Major EU economy sees jump in unemployment

Unemployment in Italy grew unexpectedly to reach 7.6% in July after six consecutive months of decline, preliminary official data showed on Thursday. 

Some 73,000 jobs were lost during the month, Istat reported, noting that the unemployment rate grew for the first time since February. 

Economists polled by Reuters had expected the unemployment rate to drop to 7.4%. In the corresponding month last year, the rate was 8%.

Compared to July 2022, the number of employed in the Eurozone’s third largest economy was 1.6% higher, with 362,000 more jobs this year. 

Despite the weak figures recorded in July, in the three months leading up to it, the employment rate in Italy was still up by 0.5%, versus the February-to-April period. 

According to the data, the overall employment rate of 61.3% is ranked as one of the lowest in the euro area, and the unemployment rate among young people aged between 15 and 24 saw a month-over-month drop to 22.1%, compared to 22.2% recorded in June. 

The preliminary data also showed that Italy’s GDP saw a 0.3% quarter-on-quarter decrease in the April-June period, with the coming quarters expected to demonstrate sluggish results, partially due to the latest hikes of key interest rates. 

The government officially forecasts full year GDP to grow by 1% this year, compared with the major expansion of 3.7% recorded in 2022.

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