The latest data from Istat confirms extraordinary employment growth in Italy in October 2023. The number of employed individuals increased by 27,000 compared to September, bringing the employment rate to a historic high of 61.8%. This positive trend is even more remarkable when compared to October 2022, recording a significant increase of 2.0%, equivalent to +458,000 individuals.
Employment: Labor Market Trends and Involvement Across Categories
Employment growth is widespread and encompasses both men and women and all age groups, except for those aged 35-49, influenced by negative demographic dynamics. In particular, the increase pertains to permanent employees, surpassing 15.7 million, while there is a decline in both temporary employees and self-employed individuals.
This growth is a positive signal for the Italian economy, demonstrating that adopted labor policies are yielding tangible results. The increase in employment is not limited to a specific category but involves the entire spectrum of the workforce. The negative demographic dynamics have only marginally impacted those aged 35-49, while other age groups benefit from the employment surge.
Employment: Changes in the Unemployment and Inactivity Rates
The total unemployment rate has slightly increased to 7.8%, with a 0.1 percentage point increase. However, this positive change is mainly due to the removal of state subsidies, such as the citizenship income. This has led to an increase in job seekers, with an annual increase of 2.3%, equivalent to +45,000 individuals.
Contrastingly, the inactivity rate has decreased to 32.9%, highlighting a significant 0.2 percentage point reduction. This positive data indicates a decrease in inactive individuals aged 15 to 64, amounting to -69,000 compared to the previous month.
Decrease in Inflation and Market Trends
In parallel with the excellent employment performance, inflation in November registers a significant decrease, settling at 0.8%, a value not seen since March 2021. The decrease is primarily influenced by energy prices and the dynamics of certain service categories, while core inflation continues to decelerate.
The deceleration in the inflation rate is mainly attributed to energy prices, both unregulated and regulated, and to a lesser extent, the slowing down of processed food prices, recreational and cultural services, personal care services, and transport-related services. These effects are only partially offset by the acceleration in the prices of unprocessed food items.
Positive Conclusions and Future Perspectives
The record increase in employment in Italy, highlighted by Istat data, confirms the success of labor policies. Despite the international trend in raw materials, the Italian economy shows signs of recovery. The reduction in the inactivity rate is particularly significant, indicating increased participation in the labor market.
With a 2.0% increase in employment compared to the previous year, the country looks optimistically towards future prospects, demonstrating that implemented measures are yielding concrete and positive results. The reduction in inflation further consolidates the positive economic outlook, fostering consumer and investor confidence. Italy seems to be on the right path to sustainable and lasting economic recovery.