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Italy's GDP increased by 0.5% in 2025, falling short of the eurozone average for the second year in a row. Employment climbed by 180,000, and the unemployment rate decreased to 6.1%, but structural issues remain: the working-age population has shrunk by over 70,000 individuals in the last year, and more than 12 million people are still inactive, with women accounting for two-thirds. In an era of rapidly aging populations, increased labor force participation and human capital development are becoming increasingly important for economic growth. The 3.1% increase in contractual salaries in 2025 has supported a recovery in purchasing power, but real hourly wages are still more than 8% lower than the 2020 average. The primary issue is productivity: without a considerable improvement, it will be difficult to sustain incomes, competitiveness, welfare, and public budgets in the long term.
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