The unemployment rate in Italy eased to 5.9% in February 2025, down from a revised 6.2% in the previous month, defying forecasts of an increase to 6.3%.
Italian jobless rate lowest since 2007
This marks the lowest rate since April 2007, reflecting continued resilience in the Italian labor market despite broader economic uncertainties. The number of unemployed individuals declined by 79 thousand from the previous month, reaching a more than seventeen-year low of 1.517 million, while employment levels continued to improve, with the number of employed individuals rising by 47 thousand to 24.332 million.
Slight decrease in labor force participation
The drop in unemployment came alongside a slight decrease in labor force participation, which edged down by 0.1 percentage points to 67.1%, though it remained the second highest on record since the series began in 2004. The improving labor market conditions were particularly evident among younger workers, as the youth unemployment rate for those aged 15-24 fell to a record low of 16.9%, down from 18.3% in January. This decline suggests that employment opportunities for young job seekers have expanded, potentially supported by government initiatives, vocational training programs, and strong demand in certain sectors such as services and manufacturing.
Challenges remain
Despite the overall positive trend, challenges remain, including regional disparities in employment levels, job security concerns, and structural issues in the labor market. However, the sustained decline in unemployment and record-low youth joblessness signal increasing confidence in the Italian economy, potentially supporting household consumption and economic growth in the coming months.
