While Italian output is still below its pre-crisis level, it has now returned to a growth path. Figure 2. Euro area unemployment rates (ppt slide) Positive developments in output and growth have also suggested encouraging trends in the labour markets. Euro area aggregate unemployment dropped to 8.5% in March 2018. The unemployment rate is trending down in almost all Member States.
The German unemployment rate has dropped to a record low 3.5%, whereas unemployment remains persistently high in the countries that suffered most from the financial crisis; here in Italy it is 11.0%. Overall, there was a strong expansion in the euro area economy in 2017.