IT: Unemployment Rate

Tue Sep 12 03:00:00 CDT 2017

Consensus Actual Previous
Level 11.3% 11.2% 11.6%

The jobless rate fell from an unrevised 11.6 percent in the first quarter to 11.2 percent in the three months to June.

What was the first decline in a year reflected a 0.3 percentage point fall in the male jobless rate to 10.4 percent and a 0.4 percentage point drop in the female rate to 12.4 percent. The decrease in overall joblessness was accompanied by a 78,000 increase in employment that lifted the employment rate by 0.2 percentage points to 57.8 percent.

The second quarter data are consistent with other recent indicators pointing to gradually increasing momentum in the Italian economic recovery.

The unemployment rate measures the number of unemployed as a percentage of the labour force. In addition to the quarterly data, a less detailed monthly report is also available.

Unemployment data are published on a quarterly basis and are very old by the time they are released (they are published about 11 weeks after the end of the reference quarter). The data are published both by the number of persons out of work and by the unemployment rate. The unemployment rate is obtained from the ratio between persons seeking employment and the total labor force as measured by the labor force survey (LFS). Italy uses the International Labour Organisation criteria as adopted by Eurostat to compile the data.

Despite the delay in publication of these data, investors can sense the degree of tightness in the job market. If labor markets are tight, investors will be alert to possible inflationary pressures that could exist. If wage inflation threatens, it's a good bet that interest rates will rise; bond and stock prices will fall.