Italy's employment rate hits record high of 62.7 per cent

ROME: Italy's employment rate rose to 62.7 per cent in October, the highest level recorded since the statistical series began in January 2004, according to figures released on Tuesday by the Italian National Institute of Statistics (Istat).

The Italian News Agency (ANSA) quoted the national statistics agency as saying that 24.208 million people were employed in Italy in October.

Employment increased by 75,000 compared with September and by 224,000 compared with October 2024, raising the employment rate by 0.1 percentage point, based on provisional data.

Istat reported that the unemployment rate dropped by 0.2 percentage point to 6.0 per cent in October, while the youth unemployment rate declined by 1.9 percentage points to 19.8 per cent. The inactivity rate remained stable at 33.2 per cent.

Meanwhile Italy's service sector expanded for a 12th consecutive month in November and at the fastest pace since April 2023, a survey showed on Wednesday, raising the prospect of firmer growth in the euro zone's third-largest economy.

The HCOB Purchasing Managers' Index (PMI) for services climbed to 55.0 last month from 54.0 in October, moving further above the 50 threshold that separates growth from contraction.

A Reuters survey of 14 analysts had pointed to a reading of 54.0.

November's rise "was underpinned by a surge in new business, which grew at the fastest pace since mid-2024, driven by successful client acquisition," said Hamburg Commercial Bank AG economist Nils Muller.

"Export orders, however, slipped back into contraction, with some firms reporting persistent global headwinds and weakness in the automotive sector," Muller said.

The overall new business subindex climbed to 54.8 from 54.6 the month before, while the indicator for new export orders decreased to 49.0 from 50.5.

HCOB's sister survey for Italy's smaller manufacturing sector, published on Monday, pointed to modest growth last month after stagnation in October.

The composite PMI, combining manufacturing and services, rose to 53.8 in November from 53.1 the month before, posting the highest reading since April 2023.

The European Central Bank has urged Italy to reconsider a parliamentary amendment asserting that the national central bank's gold reserves belong to the Italian people, a document published on Wednesday showed.

The Bank of Italy, a public institution independent of the government, owns the world's third-largest national gold stockpile, behind the US and Germany. Its 2,452 metric tonnes of gold are worth $300 billion, roughly 13% of Italy's national output.

"The Italian authorities are invited to reconsider the draft provision, also with a view to preserving the independent performance of the Bank of Italy," the ECB said, adding it was not clear what the concrete purpose of the draft provision was.

The remarks may prompt the ruling coalition to drop its claim on people's ownership of gold reserves, which was tabled as an amendment to next year's budget.

The ECB said it had issued its opinion after receiving two requests for comment from Italy's Treasury, on November 28 and December 1.

Politicians of all parties have sought for years to clarify ownership of the gold, with some eyeing a possible sale to cut public debt or fund tax cuts and spending. All such proposals have met resistance from European Union authorities.

"When carrying out the task of holding and managing gold reserves, neither the ECB, nor a national central bank including Bank of Italy, nor any member of their decision-making bodies, shall seek or take instructions from any government of a member state," the ECB said on Wednesday.

It warned that a transfer of gold or foreign reserves off the Bank of Italy's balance sheet would circumvent the prohibition on central banks financing the public sector.

The Bank of Italy says on its website that gold could be used as collateral for loans or, as a last resort, sold to buy the national currency to support its value.

Meloni's party had already softened its proposal by removing a reference to the state to avoid ECB criticism. The initial amendment said: "The gold reserves, managed and held by the Bank of Italy, belong to the state, on behalf of the Italian people."

The ECB also said Italian authorities should consult with the Bank of Italy if they wanted to press ahead with plans to clarify the legal ownership of gold reserves.

The opinion comes amid growing concern in European capitals over policies pursued by US President Donald Trump, which have raised questions about Federal Reserve independence.

Sources have told Reuters that some central bank officials have even considered pooling dollar and gold reserves outside the US if the Fed, perhaps under Trump's influence, were to shut its emergency liquidity line to the ECB - a backstop banks have relied on since the financial crisis.

Agencies