“Between 2021 and 2026 the Italian labor market showed a positive trend, with an increase in the employment rate and a decrease in unemployment. Employment growth involved all age groups except the youngest, being higher for the 50-64 age group (+7.8 points), also due to the progressive demographic aging and pension reforms. At the contractual level, stable employment is consolidating, with an increase in permanent employees and a simultaneous reduction in temporary ones.” This is highlighted by Istat in the usual Note on the trend of the Italian economy, referring to July – August 2026.
Read more Starlink in the High-Speed Test: This is Internet at 300 per hour on Italo trains
Ask the Sun
The questions are automatically suggested by 24Ore AI
based on the content viewed.
Expanding labor market
In Italy, in recent years – emphasizes Istat – the labor market has shown expanding employment, in a context characterized by significant economic and demographic transformations and the persistence of some structural criticalities. In the five-year period July 2021-July 2026 a particularly positive general picture has emerged, with an overall increase in the employment rate (+4.4 percentage points, about 1.6 million more employed) and a simultaneous decrease in both unemployment (-3.4 points, with -787 thousand people seeking work) and inactivity (-2.4 points, with about 1.05 million fewer inactive).
More and more young people inactive, but more educated
The most significant employment increase was recorded in the 50-64 age group (+7.8 points), accompanied by a strong reduction in inactivity (-6.3 percentage points). Conversely, the youth group (15-24 years), although characterized by a sharp drop in the unemployment rate (-8.6 points), also showed a decline in employment (-1.2 points) and an increase in inactivity (+4.1 points), partly due to the raising of education levels which delays young people’s entry into the labor market.
Read more Boom of Taiwan chips, +53% sales in August for Tsmc
The impact of raising the retirement age
The employment increase – explains Istat – has affected more broadly the older age groups and has been influenced, besides the overall economic dynamics, by two main factors. On one hand, pension policies, characterized by the progressive raising of the retirement age which has led to a prolongation of individuals’ stay in the labor market. Added to this, as already mentioned, is the progressive raising of education levels which has delayed entry into the labor market and, consequently, also the exit to reach the required minimum contribution.
Population aging
On the other hand, the aging process of the Italian population, emphasizes Istat, is significantly changing the demographic structure of the country. In particular, the progressive decrease of the population in age groups under 50 has been accompanied by an increase in the number of over-fifties. This change in demographic composition has also reflected on the employment structure, resulting in a growing weight of older workers on the total.
Read more Istat: in July industrial production +0.7%, unchanged year-on-year
