Unemployment fell 30,000 in the fourth quarter to 1.971 million. This followed a smaller revised 35,000 drop in the previous period and extended the unbroken run of declines that began in the second quarter of 2021. The fall reduced the headline jobless rate by 0.2 percentage points to 7.8 percent, in line with the outcome already indicated in the monthly reports. The rate now stands at its lowest level since the second quarter of 2009.

At the same time, employment increased 120,000 to 23.250 million, easily more than reversing the third quarter's 10,000 decline and wholly reflecting a 166,000 jump in full-time positions. As a result, hours worked rose 0.7 percent and were up 3.1 percent versus a year ago

Looking ahead, the monthly data for January showed the unemployment rate edging a tick higher to 7.9 percent. Today's update puts the Italian ECDI at minus 11 and the ECDI-P at 3.

The monthly data point to a 7.8 percent quarterly jobless rate.

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.