Italian Families Face Growing Poverty: Eurostat Reports Italy Below EU Average

“`html

Italian Families Facing Increasing Poverty

Italian families are experiencing a mounting financial strain, with real income diverging significantly from the EU average.
This grim portrait is drawn from Eurostat’s findings on the state of wealth in Italy.

In 2023, Italy saw a marked decline in real gross disposable income for households.
This downturn is primarily attributed to sharp price increases, leading to a situation where income levels are more than six percentage points below those of 2008.

European Comparison

While the average disposable income across Europe has risen slightly—from 110.12 to 110.82 (using 2008 as the baseline of 100)—Italy’s figure has dropped from 94.15 to 93.74.
This positions Italy not only lower than many EU counterparts but also only marginally ahead of Greece, which recorded a gross disposable income of 72.1% compared to 2008 in 2022.

The income comparison reveals a widening gap from wealthier nations.
Germany’s 2023 figures reflect an impressive 112.59%, while France has surpassed its 2008 level with a value at 108.75%.
Spain, on the other hand, remains underneath its 2008 threshold at 95.85%.

Improvements in the Labor Market

Eurostat also highlights contrasting trends in the labor market, showcasing improvements in employment and declining unemployment rates.
Notably, the percentage of workers at risk of poverty has fallen below 10% for the first time since 2010.

Despite positive shifts, labor and education metrics in Italy still trail behind EU averages.
The employment rate for individuals aged 20-64 increased from 64.8% in 2022 to 66.3% in 2023—an increment of 1.5 percentage points—yet the EU average rose by 0.7 points from 74.6% to 75.3%, keeping Italy near the bottom of the European rankings.

Declining Unemployment Rates

Italy’s unemployment rate saw a decrease of 0.4 points, dropping from 8.1% to 7.7%.
This trend seems poised to strengthen in 2024.
In contrast, the EU average only fell slightly by 0.1 points, from 6.2% to 6.1%.
Additionally, there’s been a noteworthy decline in NEET rates (young individuals not engaged in education, unemployment, or training), which has decreased from 19% to 16.1%—the lowest since records began in 2009.

Long-term unemployment, classified as individuals jobless for over a year, has also significantly decreased in Italy, falling from 4.6% to 4.2%.
Yet, this remains above the EU average of 2.1%.

Reduction in Poverty Risk

A further positive development is the notable reduction in poverty risk among workers, which has dropped to 9.9% compared to 11.5% in 2022.
The European average stands at 8.3% for 2023, with Italy having reached a peak of 12.2% between 2017 and 2018.

Educational outcomes are also improving, with early school dropout rates declining from 11.5% to 10.5%, a statistic that, while better than Italy’s previous records, still lags behind the EU average decrease from 9.7% to 9.5%.

Graduation rates among individuals aged 30-34 have increased from 27.4% to 29.2% by 2023, although this is still notably below the EU average which rose from 42.8% in 2022 to 43.9%.

“`