| Actual | Previous | |
| Rate | 5.3% | 5.6% |
Highlights
The unemployment rate fell to 5.3 percent in the first quarter, as the number of employed persons topped 24 million, a 0.3 percent increase over the fourth quarter.
At the same time, the number of unemployed fell by 7.6 percent to 1.342 million. Another encouraging sign is the increase in the hours worked which grew 0.3 percent quarter-on-quarter and 1.0 percent year-on-year.
Workers took home more pay in the first quarter, with gross wages and salaries rising 1.1 percent from the final four months of last year. Compared to the first quarter of last year, wages rose 3.0 percent.
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.