Italy: Employment and unemployment trends in January 2025

The employment market in January 2025 experienced positive growth, with the number of employed individuals increasing while unemployment and inactivity rates declined. The employment rate rose to 62.8%, reflecting a 0.4 percentage point increase compared to the previous month.

Employment gains were observed across both men and women, as well as all age groups, except for individuals aged 35-49, where a decline was recorded. Meanwhile, the number of unemployed persons dropped by 0.6%, equivalent to a reduction of 9,000 individuals. This decline was particularly evident among men and across most age groups, although there was an increase in unemployment for those aged 25-34. The unemployment rate fell to 6.3%, marking a 0.1 percentage point decrease, while the youth unemployment rate also declined to 18.7%, down by 0.3 percentage points. The number of unemployed women remained stable during this period.

Inactivity levels also saw a notable decline, with the number of inactive individuals falling by 1.2%, amounting to a reduction of 146,000 people. This decline was observed across men, women, and individuals aged 15-34 and 50 and over, whereas those aged 35-49 saw an increase in inactivity. Consequently, the inactivity rate dropped to 32.9%, a decrease of 0.4 percentage points.

Looking at the broader quarterly trends from November 2024 to January 2025, employment rose by 0.4%, adding 85,000 new jobs compared to the previous quarter of August to October 2024. However, the number of unemployed persons increased by 1.4%, equating to 22,000 additional unemployed individuals. At the same time, inactivity among people aged 15-64 declined by 0.8%, reflecting a reduction of 99,000 individuals.

On an annual basis, employment showed strong growth, with the number of employed individuals rising by 2.2%, amounting to an increase of 513,000 people. This increase was recorded across both sexes and among individuals aged 25-34 and 50 and over, while employment decreased for other age groups. The employment rate improved by 1.0 percentage point over the year.

The yearly increase in employment was accompanied by a significant reduction in the number of unemployed individuals, which fell by 10.7%, equivalent to 194,000 fewer unemployed persons. Additionally, the number of inactive individuals aged 15-64 dropped by 1.3%, representing a decrease of 158,000 people. These figures indicate a continued strengthening of the labor market, with positive trends in employment and reduced inactivity levels contributing to overall economic stability.

Source: Istat