Overview
- Istat estimates the non‑observed economy—the sum of undeclared activity and illegal operations—at €218.2 billion in 2024, equal to about 9.9% of GDP.
- Irregular work expanded in absolute terms to roughly 3.277 million work units, an increase of about 145,000 units or 4.6% from the prior year.
- Value added from irregular employment rose to €80.3 billion, making up 36.8% of the non‑observed economy while under‑declared business income remains the single largest component at €107.6 billion.
- Undeclared activity is concentrated in specific sectors, with the highest incidence in personal services (30.7%), trade/transport/hospitality (18.5%), and construction (17.7%).
- The data point to concrete policy challenges: lost tax receipts, gaps in social protection for undeclared workers, and a need for targeted enforcement and sectoral measures to limit further growth of irregular employment.