ROME: Italian unemployment was unchanged at 11.4% for August and was also in line with market expectations. The overall unemployment rate was marginally lower from August 2015. There was a small decline in male unemployment over the year to 10.6% from 10.9%, while female unemployment increased to 12.6% from 12.4%.
Over the year, the employment rate increased to 57.3% from 52.7% previously. There was also a net decline in youth unemployment to 38.8% from 39.2% the previous month and 39.6% the previous year with the rate below 40% for the past 14 months.
Overall consumer confidence has, however, weakened to the lowest level for over 12 months, while the Italian Treasury also downgraded its 2017 forecasts earlier this week. Under the new projections, unemployment is expected to remain above 11.0% in 2017 and weakness in the labour market will remain a key factor behind discontent with the Italian government and Eurozone economic policies.
Concerns over the labour market and the very slow pace of decline in unemployment from a peak above 13.0% in early 2015 remain key risk factors ahead of the December 4th political reform referendum with a continuing risk that wider discontent will trigger a no vote. Eurozone unemployment was 10.1% for August, slightly higher than the expected 10.0%.
