Italy April jobless rate plunges to 12-year low as people give up work search amid coronavirus crisis

ROME: Italy's unemployment rate plummeted to 6.3 in April, the lowest for more than 12 years, data showed on Wednesday, as people stopped looking for work due to the coronavirus emergency.

Some 274,000 jobs were lost in April, as firms were forced to shut due to a government-imposed lockdown to try to curb the epidemic.

Only people actively looking for a job count towards the unemployment rate.

Analysts completely misread likely labour market developments in April for a second month in a row, with a Reuters survey of 12 economists forecasting a rise in the jobless rate to 9.5pc.

April, which saw the lowest unemployment rate since November 2007, is the second month of jobs data to reflect the impact of Italy's outbreak of coronnavirus which came to light on Feb 21.

ISTAT revised down the unemployment rate for March to 8.0pc from a previously reported 8.4pc.

The government's lockdown measures have brought the economy to its knees, with all companies shuttered throughout most of March and April barring those deemed essential for the national supply chain.

Rome has pledged more than 75 billion euros in financial support for firms and families, and Economy Minister Roberto Gualtieri has said repeatedly that "nobody must lose their job because of the coronavirus."

In the three months to April some 226,000 jobs were lost compared with the November-to-January period, ISTAT said.

Until the virus outbreak the Italian labour market had held up relatively well, despite an economy which has been broadly stagnant for over a year and contracted by 0.2pc in the last quarter of 2019 compared with the previous three months.

In the first quarter of this year gross domestic product plunged 5.3pc, the steepest quarterly drop since the current series began in 1995.

The second quarter, which contains more days affected by the lockdown, is expected to post an even steeper decline, before a partial rebound over the second half of the year.

In April, the youth unemployment rate, measuring job-seekers between 15 and 24 years old, fell to 20.3pc from 26.5pc to post its lowest level since February 2008.

Italy's overall employment rate, one of the lowest in the euro zone, fell in April to 57.9pc from 58.6pc in March to register the lowest level since June 2017, ISTAT said.

The inactivity rate, measuring those neither in work nor looking for work as a proportion of the working age population, rose in April to 38.1pc from 36.1pc, to its highest level since June 2011.