Italian unemployment has reached its lowest level since September 2012, providing much needed support to the Democratic government of Paolo Gentiloni ahead of the upcoming parliamentary elections in March. In November the level of the indicator reached 11%, a slight improvement compared to the previous month, when it was 11.1%, according to data from the national statistics. According to them, the number of employees in the eleventh months of the year is 65,000 more than the previous one.
At the same time, the total number of working Italians has been the highest since 1977, when the survey started. The youth unemployment also marks a decline to 32.7% compared to 34% in October.
Statistics are good news for Paolo Gentiloni’s Democratic party and its left-center coalition partners, who are lagging behind in polls from both the center-right bloc of former Prime Minister Silvio Berlusconi and the Five Star Movement.
The businesses in the third largest European economy are also more optimistic about unemployment, according to data from the end of last year.
Against this background, some analysts warn that the expiration of tax cuts for open-ended contracts adopted in 2014 could lead to further redundancies. In order to limit the widespread use of fixed-term or part-time employment contracts, the government may consider introducing new incentives for businesses, revealed the Italian Finance Minister Pier Carlo Padoan.