Italy sees stable job growth, rising wages in Q1 2025 – Istat

In the first quarter of 2025, Italy added 141,000 employed individuals (+0.6%) compared to Q4 2024, driven mainly by an increase in permanent employees (+143,000, +0.9%) and self-employed workers (+18,000, +0.3%), more than offsetting a decline in fixed-term contracts (-20,000, -0.8%), according to the latest quarterly report by Istat.

The number of unemployed also rose slightly (+16,000, +1%), while the inactive population decreased by 157,000 (-1.3%). These trends pushed the employment rate up to 62.7% (+0.4 points), with the unemployment rate steady at 6.1% and inactivity down to 33.1% (-0.4 points).

Preliminary data for April 2025 showed stable employment and employment rates, alongside a slight decline in the unemployment rate (-0.2 points) and a marginal rise in inactivity (+0.1 points).

Labour input, measured by hours worked, grew 1% quarter-on-quarter and 1.1% year-on-year. Meanwhile, GDP rose 0.3% from the previous quarter and 0.7% year-on-year.

Year-over-year, employment increased by 432,000 (+1.8%), mostly thanks to a 4% rise in permanent jobs, offsetting declines in temporary employment (-6.7%) and self-employment (-0.4%). Unemployment dropped by 217,000 (-11%), and the number of inactive persons also fell by 95,000 (-0.8%).

Among businesses, employee positions rose 0.6% both in total and in full-time roles (+0.5% part-time). Annually, full-time jobs grew by 1.9%, part-time by 1.6%. Hours worked per employee increased slightly (+0.3% QoQ), but fell year-on-year (-0.8%). Use of wage support schemes (cassa integrazione) declined to 7.8 hours per 1,000 worked (-0.1 hours).

The job vacancy rate dropped to 1.9% (-0.1 pp QoQ, -0.3 pp YoY). Meanwhile, the cost of labour per full-time equivalent increased 1.5% over the quarter, driven by wages (+1.3%) and social contributions (+2.2%). On an annual basis, labour costs rose 4.6% (wages +4.1%, contributions +6.3%) due to contract renewals and the end of some contribution reliefs.