unemployment fell a little more to 7.4%, the lowest since 2009

2023-08-01 10:08:00

The decline in unemployment continues on the other side of the Alps to levels not seen since the crisis of the end of the 2000s, with the exception of the 2020 pandemic year. The unemployment rate in Italy fell once more in June compared to the previous month, losing 0.2 points compared to the previous month to 7.4%, according to provisional estimates published on Tuesday by the National Institute of Statistics. (Istat). ” The country’s rampant unemployment rate, of its youngest in particular, is the lowest it has been since 2009 “, explains the economist Véronique Riches-Flores in a note published at the end of July.

Eurozone: why Italy’s economy is doing better than neighboring countries

Among young people aged 15 to 24, unemployment fell by 0.4 points to 21.3%, while remaining very high. Among women, the unemployment rate fell by 0.3 point to 8.5% in June, remaining at a level significantly higher than that of men, which fell by 0.1 point to 6.5%. The number of people looking for work fell by 2.3% in June compared to May, which represents some 44,000 fewer job seekers. The general employment rate of the labor force in Italy rose, gaining 0.2 points to 61.5%.

Unemployment is falling, but remains higher than elsewhere in Europe

The unemployment rate in Italy, however, remains higher than that of the euro zone, which remained stable in June at 6.4% of the working population, as in April and May, according to Eurostat data published on Tuesday. The indicator is at its lowest level since the European statistics office began compiling this series in April 1998 for countries that have adopted the single European currency. Eurostat had initially forecast a rate of 6.5% for April and May before revising its figures downwards. For the European Union as a whole, it rose to 5.9% in June, stable compared with April (revised figure) and May.

Nevertheless, the employment situation has since improved in the Peninsula, once morest a background of better resistance of the Italian economy to a sluggish economic context. Italy is posting better economic performance than the euro zone, which has fallen into technical recession, which has bolstered the right-wing coalition governed by Giorgia Meloni for nearly a year. Beyond the unemployment rate, Italian corporate profits are 15% above their pre-pandemic level. These indicators in the green are reflected in the Milan Stock Exchange index, up 22% since the start of the year, better than the S&P500 and all other European markets.

Surprise drop in GDP in the second quarter

Italy is taking advantage of the fall in the euro, which is encouraging the rebound in industrial exports, the prices of which are made more competitive, to achieve a post-Covid catch-up that is faster than French or German exports. La Botte also benefited from the return of extra-European tourists following the pandemic and the attraction of a favorable exchange rate.

Euro zone: the unemployment rate remains at 6.4%, its historic low

This decline in the unemployment rate comes once morest a backdrop of declining economic activity in Italy. Gross domestic product (GDP) fell 0.3% in the second quarter compared to the previous one, once morest a backdrop of rising interest rates which dampened investment. While agriculture, forestry, fishing and industry have seen their activity decline, that of services has slightly increased “Explained Monday the National Institute of Statistics (Istat). The government of Giorgia Meloni still anticipates a 1% increase in GDP over the whole of 2023. The International Monetary Fund (IMF) raised its growth forecast by 0.4 points to 1.1%. for Italy.

In Germany, the number of unemployed is increasing, unemployment is falling

The unemployment rate in Germany fell slightly in July, but the slowdown in activity is weighing on the labor market, the Employment Agency said on Tuesday. The unemployment rate reached 5.6% in seasonally adjusted data (CVS), ie 0.1 point less than in June. In total, there were 4,000 fewer unemployed people in July compared to June, still in CVS data.

But in raw data, the number of unemployed increased by 62,000, to 2.61 million people in total. And compared to July 2022, unemployment increased by 0.3 points, with 147,000 more unemployed. ” Employment is increasing, but growth is running out of steam. Business labor demand remains cautious “Commented the president of the Federal Employment Agency, Andrea Nahles, in a press release.

(With AFP)