Italy’s labour market showed mixed signals in the second quarter of 2025, Istat reported on Friday. Premier Giorgia Meloni welcomed Istat’s report on employment in the south.
Hours worked rose by 0.2% compared with the first quarter and 1.7% year-on-year. In contrast, GDP slipped 0.1% quarter-on-quarter but increased 0.4% from a year earlier.
Employment numbers remained stable overall. Permanent employees fell by 21,000 (−0.1%) and fixed-term workers by 45,000 (−1.7%), while self-employed rose by 74,000 (+1.4%).
Unemployment increased slightly, with 13,000 more people out of work (+0.8%). The number of inactive aged 15 to 64 fell by 16,000 (−0.1%).
Rates were virtually unchanged: employment at 62.6%, unemployment at 6.3%, and inactivity at 33.0%.
Provisional July data showed a monthly rise in employment and a 0.1-point increase in the employment rate. The unemployment rate fell by 0.3 points, while inactivity edged up by 0.1 points.
Year-on-year, employment grew by 226,000 (+0.9%). Gains came from permanent employees (+1.9%) and self-employed (+3.0%), offsetting a sharp fall in temporary jobs (−7.7%).
The unemployed population fell slightly (−9,000, −0.5%). Inactivity dropped more markedly (−150,000, −1.2%). Compared with Q2 2024, the employment rate rose by 0.4 points, unemployment dipped by 0.1, and inactivity dropped 0.4.
Total jobs increase
On the enterprise side, total jobs increased 0.4% quarter-on-quarter, with part-time up 0.5% and full-time 0.3%. Annually, both rose: full-time jobs by 1.7%, part-time by 1.5%.
Hours worked per employee fell by 0.5% quarterly and 0.3% annually. Short-time work allowances also declined, to 6.7 hours per 1,000 worked (down 0.8 on Q2 2024).
The job vacancy rate was stable compared with Q1 but fell by 0.4 points year-on-year.
Labour costs rose by 0.6% quarter-on-quarter, in line with wages. Social contributions climbed by 0.7%. Annually, labour costs increased 3.6%, with wages up 2.9% and contributions 4.9%. Istat linked higher contributions to weaker social security relief measures.
Employment in south rises
Premier Giorgia Meloni welcomed Istat’s report on the South. For the first time, the employment rate for 15–64 year-olds exceeded 50%.
The rate hit 50.1% in Q2, up from 49.9% in Q1 and 49.3% a year earlier. Employment in the South rose to 6.549 million, the highest figure since records began in 2004, up 96,000 on last year.
“They accused us of wanting to split Italy, but we chose to believe in the South’s energy, talent and strength,” Meloni said on social media.
She credited investment in infrastructure, labour and merit, rejecting past “welfarism.” She added: “Istat data certify the highest number of people since 2004 are in employment in the South. The road is the right one, and we will continue along it.”
