Italy unemployment rate falls in July but 22,000 jobs lost in month

ITALY’S jobless rate fell to 7.9 per cent in July from 8.0 per cent in June, data showed on Thursday (Sep 1) as fewer people searched for work, but employment levels shrank by 22,000 compared with the month before.

June’s data was revised down from an originally reported 8.1 per cent.

July’s unemployment rate was the lowest since April 2020 and was below the forecast of 8.1 per cent in a Reuters survey of 7 analysts.

However, with the number of people in work falling, the decline in the unemployment rate was due to people withdrawing from the labour market altogether, rather than to job growth.

Despite this setback, in the 3 months to July employment was still up by 140,000, or 0.6 per cent, compared with the February-to-April period, ISTAT said. Compared with July 2021, employment was up by 463,000, or 2.0 per cent, it said.

In July, the youth unemployment rate, measuring job-seekers between 15 and 24 years old, rose marginally to 24.0 per cent from 23.9 per cent the month before.

Italy’s overall employment rate, 1 of the lowest in the eurozone, edged down in July to 60.3 per cent from 60.4 per cent in June.

Italy’s economic prospects have dimmed due to the fallout from Russia’s invasion of Ukraine, but the economy still grew by a stronger-than-expected 1.0 per cent in the second quarter from the previous 3 months, according to preliminary data.

Most analysts expect a sharp slowdown over the rest of the year, as firms and households grapple with surging energy costs. REUTERS