Italy has seen significant employment growth during the first two years of Giorgia Meloni’s government, according to a report released by the CGIA Research Office on Saturday. The report reveals a net increase of 847,000 jobs since 2022, marking a 3.6% rise in overall employment.
Of the 847,000 new jobs, 672,000 are in the employed workforce, while 175,000 are in self-employment. Within the employed sector, the number of workers with permanent contracts has grown substantially, increasing by 937,000. Meanwhile, fixed-term contracts have dropped by 266,000.
This shift has reduced the proportion of precarious workers—those on fixed-term contracts—to 14.4% of the workforce, a two-point decline from October 2022.
This was an area which the EU had been pressuring Italy to address for some time.
Unemployment figures have also seen a marked improvement. The number of unemployed individuals fell by 496,000, reaching 1,473,000, while the number of inactive individuals—those not seeking work—decreased by 198,000 to 12,538,000.
Gender Balance in New Jobs
The new jobs created over the past two years show a near-equal split between genders. Women account for 420,000 of the new positions (49.6%), while men hold 427,000 (50.4%). However, among the 496,000 fewer unemployed, women have seen the most significant reduction, with 274,000 leaving unemployment (55.1%) compared to 223,000 men (44.9%).
As of October 2024, the number of employed women reached 10,253,000, while unemployed women fell to 693,000.
Age Groups Driving Employment
The over-50s have been the largest contributors to Italy’s employment growth. Of the 847,000 new jobs, 710,000 (83.8%) were taken by workers in this age group.
Other age groups also showed positive growth:
- The 25–34 age group added 184,000 jobs.
- The 15–24 age group saw a modest increase of 18,000 positions.
Conversely, the 35–49 age group experienced a decline, losing 66,000 jobs over the same period.
In August, the governor of the Bank of Italy urged an increase in the employment of the young, in order to address demographic decline. As the figures show, it is the eldest age group which is in fact taking the jobs leaving the youth trailing.
Increase in Redundancy Fund Usage
Despite the positive trends, the report highlights a significant rise in the use of the Cassa Integrazione Guadagni (CIG) redundancy fund, particularly in northern Italy. The average monthly hours allocated to the fund in 2024 have exceeded those recorded in the previous year, suggesting challenges in specific sectors.
While Italy’s employment figures show considerable progress, the increased reliance on redundancy funds indicates potential underlying economic pressures. The government will need to address these imbalances to sustain the momentum and ensure stability across all sectors of the workforce.
