Italy's unemployment rate soared to a near 40-year high of 12.6% in July, according to the data from the national statistics office Istat. Such a record high figure was mainly driven by an increasing number of jobless men while, on the contrary, unemployed young people became less numerous.
The unemployment rate edged up to 12.6% in July after 12.3% in June. The indicator added 0.5% versus July 2013.
Youth unemployment, measuring job-seekers between 15 and 24 years old, fell to 42.9% from a record 43.7% in June.
On the whole, Italy’s jobless rate set to rise since early 2011, when the economy plunged into the longest recession since World War II. Employed nationals represented 55.6% in July after 55.7% in June.
Meanwhile, the GDP growth in Q2 is expected to be in the range 0.1%-0.4%. However, according to the flash estimates, Istat predicts the economic growth to slow down in Q3 2014 followed by the acceleration in the final three months of the year. For the reference, Italy’s economy shrank 0.2% in Q2 2014 as compared to the previous quarter which recorded a 0.1% decline.
Italy’s economy suffered a 0.3% drop year-on-year after the revised 0.4% decline in the period from January to March.
Matteo Renzi, Italy’s Prime Minister, is trying to do his best to reverse the economy back to positive dynamic after the two-year slump. To make things worse, Italy is currently facing the unemployment peak as well as a decline of the average rate of crediting private businesses.
Earlier, in June 2014 Italy’s central bank downgraded its forecast of the GDP growth in 2014 to 0.2% after 0.7%.
