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Italy’s Unemployment Rate Rises to 6.0% in August, Youth Joblessness Climbs Sharply

Italy’s unemployment rate edged higher in August, with official data showing signs of weakness in the labor market despite analysts having expected a slight uptick.

Figures from national statistics bureau ISTAT released Thursday showed the seasonally adjusted jobless rate rose to 6.0%, up from a downwardly revised 5.9% in July. The print was in line with forecasts from a Reuters poll of economists.

The Italian economy shed a net 57,000 jobs during the month, contributing to the increase in unemployment.

Youth Joblessness Worsens

Youth unemployment—covering job seekers aged between 15 and 24—rose more sharply, climbing to 19.3% from 18.6% in July. Analysts view youth joblessness as a key barometer of the health of Italy’s labor market, where structural rigidities often weigh heavily on younger workers.

Employment Rate and Inactivity

The employment rate slipped to 62.6% in August from 62.8% in July, leaving Italy among the weakest performers in the euro zone. Meanwhile, the inactivity rate, which measures people neither working nor actively looking for work, ticked higher to 33.3% from 33.2% in the prior month.

Broader Economic Context

Italy continues to face structural challenges in employment, with a persistently low participation rate and high youth joblessness adding to concerns over long-term economic resilience. Rising political and trade-related uncertainties across Europe, combined with slowing growth, have exacerbated pressure on the labor market.

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