Italy records historic 5% unemployment amid wage gaps and regional labour disparities

The OECD Employment Outlook 2026 shows Italy’s unemployment rate fell to 5 % in May 2026, a historic low and close to the OECD average of 4.9 %. At the same time the employment rate reached a record 62.8 % in the first quarter, yet remains about 9.3 points below the OECD mean. The report highlights persistent gaps: real wages are still 6.1 % below the first‑quarter level of 2021 and are projected to fall another 0.9 % in 2026, with only a modest 0.2 % rise expected in 2027. Gender and youth disparities are pronounced, and territorial inequality is stark – the unemployment rate in the worst Italian provinces is more than four times that of the best‑performing ones. Structural factors such as an ageing workforce, digital transformation and the green transition are cited as barriers to narrowing these gaps. Separate national data show 370 work‑related deaths recorded between January and May 2026, with Sicily and Puglia classified as high‑risk “red‑zone” regions and the construction sector identified as the most exposed. The combination of record employment figures, wage stagnation and safety concerns outlines a mixed picture of Italy’s labour market in 2026.