Italy's employment falls by 7,000 in September while unemployment holds at 6.3%

Employment slips in September

Italy's employment fell by 7,000 in September compared with August, to 24,328,000 people, according to provisional data released by Istat on 29 October 2026. Compared with September 2025, the figure is 198,000 higher, a rise of 0.8%. The employment rate held at 63.0% on the month and was up 0.4 points on a year earlier.

Unemployment and inactivity

The number of unemployed rose by 4,000 on the month to 1,620,000, and by 117,000 on September 2025. The unemployment rate was stable at 6.3%, while the youth rate fell to 19.9%, down 0.4 points. The inactive population aged 15 to 64 fell by 3,000 on the month and by 293,000 over the year, to 12,121,000. The inactivity rate stayed unchanged at 32.7%.

A shift toward fixed-term contracts

Permanent employees fell by 108,000 in a single month, while fixed-term employees rose by 101,000, leaving the total broadly stable. Istat counted 16,490,000 permanent employees, 2,567,000 fixed-term employees and 5,270,000 self-employed. Over twelve months, permanent jobs gained 71,000, fixed-term jobs 89,000 and self-employment 38,000.

Permanent employees16,490

Fixed-term employees2,567

Self-employed5,270

Permanent employees

16490 thousand people

Fixed-term employees

2567 thousand people

Self-employed

5270 thousand people

Data from the article text

Francesco Seghezzi, president of ADAPT, wrote on X that annual growth in fixed-term employment has overtaken permanent growth for the first time since February 2022.

“The signal is there.”

Seghezzi also said that the monthly figures could be affected by statistical swings, so a structural reversal cannot yet be claimed. He asked whether firms facing weaker economic prospects were turning back to temporary contracts.

Breakdown by gender and age

Over twelve months, men gained 126,000 jobs and women 72,000. Workers aged 50 and over numbered 10,529,000, up 339,000 in a year, a rise Istat linked partly to population ageing. The 35 to 49 age group was the only one to lose ground over the year, down 161,000. On the month, employment fell among men (down 12,000) and in the 35 to 49 group (down 34,000), while the number of unemployed rose mainly among women (up 10,000).

Consumer and business confidence

Separately, Istat reported that the consumer confidence index fell to 90.3 in October from 91.2 in September, the lowest since September 2023, when the series began. The economic climate indicator dropped from 88.0 to 82.9, its lowest since April 2026. Business confidence rose from 95.9 to 96.6, with services and construction improving while retail fell from 104.3 to 100.7.

2026-09

91.2 index

2026-10

90.3 index

Data from the article text

Trade with non-EU countries

Exports to non-EU countries fell 1.3% on the month in September, while imports rose 1.4%. Istat attributed the import increase mainly to higher purchases of energy (up 10.9%) and intermediate goods (up 1.6%). Year on year, exports rose 5.4%, down from 16.7% in August 2026, while imports grew 6.3%, led by energy at 68.9%.