Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Unemployment in Italy - Statistics & facts
The Italian unemployment rate reached 6.5 percent in 2024. This figure has been decreasing steadily since 2018, registering the lowest rate in years. Nevertheless, Italy is among the European Union member states with the largest share of unemployed people and records the worst figures among the G7 countries. At the beginning of 2024 there were 1.75 million jobless people actively seeking employment. However, unemployment does not impact all sectors of Italian society equally. In fact, three more vulnerable groups are likely to suffer the greatest consequences of the lack of job opportunities: residents in the southern regions of the peninsula, young people, and women. More than 22 percent of those aged 15 to 24 years were without a job in 2023, compared to less than five percent of people aged over 50 years. Even though the unemployment rate is expected to decrease slightly in the following years, for these vulnerable categories it might be difficult to achieve equal opportunities without effective labor policies aimed at increasing possibilities for fair access to the job market.
Claiming unemployment insurance benefits is the main way for workers who lost their job to try and meet their living costs. In 2022, 46 percent of the benefits were paid out to workers residing in the south, compared to 37 percent supplied to northern workers, which is a large discrepancy when population differences are accounted for. Moreover, from 2019 to 2023, the Italian government provided households earning less than 9,360 euros yearly with a monthly allowance aimed at reducing poverty and encouraging employment. Recipients were obliged to actively search for an occupation with the support of qualified job centers. In 2023, 283,000 families received the Reddito di Cittadinanza (Citizens’ Basic Income) in the north, whereas the households in the south were more than 875,000. The large disparity in employment opportunities combined with significant salary differences have pushed many southern residents to relocate to the north, depriving the south of crucial labor resources.
Education is closely related to the possibility of young people to find a job. In fact, unemployment affects mostly those with a low education. In 2023, 16 percent of individuals aged 25 to 34 years holding at most a lower secondary school diploma were not employed, compared to only seven percent of those who obtained at least a bachelor’s degree. Hence, achieving a tertiary education title widens the opportunities for young people to enter the Italian job market. However, recent graduates are often faced with relatively low salaries and temporary contracts that can increase economic insecurity among the younger and more educated generations.
Regional differences
Unemployment in Italy is characterized by relevant regional disparities. All eight southern regions have the highest unemployment rates in the country. The share of the workforce without a job is more than ten percent higher than that of the north and seven percent greater than the national average. In Campania, Calabria, and Sicily, unemployment rates were over 15 percent each in 2023. On the other hand, northern regions perform better in terms of employment. Trentino-South Tyrol recorded a share of less than three percent. In fact, the unemployment rates of north Italian regions are much lower than the European Union average, whereas the rates in the southern regions are significantly higher than EU figures.Claiming unemployment insurance benefits is the main way for workers who lost their job to try and meet their living costs. In 2022, 46 percent of the benefits were paid out to workers residing in the south, compared to 37 percent supplied to northern workers, which is a large discrepancy when population differences are accounted for. Moreover, from 2019 to 2023, the Italian government provided households earning less than 9,360 euros yearly with a monthly allowance aimed at reducing poverty and encouraging employment. Recipients were obliged to actively search for an occupation with the support of qualified job centers. In 2023, 283,000 families received the Reddito di Cittadinanza (Citizens’ Basic Income) in the north, whereas the households in the south were more than 875,000. The large disparity in employment opportunities combined with significant salary differences have pushed many southern residents to relocate to the north, depriving the south of crucial labor resources.
Youth unemployment
Data on the employment situation of young people reveal a discouraging trend. The youth unemployment rate in Italy is among the highest in the European Union. Even if the figures have been decreasing in recent years, almost 23 percent of young Italians are unemployed. Also, southern regions hold a negative record. In Calabria, Sicily, and Campania, the youth unemployment rates range from 40 to 44 percent. Similarly to the general unemployment rates, Trentino-South Tyrol shows the best conditions in the country. Moreover, the percentage of young people who neither work nor study reached 16 percent in 2023. Once again, the southern regions show the highest shares. For instance, in Sicily, 28 percent of individuals under 29 do not study or work.Education is closely related to the possibility of young people to find a job. In fact, unemployment affects mostly those with a low education. In 2023, 16 percent of individuals aged 25 to 34 years holding at most a lower secondary school diploma were not employed, compared to only seven percent of those who obtained at least a bachelor’s degree. Hence, achieving a tertiary education title widens the opportunities for young people to enter the Italian job market. However, recent graduates are often faced with relatively low salaries and temporary contracts that can increase economic insecurity among the younger and more educated generations.
Higher unemployment among women
Lastly, important disparities in employment figures can be observed in data broken down by gender. The unemployment rate among women in Italy is 0.7 percentage points higher than among men. The gap has recently narrowed, while between 2019 and 2023, it showed differences of more than two percent in favor of men. Economic inactivity further highlights the gender disparity: 42 percent of women are considered economically inactive, compared to 24 percent of men. This is partly due to women having higher life expectancies and therefore making up a larger share of the retired population, although women of working age are also more likely to be students, stay-at-home parents, or suffer from long-term illnesses.
