| Actual | Previous | |
| Rate | 5.6% | 6.1% |
Highlights
The unemployment rate fell in the fourth-quarter to 5.6 percent from 6.1 percent in the third on a seasonally adjusted basis while the employment rate held steady at 62.5 percent.
The overall number of hours worked was unchanged quarter-on-quarter. In the construction sector, hours worked were up 1.0 percent, while those in the industrial sector fell 0.2 percent from the previous quarter.
Workers earned more in the fourth quarter, with wages increasing 0.3 percent over the previous three-month period. At the same time, the job vacancy rate increased by 0.1 percentage point to 1.9 percent.
Overall, the labor market is showing improvement with the unemployment rate now having fallen for two consecutive quarters.
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.