Italy is held back by 2.6m people who have given up on work

The proportion of people active in the Italian labour market is among the lowest in Europe

Unlocking the jobs potential trapped in the inertia of the euro zone’s third-biggest economy is one of the few options available to fight the consequences of a demographic decline so stark that the world’s richest man, Elon Musk, has warned the country risks having no people left.

In a litany of woes Bank of Italy Governor Ignazio Visco listed this week, the sheer number of his fellow citizens who don’t bother seeking work was especially bleak.

The proportion of people active in the labour market is among the lowest in Europe, he complained to the country’s economic elite gathered in the gold-painted Shareholders’ Hall of Palazzo Koch, his institution’s home in Rome. Worst affected is the poorer south of Italy, where the governor hails from.