The unemployment rate of Italy reaches its lowest level since 2008 at 6.5%
Giorgia Meloni’s economic policies are showing significant results in Italy, with the unemployment rate dropping to 6.5% in September 2024, the lowest since 2008. This development is seen as a major success for Meloni’s government, which has been under scrutiny since she took office in October 2022 as Italy’s first female Prime Minister. This watchfulness is because she is leading the most right-wing government of the country since World War II.
Meloni’s approach has been a mix of pragmatic and conservative policies. She was initially feared for her potential eurosceptic and radical economic measures, but Meloni instead adopted a more cautious and calculated strategy. For instance, she largely continued the economic reforms initiated by her predecessor, Mario Draghi. This included maintaining conservative fiscal policies, supporting post-pandemic recovery efforts, and aligning closely with European Union norms, particularly in areas like migration and energy policy.
Stimulating job creation and cutting red tape
One of the key factors contributing to the decline in unemployment in Italy has been Meloni’s focus on labor market reforms. But also cutting red tape for businesses. Her government has implemented policies aimed at stimulating job creation, especially in the private sector. To reach that goal, she offered tax incentives and reduced bureaucratic hurdles for small and medium-sized enterprises. Additionally, Meloni has placed a strong emphasis on vocational training and apprenticeships, to better align the workforce with the needs of the economy.
While these policies have started to bear fruit, challenges remain. Italy’s economy, though showing signs of improvement, still faces significant hurdles. It is possible to underline the high public debt, and slow growth compared to other EU nations. Moreover, some of Meloni’s proposed reforms, particularly those targeting welfare programs like the citizen’s income, have sparked controversy and opposition. This especially comes from regions in southern Italy, where unemployment remains a critical issue.
Overall, Meloni’s economic agenda is characterized by a balance between pragmatic governance and conservative principles. She has so far managed to reduce unemployment and stabilize the economy. But the long-term sustainability of these gains will depend on how well her government can navigate the ongoing economic challenges.
