Italy's May unemployment drops to 5% as employment falls and inactivity rises

Italy's labour market data for May 2026 show the unemployment rate falling to 5%, the lowest level on record for the national series. The decline is not driven by new hiring; instead, the number of employed fell by about 22,000, marking the first monthly decrease since December 2025.

At the same time, the pool of inactive people grew by roughly 59,000, reaching 12.476 million. Youth inactivity rose sharply, with the 15‑24 age group seeing a 35,000‑person increase and the inactivity rate climbing to 79.8%. Female inactivity also rose, pushing the overall female inactivity rate to 42.5% while male inactivity stayed at 24.9%. The central‑age cohort (35‑49) lost about 40,000 jobs, whereas employment among those aged 50‑64 increased by 35,000.

Analysts caution that the lower unemployment figure reflects a structural shift toward inactivity rather than a revival of hiring, noting that declining real wages and higher living costs are discouraging job search activity.