| Actual | Previous | |
|---|---|---|
| Rate | 6.1% | 6.3% |
Highlights
The unemployment rate fell to 6.1 percent in the third quarter from 6.3 percent in the second even as the ranks of the employed contracted on a year-on-year comparison, ending 17 months of increases. This was primarily due to a 2.0 percent contraction in temporary employment.
The overall number of hours worked increased during the three months ending September, up 0.7 percent, led by a 1.4 percent increase in construction. Overall industry excluding the construction sector rose 0.8 percent, while hours in the services industry rose 0.6 percent, according to national accounts data.
Italian workers at large firms logged more hours in the third quarter than in the second, increasing 1.4 percent while the vacancy rate was up marginally to 1.8 percent.
Labor also became more expensive, with the labor cost index increased 0.8 percent over the previous quarter on a seasonally-adjusted basis while up 3.3 percent unadjusted from the third quarter of last year.
Today's report is a broadly positive one with permanent jobs holding steady and workers taking home more pay. It remains to be seen whether that money will be spent or put towards savings.
The overall number of hours worked increased during the three months ending September, up 0.7 percent, led by a 1.4 percent increase in construction. Overall industry excluding the construction sector rose 0.8 percent, while hours in the services industry rose 0.6 percent, according to national accounts data.
Italian workers at large firms logged more hours in the third quarter than in the second, increasing 1.4 percent while the vacancy rate was up marginally to 1.8 percent.
Labor also became more expensive, with the labor cost index increased 0.8 percent over the previous quarter on a seasonally-adjusted basis while up 3.3 percent unadjusted from the third quarter of last year.
Today's report is a broadly positive one with permanent jobs holding steady and workers taking home more pay. It remains to be seen whether that money will be spent or put towards savings.
Definition
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.
Description
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.
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.
