The unemployment rate is falling, but all is not well. Istat has released provisional employment data for March 2026: the picture is that of a contracting labor market albeit with apparently positive numbers. And the disadvantaged are the usual ones: women and under 25s.
The boom of the discouraged
Although the unemployment rate fell to 5.2%, the drop was not due to a growth in jobs, but rather to a significant increase in inactive people, i.e. those who are not working and have stopped looking for work. In March, Italy recorded a loss of 12,000 employed compared to February, marking a slight decline of 0.1%.
The data takes on greater significance if analyzed on an annual basis: the decline in fact stands at 30,000 units less than in March 2025, confirming the halt in the employment push. At the same time, inactive people between 15 and 64 years old increased by 46,000 units in just one month, bringing the national inactivity rate to 34.1%. Compared to the previous year, the number of inactive people grew by 351,000 units, recording an increase of 2.9%. The unemployment rate, falling to 5.2% (-0.1 points compared to February), therefore reflects lower active participation in the market.
Those penalized: women and under 25
The decline in employment affects different segments of the population asymmetrically, highlighting a widening of the gender gap. In March, female employment recorded a decrease of 23,000 units in one month, while male employment saw an increase of 11,000 units.
Government bonuses for young people under 35 and women: 934 million for work incentives
The situation of young people between 15 and 24 is critical: in this age group, 141,000 jobs were lost in one year. The youth inactivity rate reached 80.1%, while unemployment among those under 25 rose to 18.1%.
VAT numbers are growing, fewer fixed-term employees
While permanent employees remain substantially stable on an annual basis (-14,000), there is a drastic collapse in fixed-term contracts, which decreased by 142,000 units compared to March 2025. This clear decline in fixed-term subordinate work is statistically balanced by a strong increase in independent work, which recorded 125,000 more employed people in twelve months.