Data from the National Institute of Statistics (ISTAT) showed that in December the unemployment rate fell to 7.2% (the lowest value since December 2008) from 7.4% in November (revised from 7.5%). Economists had expected the unemployment rate to rise to 7.6%. Meanwhile, the number of unemployed decreased by 50 thousand or 2.7% compared to November.
ISTAT also stated that the number of employed people increased by 14 thousand or 0.1% m/m. Employment growth concerned men and people aged 35 and over, while employment fell among women and the youngest. Overall, the employment rate increased by 0.1%, to 61.9%.
Over the past three months (through December), the number of employed people increased by 135 thousand or 0.6% compared to the previous three-month period (July-September 2023). Meanwhile, the number of unemployed fell by 30 thousand or 1.6% compared to July-September 2023.
The data also showed that in annual terms, the number of employed increased by 456 thousand or 2.0% in December, while the employment rate rose by 1.2%. Meanwhile, the number of unemployed decreased by 171 thousand or 8.5% per year.
The fall in unemployment came against the backdrop of slowing economic growth in Italy, with the outlook clouded by high ECB interest rates and geopolitical tensions linked to the wars in Ukraine and the Middle East.