The unemployment rate is a statistical indicator that expresses the percentage of unemployed people in the active population in the labor market. In this article, the age group considered as the active population is those older than 15 and younger than 29. In 2022, the unemployment rate is reported to be 18,0% although declining it is still quite high compared to other EU countries.
Below is an overview of the youth unemployment rate from 2019 to 2022, broken down by gender.
Compared with 2020/21 (pandemic years), 2022 saw a big drop in the total unemployment rate. A concern is the female unemployment rate of 19,6%, which remains higher than the male unemployment rate. For young people, there are high values for both rates and it is also observed among those with tertiary degrees, reflecting the difficulties in entering into the labor market and prolonged inactivity due to study; however, over the years the differential in favour of higher educational qualifications has gradually increased.
Unemployment rate in different regions of Italy
Below is an overview of the unemployment rate in different regions of Italy. Campania and Sicily both rank No. 1 with an unemployment rate of 34,3%, while Trentino-Alto Adige/Südtirol, on the other hand, holds the lowest unemployment rate in all of Italy at 6,1%.
As always, Italy is split in two. This could be related to the fact that there is much less work in southern regions of Italy than in the north, since many companies reside in the north and the south has more agricultural work. And also because of the prevalence of undeclared work. Southern Italy has a lot of seasonal work especially summer work in tourism.
Employment rate
The employment rate is another important statistical indicator of the labor market. It expresses the percentage of the employed population in the total population. In 2019, there were an increase in employment and pre-crisis 2008 levels were exceeded. In 2020 (the year of the pandemic) there was a sharp decline in employment fell from 32.0% to 29.7%, with the employment rate returning to 2017 levels. In the post-pandemic period there was a strong recovery: the employment rate (15-29 years old) reached 33.8%. The trend is positive however still far from that of EU countries.
Below is an overview regarding employment (15-29 years old) by gender from 2019 to 2022.
Women show an average employment rate (29.0%), which is lower than that of men (38.3%). The pandemic had a big impact among the gender gap, to which it caused an increase. By 2021, this gap has decreased. Where the employment rate for women had +1.8 points compared to +1 for men; however, the share of the employment rate of women aged 15 to 29 still did not exceed 30% (29.0 compared to 38.3 for men).
Employment rate in different regions in Italy
Below is an overview of the employment rate in different regions in Italy. At the top of the podium is Trentino-Alto Adige/Südtirol with 48.8% of employees, while instead Calabria at the lowest employment rate with 20.5%.
As mentioned above, Italy is divided in two. With northern Italy with 41.6%, the center with 34.9% and the south with 23.4%. The north over the past two years has seen an increase in the employment rate of +3.2 points, the center +3 points, while the south +1.6 points. Although the south has been less affected by the pandemic in comparison with the north, it still remains with a lower employment rate than the north.
In comparison with the EU
Below is an overview of Italy's unemployment rate in comparison with of EU countries from 2019 to 2022. Italy's 18.0% unemployment rate of 15-29 year olds ranks 3rd, below Spain with 22.4% and Greece 1st with 24.3%.
In fact, in 2021 in the European Union the unemployment rate of people aged 15-29 was 4.2 percentage points higher than the population average (15-74). In three member states the share does not exceed 10%. These three states are the Netherlands with 6.3%, Germany with 5.0%, and finally the Czech Republic with 4.2%. January 2021 was the month in which youth unemployment in Italy peaked. As well as the one in which the gap with the Union average reached the highest levels: 14.6 percentage points difference.
When considering the gap, at the level of the youth unemployment rate and general population. Italy surpasses Spain and finds itself in second place after Greece (the difference between the rates is +9.9 percentage points, while for Greece it is +11.8). And again Germany and the Czech Republic are last.
Employment rate in comparison with the EU
Below is an overview of the employment rate in Italy compared to that of EU countries. Italy ranks second to last with 33.8%, while the Netherlands ranks first with 79.3%.
Four EU countries are below the 40% quota. They are Spain with 38.8%, Bulgaria with 38.5%, Italy with 33.8%, and finally Greece with 33.1%. All four countries are expected to increase from 2021 to 2022. Two countries stand out for their employment rates: the Netherlands (79.3%) and Norway (67.3%). Over the past 12 years, more than one million Italians have gone to work abroad; more than 23 percent have a college degree.
How to improve
To improve youth employment in Italy, it is important to invest in education, vocational training and research so that young people acquire the skills needed for the modern labor market. Support youth entrepreneurship and encourage businesses that create stable jobs. Add laws that protect working youth from being exploited by bosses and also have a minimum wage.