The unemployment rate drops to 11.1% in April: minimum since 2012
To celebrate these are above all those who are over 50 years old: compared with the year 2016, there are 277 thousand more employees, thanks to the growth of 362,000 at work. The unemployment rate is stable among young people at 34 per cent.
Net decrease in the unemployment rate in Italy: in April the figure of unemployed is down to 11.1 percent, down 0.4 percentage point in one month and 0, 6 points over the year, reaching a trough In September 2012. The annual decline is 4.8%, in the amount of -146,000. Among youth, the unemployment rate remains at 34%. Last month, the Italian labor market saw employment growth of 94,000 people. + 0.4% compared to March at 57.9% and the highest since 2009. But the statistics highlight a phenomenon that marked the resumption of work in Italy in recent times: the increase in employees – particularly for men, affects people over the age of 50, and to a lesser extent, those aged 25-34, while there is a decline in other age groups. Still on an annual basis, in April, the unemployed (-4.8%, equal to -146,000) and inactive (-1.4%, equal to -196,000) were reduced.
Consequences for the real estate market
If there are more workers, there are more people who can borrow to buy real estate. The real estate market can only benefit from a decrease in the unemployment rate. The chart below shows a decline in real estate prices in Milan from 2015, which had already begun to stabilize somewhat in recent months.
Now let’s look at the chart showing the evolution of rent prices in Milan, again for the same period: the constant increase predicts that sales prices will soon follow the same direction of rent prices, because rents increase only when there is a corresponding increase in purchasing power. Increase that will benefit the price of real estate.
Conclusion: it’s a good time to invest in real estate in Italy
Indeed, given the economic recovery that seems to be consolidating, everything predicts that real estate prices have reached their bottom, and will start to rise, albeit slowly.