In January, the number of employed individuals in Italy was 23,738,000, which is 362,000 higher than in January 2023. This increase is attributed to a rise of 373,000 permanent employees and 22,000 self-employed individuals, as well as a decrease of 33,000 temporary employees. The overall employment rate decreased to 61.8% on a monthly basis, while the inactivity rate increased to 33.3% and the unemployment rate remained stable at 7.2%. This data was released by Istat.
The increase in employment affected both men and women across all age groups, except for those aged 35-49, due to negative demographic trends. The employment rate, which increased by 0.8 percentage points overall, also rose in the 35-49 age group by 0.4 points. This was because the decrease in the number of employed individuals aged 35-49 was less pronounced than the decline in the overall population of that age group. Compared to January 2023, the number of people looking for work decreased by 8.1% (-162,000 individuals), as did the number of inactive individuals aged 15 to 64 by 1.3% (-157,000 individuals). In the November 2023 to January 2024 quarter, employment levels increased by 0.4%, representing a total of 90,000 more people employed.
In February, preliminary estimates showed that inflation in Italy remained steady at 0.8%. This was primarily due to the easing of price pressures on non-energy-related food products, which offset the weakening deflationary pressures from the energy sector. Specifically, the year-on-year decline in energy prices lessened in February to -17.3% (from -20.5% in January). The annual growth rate of prices for essential goods increased to 3.7%, while underlying inflation stood at 2.4% (down from 2.7% in the previous month). This stabilization in the rate of consumer price growth was influenced by various factors in different sectors of the economy.
Overall, the labor market in Italy showed positive trends in January and February, with an increase in employment levels and a steady unemployment rate. The growth in permanent employment and self-employment contributed to the rise in the total number of employed individuals. Additionally, the decrease in the number of people looking for work and inactive individuals aged 15 to 64 further strengthened the positive employment trends. Furthermore, the stabilization of inflation rates in February indicated a balance between price pressures on different categories of goods, particularly in the food and energy sectors.
Despite overall positive trends, certain age groups such as 35-49 year-olds experienced challenges in terms of employment due to negative demographic factors. However, the slight increase in employment rates within this age group compared to the overall population indicated some resilience. The quarterly comparison between November 2023 to January 2024 and the previous quarter demonstrated an overall increase in employment levels in Italy, alongside a decrease in the number of people looking for work. This suggests a positive trajectory in the labor market, supported by stable inflation rates in February.
