Labour market - Q2 2024

The labour input, as measured by hours worked, decreases compared to the previous quarter (-0.2%) and increases compared to the second quarter of 2023 (+1.6%). In the same period GDP increases by 0.2% quarter-on-quarter and by 0.9% year-on-year.

The number of employed people increases by 124 thousand units (+0.5% compared to the first quarter of 2024), following the growth of permanent employees (+141 thousand, +0.9%) and of self-employed (+38 thousand, +0,7%) which more than offset the fall of temporary employees (-55 thousand, -1.9%); the number of unemployed decreases (-84 thousand, -4.6% in three months) and the number of inactive people aged 15-64 increases (+32 thousand, +0.3%). The rates show a similar trend: the employment rate rises to 62.2% (+0.2 percentage points), the unemployment rate falls to 6.8% (-0.3 percentage points), and the inactivity rate for people aged 15-64 remains stable to 33.1%. In the provisional data for the month of July 2024, compared to the previous month, the increase in the number of employed people (+56 thousand, +0.2%) and in the employment rate (+0.1 percentage points) is associated with the decrease of the unemployment rate (-0.4 points) and the increase of the inactivity rate aged 15-64 (+0,2 percentage points).

In the second quarter 2024, employment also increases compared to the second quarter of 2023 (+329 thousand, +1.4% in one year), involving, also in this case, permanent employees (+3.3%) and self-employed (+0.6%) in contrast to the decrease in temporary employees (-6.7 percentage points); the number of unemployed continues to fall (-194,000 in one year, -10.2%) and, at a slower pace, the number of inactive persons aged 15-64 (-32, thousand, -0.3%). This trend is reflected in the growth of the employment rate (+0.7 percentage points compared to the second quarter of 2023) and the decrease in the unemployment (-0.8 percentage points) and inactivity rates (-0.2 points).

On the enterprise side, on a quarterly basis, total employee jobs continue to grow, recording an increase of 0.5% in total and in the full time component, slightly lower for the part time (+0.4%). On a annual basis, the growth of total employee jobs continues in this quarter, equal to 2.6% in total and in the full time component, slightly higher compared to part time (+2.4%).

The hours worked per employee show a decrease on a quarterly basis (-1.0%) and an increase on annual basis (+0.3%). The use of short-time working allowances slightly decrease to 7.5 hours per 1,000 hours worked (-5.8 hours per 1,000 hours worked with respect to the second quarter 2023). The job vacancy rate decreases both compared to previous quarter (-0.1 percentage points) and  with respect to the same quarter of the previous year (-0.3 percentage points).

Total labour cost rises at a significant pace, equal to 1.9% on a quarterly basis, mainly driven by both wages (+1.7%) and social contribution (+2.4%); compared to the same quarter of 2023, labour cost increases equal to 4.5% due to a marked increase both in the wage component (+4.7%) and in social contributions (+4.4%). This pacularly high increase of total labour cost is mainly due to a concentration, in this quarter, of payments scheduled by some National Contracts renewls in the private sector.