Work, but be able to afford to spend less and less. It is one of the paradoxes that best describe the economic situation of many Italians in 2026 and which, to date, is not just a sensation but a widespread condition supported by data. In fact, comparing the data on work and inflation in Italy released by Istat on Tuesday 1 September, what emerges is a fracture between the stability of employment and the actual well-being of families.
These are two different reports but which, once analyzed together, confirm this economic short circuit.
More employment, but not for everyone: age groups still penalized
Taken individually, the data on the labor market in Italy can be interpreted in a positive light. The increase of 307 thousand employed in one year is certainly an encouraging sign for the economy, as is the drop in unemployment to 5.8%. In the same period, both the number of people looking for work decreased by 0.9% and the number of inactive people aged between 15 and 64 decreased by 2.5%.
Compared to a year ago, there are more people employed and fewer people looking for work, but within these numbers a first important difference emerges, that is, employment growth is not uniform by age. In July 2026 they are in fact:
- increases in employment between 25 and 34 years old and among those over 50;
- those between 15 and 24 years old and between 35 and 49 year olds decreased.
Therefore, employment is being created in Italy, but it does not mean that all workers are benefiting to the same extent from this improvement.
Work is increasing but so is inflation: how much prices have grown
If we look at the Istat report on the cost of living, the first element of contrast with the employment trend emerges precisely here. That is, we have two data, namely:
- the number of employed people grew by 1.3% on an annual basis;
- the general price level in August 2026, increased by 3.3% compared to last year and by 0.5% compared to the previous month.
This comparison, alone, does not allow us to say that Italians are poorer. But it explains why the increase in employment does not necessarily coincide with an equivalent increase in economic well-being. Whether a person finds a job or increases their income, the outcome depends on how much of that income remains available after paying for goods and services. A guaranteed salary alone is not enough if it is eroded by inflation and loses its purchasing power.
It’s true, Italy is not experiencing a situation in which employment decreases and prices increase at the same time (that would be a decidedly more problematic scenario). However, something more complex is happening in the country: employment is growing, but so is the cost of living.
Because Italians are becoming impoverished
The impoverishment of Italian families does not only occur through the loss of jobs – which remains stable – but is certainly driven by the growing weight of the shopping cart and bills. In August:
- the prices of high-frequency purchase products increased from 3.4% to 4.3%. This means that families spend more on everyday things, such as electricity, gas and essential goods;
- the costs of unregulated energy services went from an annual growth of 11.4% to 16.9%, while those of regulated energy rose from 14.8% to 18.8%.
On a monthly basis, transport-related services also contributed to the increase in the index, with a monthly change of 1.4%.
How many Italians are at risk of poverty
This scenario of widespread vulnerability is not only confirmed by statistical analyses. The latest national report from Caritas, in fact, describes a problem that is now chronic and no longer episodic. From what emerged this year:
- over 282 thousand people asked for help;
- the so-called working poor between the ages of 35 and 44 have increased. 31.7% of those who asked for help already had a job which, however, was not a sufficient shield against poverty.
Furthermore, according to data published by the Alliance against Poverty, in Italy there are:
- approximately 5.7 million individuals in conditions of absolute poverty (equal to approximately 2.2 million families, 8.4% of the total) and 1.28 million minors involved;
- Added to this audience are almost 11 million people at risk of poverty, caught between the rising cost of living and wage dynamics that are struggling to keep up.
Therefore, Italians formally continue to work, but their purchasing power diminishes month after month, transforming the management of the family budget into an increasingly complex activity.
