Unemployment falls to 6.3% in April, as in Germany

It seems like a paradox. In April, the unemployment rate dropped to 6.3% from 8.0% in March, Istat notes. This is the minimum since November 2007, before the great financial crisis. The effect of the lockdown weighs, with 484 thousand fewer people looking for work (-23.9%) than in March. They decrease most among women (-30.6%, equal to -305 thousand units) compared to men (-17.4%, equal to -179 thousand), with a drop in all age groups, and among young people, to 20.3% (-6.2 points). Overall, the number of unemployed, precisely those who are on the hunt for a job, therefore falls to one million and 543 thousand.

In the euro zone, unemployment is rising to 7.3% in April, after 7.1% in March. In the whole European Union, it rises to 6.6% after 6.4%, indicates Eurostat. It estimates 14.079 million unemployed, of which 11.919 million in the euro area. Compared to March, the unemployed increased by 397 thousand units in the EU and 211 thousand in the euro area.

The pandemic also affects the number of employees. In April the Italian occupation registered a decrease of almost 300 thousand units, which led in the two months of March and April to an overall drop of 400 thousand employees and a percentage point in the employment rate. «The unemployment rate in just two months decreases by almost three percentage points and that of inactivity increases in a similar way. The trends detected in the labor market in April involve both gender components and all age groups, “explains the statistics institute.

The latest Istat data highlight the enormous differences between our system and the American labor market, where the lockdown has raised the number of unemployed to around 40 million, while the unemployment rate jumped to 14.7% from 3.5% recorded in February. The trend is still different in Germany, where in May the unemployment rate at the unadjusted level rose to 6.1% from 5.8% in April, which became 6.3% at the adjusted level, with 170 thousand more unemployed, for a total of 2.8 million unemployed. But here there are also 10.7 million workers in Kurzarbeit, i.e. part-time thanks to state subsidies, of which 7.3 million added only in May, the highest number in German history, according to the Ifo research institute of Munich. At the peak of the financial crisis in May 2009, for example, there were only 1.5 million workers in Kriarbeit.

The problem is what will happen on the Italian labor market in mid-August, when the redundancy fund will end, introduced by the government for only 9 weeks.