Who is staying out of the labor market? Employment inactivity marked a slight decrease during 2025
Inactivity in employment refers to the part of the working-age population that is neither engaged in a job nor actively seeking one. This phenomenon can be related to various reasons, such as people who are not ready to start work within a certain period, students who are continuing their studies, individuals who cannot work due to health problems, as well as people who for personal, family or social reasons do not participate in the labor market.
If we refer to INSTAT data for 2025, what stands out is that employment inactivity is decreasing compared to the same period a year ago. The first quarter of 2025 marked the largest decrease, dropping to 23.3%, while at the end of the year inactivity reached 24.1%, marking a minimal increase.
If we look at inactivity by age group, it turns out that the most inactive age group in employment is the one from 15 to 24 years old. For this age group, inactivity has been increasing during 2025. Since members of this age group are usually engaged in pursuing studies, it is expected that the level of inactivity will be higher. Meanwhile, the age group 25 to 54 years old presents the lowest level of inactivity in employment, followed by the age group 55 to 64 years old, which also displays a relatively low level.
INSTAT data also shows that, in terms of gender breakdown, women have a higher level of inactivity in employment compared to men. At the beginning of the year, inactivity in employment was 29.1% for women and 17.2% for men. Meanwhile, at the end of the year this figure reached 17.4% for men and 30.6% for women, clearly showing the difference between them.
Another striking statistic is the relationship between education level and employment inactivity. People with lower levels of education have higher rates of inactivity. Specifically, those who have only completed 8–9 years of education have higher rates compared to those who have completed secondary or higher education. Meanwhile, individuals with higher education have the lowest rates of inactivity in the labor market.
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