ITALY'S INFLATION AND UNEMPLOYMENT RATE

ITALY'S INFLATION AND UNEMPLOYMENT RATE

In 2015, the unemployment rate was 14.38%. It gradually decreased over the years: 13.12% in 2016, 9.21% in 2021, and 8.57% in 2022. Overall, there is a clear downward trend in unemployment in Italy during the last decade.

Between 2013 and 2019, inflation was very low or close to zero (for example, 0.2% in 2014 or 0.1% in 2015). Starting in 2021, inflation rose sharply, reaching 8.7% in 2022 and 5.9% in 2023, before easing to 1.1% in 2024. This shows a strong inflationary spike after the pandemic and energy crisis.

conclusion

In Italy, unemployment showed a steady decline from 2015 onwards, reaching relatively low levels by 2022. At the same time, inflation remained very low until 2020, but then surged sharply due to the pandemic and energy crisis, before stabilizing again. This indicates that the rise in inflation was driven mainly by external shocks rather than domestic labor market tensions, which is why the typical inverse relationship between unemployment and inflation suggested by the Phillips Curve does not fully apply here.

Carmen Sánchez Gemma Fernández Ana González