The unemployment rate in Italy edged up to 6.0% in March 2025, rising slightly from a nearly 18-year low of 5.9% recorded in February, and aligning with market expectations.
Italy jobless rate ticks higher to 6%
While the increase was modest, it marked the first uptick in several months and suggested early signs of a potential cooling in the labor market. The number of unemployed individuals rose by 32,000 from the previous month to reach 1.555 million, while the number of employed declined by 16,000 to 24.307 million, indicating some softness in hiring activity across key sectors.
Despite this, the labor force participation rate remained unchanged at 67.1%, its second-highest level since records began in 2004, highlighting a broader trend of increased engagement in the labor market. This stable participation rate may reflect growing confidence among jobseekers as well as structural improvements in labor market accessibility, particularly for women and older workers.
Youth unemployment rises
However, the youth unemployment rate—covering individuals aged 15 to 24—climbed notably to 19.0% from a record low of 17.3% in February. The sharp rise in youth joblessness signals renewed challenges for younger entrants into the labor force, who often face greater vulnerability to economic fluctuations, limited work experience, and barriers to long-term employment. This uptick could be partly attributed to seasonal shifts or delayed labor market absorption following graduation periods, but it may also point to deeper structural mismatches in skills and job availability.
The latest figures come amid a backdrop of moderating economic activity and tightening financial conditions across the euro area. While Italy's labor market remains relatively strong by historical standards, policymakers will be closely watching upcoming data for signs that the recent gains in employment are starting to plateau. Any sustained rise in unemployment, particularly among youth, could prompt targeted labor market interventions or adjustments in training and education policies aimed at improving job readiness and long-term employability.
