Share03 June 2020In April there was a marked decrease in employment compared to the previous month and the decline in unemployed people looking for work already registered in March strengthened, with a further strong growth in inactivity. Istat points out that observing that the decrease in employment (-1.2% equal to -274 thousand units) is generalized: it involves women (-1.5%, equal to -143 thousand), men (-1.0%, equal to -131 thousand), employees (-1.1% equal to -205 thousand), independent (-1.3% equal to -69 thousand) and all age groups, bringing the employment rate to 57.9% ( -0.7 percentage points).
In April - comments the Institute - the effect of the COVID-19 emergency on the labor market appears decidedly more marked than in March: employment registered a decrease of almost 300 thousand units, which in the two months led to a overall decrease of 400 thousand employed and a percentage point in the employment rate.
Job seekers are falling
Job seekers (-23.9% equal to -484 thousand units) decrease more among women (-30.6%, equal to -305 thousand units) than men (-17.4%, equal to -179 thousand ), with a drop in all age groups. The unemployment rate drops to 6.3% (-1.7 points) and, among young people, to 20.3% (-6.2 points). The growth in the number of inactive people was also widespread (+ 5.4%, equal to + 746 thousand units): + 5% among women (equal to + 438 thousand units) and + 6% among men (equal to + 307 thousand). The inactivity rate stood at 38.1% (+2.0 points).
Unemployment rate drops to 6.3 percent
The unemployment rate drops to 6.3% (-1.7 points) and, among young people, to 20.3% (-6.2 points). Istat notes this. Job seekers (-23.9% equal to -484 thousand units) decrease more among women (-30.6%, equal to -305 thousand units) than men (-17.4%, equal to -179 thousand ), with a drop in all age groups.
How do you explain this data?
How do you explain this apparent contradiction between the collapse of the employed and the decrease in the unemployment rate? Unemployed are those who are actively looking for a job, and these people are statistically fewer. With the “Cura Italia” decree of March, in fact, the Conte government imposed a blockade of layoffs at 5 months, that is until after Ferragosto. Among other things, with the companies closed for the lockdown it is natural that no one has actively started looking for a job despite being "inactive".