Italy’s labour market showed signs of weakening in November 2025, with both employment and unemployment falling simultaneously—a rare combination that points to a sharp rise in economic inactivity, according to official data.
Figures released by Istat showed employment declined by 34,000 in November, pushing the employment rate down to 62.6%. The contraction was uneven, with losses concentrated among women, self-employed workers and those on fixed-term contracts.
By age group, employment fell most sharply among people aged 15–24 and 35–49, while those aged 25–34 recorded gains. Employment levels were broadly stable among men, workers on permanent contracts and people aged over 50.
At the same time, the number of people actively seeking work declined by around 30,000, a fall of 2% from the previous month. As a result, the unemployment rate edged down to 5.7%, while youth unemployment fell to 18.8%.
However, the decline in unemployment did not reflect an improvement in labour market conditions. Instead, it coincided with a significant increase in inactivity. Istat reported that the number of people aged 15 to 64 who were neither working nor looking for a job rose by 72,000 in November, lifting the inactivity rate to 33.5%.
The rise in inactivity was observed across both genders and most age groups, with the exception of those aged 25–34, who continued to show stronger labour market engagement.
Broader trend remains positive
Despite the weak monthly data, longer-term indicators suggest a more resilient underlying trend. Over the three months to November 2025, employment increased by 0.3%, equivalent to a net gain of 66,000 jobs, while unemployment continued to decline.
On an annual basis, Italy had 179,000 more people in work compared with November 2024, representing a 0.7% increase. The composition of employment also improved, with permanent positions rising by 258,000 and self-employment increasing by 126,000, more than offsetting a reduction of 204,000 fixed-term jobs.
Year-on-year data show the employment rate rose by 0.3 percentage points, while both unemployment and inactivity fell, indicating that despite November’s setback, Italy’s labour market continues to show signs of gradual structural improvement.
