Labour market - Q1 2022

The labour input, as measured by hours worked, increases by 1.5% compared to the previous quarter and by -6.7% compared to the first quarter of 2021. In the same period GDP grows by 0.1% quarter-on-quarter and by 6.2% year-on-year.

On the job supply side, in the first quarter of 2022, the number of employed increases by 120 thousand units (+0.5%) compared to the previous quarter, due to the rise in the number of temporary employees (+72 thousand, +2.4% in three months), and less intensely, of number of permanent employees (+33 thousand, +0.2%) and of self-employed (+15 thousand, +0.3%).

The decrease in the number of unemployed (-114 thousand, -5.0% in three months) is associated with a reduction in inactive people aged 15-64 years (-66 thousand, -0.5%). The monthly seasonally adjusted provisional data referred to April 2022 point to a substantial stability in the number of employed people (-12 thousand, -0.1%), a further slight reduction in unemployment (-17 thousand, -0.8% compared to March 2022) and an increase in inactivity (+34 thousand, +0.3%). Rates follow the same dynamic: in the quarter, the employment rate among people aged 15-64 years increasing by 0.4 points compared to the previous quarter going up to 59.7%, and the unemployment and inactivity rates both decrease. Monthly seasonally adjusted provisional data referred to April 2022 point to a stability in employment rate compared to March 2022, a slight reduction of the unemployed rate (-0.1 percentage points in a month) and the light increase of the inactive rate (+0.1 percentage points).

In a year-over-year perspective the surge in employment (+905 thousand, 4.1% compared to the first quarter of 2021) involves both employees – permanent employees (+369 thousand, +2.6%) and mainly temporary employees (+412 thousands, +16.3%) – and self-employed (+124 thousand, +2.6%).The number of unemployed declines (-415 thousand in one year, -16.0%), accompanied by a reduction in the number of inactive people aged 15-64 years (-846 thousand, -6.1% in one year). The year-over-year growth in the employment rate (+3.0 percentage points by the first quarter of 2021) is associated with the decrease in unemployment and inactivity rates (-1.9 and -2.0 percentage points respectively).

On the enterprise side, labor demand shows on a quarterly basis an increase in total employee jobs equal to 1.2%, with a more sustained growth compared to the previous quarter, which is reflected in both components: full-time jobs rise by 1.3% and part-time jobs by 1.1%. On an annual basis, total employee jobs continue to show a more marked growth equal to 6.2%, +6% full-time and +6.2% part-time.The hours worked per employee show an increase on a quarterly basis (1.2%) and a more evident one on an annual basis (5.8%). The use of short-time working allowances fell to 12.9 hours per 1,000 hours worked. The job vacancy rate decreases compared to the previous quarter (by 0.2 percentage points) while increases with respect to the first quarter 2021 (by 0.8 percentage points).

Total labour cost cost remains unchanged compared to the previous quarter, as an effect of a slight reduction in wages and salaries (-0.1%) and an opposite increase in social security contributions (+0.1%) while, on an annual basis, labour cost decreases by 0.2%, due to a reduction of both components, wages and salaries (-0.2%) and social security contributions (-0.4%).

Note: On 24 June 2022, a new version of the press release has been published, which integrates the “Focus on”: Jobs on call in the Italian businesses in the last decade.