Industry insights and figures Human health and social work activities

Operating margin
29.9 %
▼ -1.2pp
2022
Companies
362841
2023

Key insights Human health and social work activities

Actionable signals from current data
IT
Average operating result: 29.9% of revenue (2022).
Personnel costs: 26.5% of revenue (2022).
Number of companies: 362,841 (2023).

Sector outlook Human health and social work activities

Automated analytical commentary based on the most recent Eurostat figures

Industry overview

The Human health and social work activities sector across Italy comprises approximately 349,325 enterprises employing about 689,034 people and generating €67.3 bn in net turnover in 2022. The average enterprise size is 3 employees per firm. This is a useful yardstick when assessing whether your own operation sits within the typical scale band of the sector.

Profitability

With a robust operating margin of 29.9% of revenue in 2022, the sector reports €20.1 bn of gross operating surplus (Eurostat's EBITDA-equivalent, before depreciation). This figure provides the headline benchmark against which an individual operator can sanity-check their own bottom line, values significantly below indicate cost or pricing pressure, those above suggest competitive advantage worth defending.

Cost structure

The Human health and social work activities cost mix is reasonably balanced: cost of revenue at 43.8%, personnel at 26.5% and energy at – of turnover. Without a single dominant cost driver, margin management requires attention across the full operating envelope rather than focus on any one line.

Productivity & human capital

Each employee in the Human health and social work activities sector generates approximately €65,000 of net turnover against a labour cost of €12,000, yielding a productivity-to-cost ratio of 5.4. Value added per employee stands at €55,000 This is a headline figure to compare against individual firm performance when judging whether headcount is creating proportional value.

Trend & trajectory

Over the period 2021 to 2022 the operating margin moved from 31.1% to 29.9% (-1.2 percentage points), a deteriorating trajectory that warrants attention. Sectors with stable or improving margins tend to reflect successful pass-through of input costs and disciplined capacity management; declining margins typically point to either over-supply or a structural cost squeeze that warrants strategic review.

Costs by category Human health and social work activities

Sector average % of revenue
Cost structure for Human health and social work activities in IT, 2008 to 2022, expressed as percentage of revenue.
Revenue / costs 2021 2022 2024
Total revenue 100.0% 100.0% 100.0%
Personnel costs (total) 26.3% 26.5%
Gross wages 19.5% 19.6%
Social and pension contributions 6.7% 7.0%
Other costs 42.6% 43.6%
Gross operating surplus (EBITDA) 31.1% 29.9%
Depreciation 13.2% 13.3%
Operating result (EBIT) 17.9% 16.6%

Source: Eurostat Structural Business Statistics (latest available year).

Per-employee benchmarks and capital intensity Human health and social work activities

Revenue per employee
65€k
Labour cost per employee
12€k
Value added per employee
55€k
Labour productivity
36€k
Employees per firm
3
Investment rate
6.0%
Labour cost / value added
34.0%
Wage-adjusted productivity
141.0%

Average sector figures sourced from Eurostat. Use as a yardstick. Note your own ratios may differ by scale, mix and legal form.

Operating result over 2 years

Sector average % of revenue
Average
30.5%
Peak
31.1%
2021
Low
29.87%
2022
Latest
29.87%
2022

Cost mix evolution

How costs have shifted as a share of revenue

Cost distribution as % of revenue Human health and social work activities (2022)

Recommended next steps

Based on the latest available data for Human health and social work activities