jobs.
Let’s examine what has been done and what is still not working
Highly qualified foreign labour: low numbers and bureaucratic inefficiency
The data shows that during 2023, out of a total of about 39.000 work-related entries, only around 7.000 were highly qualified workers. This data is particularly significant, considering that, unlike unskilled jobs, highly qualified workers are not subject to annual quantitative restrictions imposed by the Flow Decree. In other words, while there are no limits on the entry of highly qualified workers from non-EU countries, the actual numbers are definitely lower than those for non-highly qualified jobs.
The cause of this paradox can be found in the procedural limitations that obstruct the entry of highly qualified workers.
EU Blue Card: Degree or not Degree, what happens?
For example, among the key regulations concerning foreign and highly qualified labour is the regulation of the so-called European Blue Card, a European residence permit issued to non-EU citizens who receive a job offer from an Italian employer.
Originally, this residence permit could only be issued to those holding at least a bachelor’s degree. Starting on 28 March 2024, with the clear intention of attracting more qualified workers from abroad, the Blue Card has been reformed. It is now theoretically accessible even to those who, despite not holding a university degree, have at least five years of professional experience ensuring a level of qualification comparable to a university degree.
However, the lack of clear criteria regarding the meaning of “professional experience comparable to a degree” creates significant uncertainty, which may well discourage employers from investing months of time in the worker’s entry application.
The long processing times of the Prefectures
Indeed, the processing times are long: by law, the Prefecture has up to 90 days to decide on the application. If the outcome is positive, the entry clearance (“Nulla Osta”) will be issued, which can then be used to apply for a visa. The Consulate has 30 days to issue the visa. Once obtained, the worker is allowed to enter Italy, but they must still schedule an appointment at the Prefecture to sign the so-called contract of stay (“contratto di soggiorno”) and obtain the fiscal code. This timeline should also take into account the necessary time to prepare the documentation for the application and start the procedure.
On average, it takes at least 6 months before the foreign worker is allowed to start working. Sometimes it gets even worse. The Prefectures fail to meet the 90-day deadline and applications are either completely forgotten or shelved for a year before anyone works on them. There are no effective remedies for these delays.
The burden of the EU Blue Card, which complicates the procedure
Another major procedural limitation lies in the burden of proving the unavailability of a suitable worker already in Italy by conducting a search through the provincial employment office. This preliminary step takes place through a formal procedure with the employment office even before the application for the EU Blue Card is filed,
The law is of a general nature, but until March 2024 it was largely disapplied by the Prefectures in cases of applications for highly qualified workers. In fact, although in principle the purpose of promoting employment for those already in Italy is worthy of support, the rule represents a serious procedural burden without achieving the purpose it intendes to serve.
In fact, the company that sponsors such a long and complicated visa procedure for a worker is highly motivated to include that specific worker in its workforce, for reasons that go beyond the formal possession of the required qualifications. If the company wanted to select among profiles already available in Italy, it would do so and avoid a long and expensive immigration process.
Moreover, the company can always reject a suitable candidate by discarding the CV as insufficient or by rejecting the applicant after a job interview. Obviously, there is no obligation to hire someone who formally holds the necessary qualifications.
For reasons that remain unclear, the Government, through a recent implementation guideline for the Blue Card, has imposed the fulfilment of this task without any exceptions. This has further extended the time to obtain this work permit.
The risk is that, with the obstacles introduced by this recent guideline added to the pre-existing ones, the new Blue Card, instead of becoming a more widely used tool, will remain “nice to look at but difficult to use”.
Non-qualified work and Flow Decree: too many abuses of the system
Regarding manual and technical jobs Decree for workers who are not highly qualified, the Government has attempted to address the increasing demand for manpower by raising the number of allowed visas yearly. Specifically, in the three-year period 2023-2025, the so-called Flow Decree has planned 136,000 entries per year, with a further increase to 165,000 in 2025.
Despite the increase in the so-called quota (the maximum number of visas allowed yearly), the actual number of entries continues to be well below expectations. In 2023, for example, only 39,000 residence permits for work were issued, a number far below the available quotas.
The causes of this paradox are multiple, but one of the main reasons is a high number of frauds. Many workers enter Italy only to find out that the employer has disappeared without any explanation for the loss of interest in hiring them.
The disappearing sponsors and the rise in irregular workers
In these cases, the process can’t be completed, and the workers either return to their countries or remain in Italy irregularly. This is a very common phenomenon, with continuous first-hand accounts from many people who contact our office seeking a remedy which unfortunately does not exist.
There is also an even sadder aspect. Very often, when the employer disappears, foreign workers report that they have already paid large sums of money to “sponsor their application”.
The Government has implemented some measures to prevent fraudulent practices, such as the pre-filling of applications for early screening and banning employers from submitting new applications for three years if they don’t actually hire the worker. However, strict financial penalties should be implemented to definitely discourage employers who exploit foreign workers wishing to work in Italy and undermine the entire system.
A double blow for entrepreneurs looking to hire
Due to these practices, the process becomes much slower for everyone, as authorities have to handle many applications that are formally correct but essentially fraudulent. Additionally, many entrepreneurs who are truly interested in hiring risk being excluded due to early exhaustion of the allowed quota.
In conclusion, although the Government has made some progress by increasing entry quotas set by the Flow Decree for unskilled workers and expanding the category of highly qualified workers who can enter without restrictions, the bureaucratic barriers, the slow procedures, uncertainties, and risks of abuse explain the significant difficulties in addressing the shortage of workers.
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