Italy’s unemployment rate reaches all-time high

The unemployment rate in Italy reached an unexpected all-time high in the first quarter, according to the National institute of statistics reports released on Friday. Increased from the previous quarter of 11.4%, unemployment rate stood to an unexpected 11.9% as it picked up to 12.0% in April month-on-month.

Joblessness (ITMUURS) increased by 12 percent after March reading was revised up from 11.5 percent to 11.9 percent  ,according to reports from the  national statistics office lstat.

Italy’s recession will continue through the year and the economy will contract 1.8 percent in 2013 as the effects of the economic tightening and credit conditions will hold down the economic activity, the Organistation for Economic Co-operation and Development (OECD) .

Employment rate are expected to fall, as cutting household budgets and spending. According to OECD, part of the cause of the quick rise of the unemployment rate back in 2012, was due to the increase in the labor force.

Last year, Italy’s gross domestic product (GDP) went down by 2.4 percent and the European Commission (EC) expects the economy should contract 1.3 this year.  Public debt-to-GDP ratio is expected to reach 132.2% of GDP by 2014, EC data also showed.

Italy’s Prime Minister Enrico Letta said that employment will be the top priority of his government. The unemployment rate between the age range of 15 to 24 rose to 40.5 percent in April.