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    Home » Italy records lowest unemployment rate in two decades
    News

    Italy records lowest unemployment rate in two decades

    January 10, 2026
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    EuroWire, ROME: Italy’s unemployment rate fell to its lowest level on record in November, according to provisional data released by the national statistics office, marking a further improvement in labour market conditions toward the end of 2025. Figures published by the Italy’s National Statistics Institute showed the unemployment rate easing to 5.7 percent in November, down 0.1 percentage point from October. The reading is the lowest recorded since the start of the current statistical series in 2004, underscoring a steady decline in joblessness over the past year.

    Italy records lowest unemployment rate in two decades
    Italy records lowest unemployment rate on record as labour market data shows mixed trends.

    The November figure represents a reduction of 0.6 percentage point compared with the same month a year earlier, reflecting continued year on year improvement in employment outcomes. Italy’s unemployment rate has trended lower through most of 2025, supported by sustained job creation over the 12 month period despite month to month fluctuations. The data were released in Rome, where labour market indicators are closely monitored as a key measure of economic performance.

    Youth unemployment also declined during the month, according to the data. The unemployment rate among people under the age of 25 who are active in the labour market fell by 0.8 percentage point to 18.8 percent in November. Although the youth rate remains significantly higher than the overall national average, the decline marks a continuation of gradual easing seen earlier in the year. The reduction brings the figure further below levels recorded during previous periods of economic stress, when youth unemployment exceeded 30 percent.

    Alongside the fall in unemployment, the data pointed to an increase in labour market inactivity. The inactivity rate, which measures the share of the population that is neither employed nor actively seeking work, rose by 0.2 percentage point to 33.5 percent in November. The increase highlights ongoing structural characteristics of Italy’s labour market, where a sizeable proportion of the working age population remains outside the labour force.

    Italy unemployment rate reaches historic low

    Total employment stood at 24.188 million people in November 2025, based on provisional estimates. This marked a decline of 34,000 compared with October, indicating a modest monthly contraction in the number of people in work. Despite the month on month decrease, total employment remained higher than a year earlier, with 179,000 more people employed than in November 2024. The annual increase confirms that overall employment growth has continued over the course of the year.

    The employment rate, defined as the share of the working age population in employment, edged down by 0.1 percentage point from the previous month to 62.6 percent. Even with the slight monthly dip, the employment rate remained 0.3 percentage point above its level in November 2024. This indicates that employment growth over the year outpaced changes in the working age population, maintaining an upward trend in labour market participation on an annual basis.

    November snapshot closes out 2025 labour data

    The November data provide a detailed snapshot of Italy’s labour market at the close of most of 2025. While unemployment reached a historic low, the figures also showed diverging movements between employment, inactivity, and participation. The combination of lower unemployment, higher inactivity, and a marginal monthly fall in employment reflects the complexity of labour market dynamics captured in the monthly survey.

    Italy’s labour market performance in November comes against a backdrop of gradual economic expansion during 2025, with employment gains accumulated over the year despite periodic slowdowns. The provisional nature of the data means figures may be revised in subsequent releases, as is standard practice. Nevertheless, the November readings confirm that Italy entered the final months of the year with unemployment at its lowest level since comparable records began, while overall employment remained significantly higher than a year earlier.

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