An unexpected decline in the labor market
The Italian labor market registered a significant decline in September, interrupting a period of growth that lasted three months. According to data provided by ISTAT, the number of people employed fell by 63,000 compared to the previous month, bringing the employment rate to 62.1%. This decline has particularly affected employees, with a marked decrease among young people and middle-aged adults.
The data show that the self-employed and those over 50 have remained stable, while employment between 25 and 34 years old has shown a slight growth
.
Unemployment and inactivity on the rise
Although the unemployment rate remains stable at 6.1%, the youth unemployment rate has increased, reaching 18.3%. This is a worrying sign, as it indicates that young people are facing greater difficulties in finding work. In addition, the number of inactive people increased by 0.4%, an increase of 56,000 units. This phenomenon suggests that more and more people are giving up looking for work, which could have negative repercussions on the economy in
the long term.
Impact on GDP and future prospects
The labor market situation is also reflected in the data on the Italian Gross Domestic Product (GDP). Despite a summer increase in tourist flows, GDP showed stagnant growth, with an annual increase of 0.4%, the lowest since the beginning of the pandemic. This result is well below the expectations of the Meloni Government, which had expected an annual growth of 1%. To achieve this goal, the Italian economy will have to accelerate significantly in the last quarter of the year.
The economic difficulties are amplified by a decline in industrial production, with a decrease in revenues for the fourth consecutive month. Istat reported that the industrial turnover index reached its lowest level since January 2022, showing a contraction both in value and volume. This complex scenario requires targeted interventions by the Government to stimulate growth and address employment challenges
.
