Italian Unemployment Hits Record High In September

(RTTNews) - Italy's unemployment rate increased more-than-expected in September and reached a record high as economic activity continued to be dragged down by the ongoing recession, and placements stalled amid fears that a recovery is unlikely in the near future.

The seasonally-adjusted unemployment rate advanced to 12.5 percent in September from 12.4 percent in August and 12.1 percent in July, data released by statistical office Istat showed on Thursday.

The September figure was the highest ever registered since records started in 1977. Economists had forecast a decline to 12.3 percent.

The number of unemployed persons increased 0.9 percent month-on-month to around 3.2 million in September. Compared to September 2012, unemployment climbed 14 percent.

The jobless rate for the young population, aged between 15 and 24, climbed to a record high of 40.4 percent in September from 40.2 percent a month earlier. There were around 654,000 unemployed youth in the country at the end of September.

The employment rate decreased to 55.4 percent in September from 55.6 percent a month earlier. The number of employed persons dropped 0.4 percent sequentially to around 22.35 million during the month.

Amid rising unemployment, households are more downbeat on prospects of the Italian economy. Last week, latest survey data showed that confidence among Italian consumers weakened in October, with all sectors of the economy showing deterioration in sentiment.

Separate data from the statistical office today showed that inflation in Italy unexpectedly slowed to 0.7 percent in October from 0.9 percent in September.

The Italian economy contracted at a faster quarter-on-quarter rate of 0.3 percent in the second quarter than 0.6 percent in the first quarter, extending the recession that started in 2011. The International Monetary Fund expects the economy to contract 1.8 percent this year and expand 0.7 percent in 2014.

A report from Eurostat showed today that the Eurozone unemployment rate held steady at a record-high of 12.2 percent in September after the rate for August was revised up from 12 percent.