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Jobs Are Holding Up, but Locals Say the Cost of Living Is Rising

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interviews: Nastassja Martin

Friuli Venezia Giulia is expected to maintain a relatively strong labor market over the next three years, but economic growth will remain modest, according to the regional statistical report Regione in cifre 2026.

Forecasts by Prometeia, an economic research and consulting firm, project the region’s gross domestic product to grow by 0.5 percent in 2026, 0.4 percent in 2027 and 0.5 percent in 2028.

Employment remains relatively strong. The region has 528,000 people in work, while unemployment stands at 4.6 percent, below Italy’s national rate of 6.1 percent. But a significant gender gap remains: 74.5 percent of men are employed, compared with 64.2 percent of women.

In 2025, about 155,000 employment contracts were activated, with nearly 60,000 in commerce, transport, hotels and restaurants.

The business sector has remained broadly stable. Friuli Venezia Giulia has 86,572 active businesses, with 5,219 new registrations and 5,008 closures in 2025, producing a net increase of 211 companies. The number of sole proprietorships, partnerships and manufacturing businesses declined, while growth in construction companies leveled off.

At the same time, lending to the construction sector increased by 14 percent. New mortgages totaled €1.1 billion, with 44 percent granted to borrowers under the age of 35. Investment is expected to increase by about 2 percent.

Exports remain an important part of the regional economy. In 2025, exports were worth €20.3 billion, producing a trade surplus of approximately €9 billion.

But the broader economic picture is less reassuring for many households.

Average monthly household spending fell slightly, from €3,031 in 2024 to €3,018, while 47 percent of residents said housing costs were too high. In interviews with residents across the region, many described a similar experience, saying that the cost of everyday goods and services has continued to rise and that their income does not always keep pace with those increases.

Housing was a particularly common concern, with residents citing rents, mortgages and other household expenses as significant pressures. Others pointed to the rising cost of groceries and everyday purchases.

The comments from residents highlight a distinction between economic indicators and how people experience the economy in their daily lives. While unemployment remains comparatively low and exports and investment are holding up, many households say they have less room in their budgets than they did in previous years.

Demographic trends add another long-term challenge. The region has 1,194,496 residents, about 1,200 more than a year earlier, but births continue to decline. In 2025, 6,704 children were born, 191 fewer than in 2024.

The average age of the population has risen to 48.8 years, while foreign residents number 126,496, or 10.6 percent of the total population.

The figures therefore present a mixed picture: a relatively resilient labor market and strong export performance alongside slow economic growth, pressure on household budgets and an aging population.

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Nastassja Martin
Nastassja Martin is an intern at InTrieste and a Materials Engineering student at the Università degli Studi di Trieste. Originally from Albuquerque, New Mexico, USA she is passionate about writing, science, and meeting people from different cultures, she enjoys exploring Friuli Venezia Giulia, as well as cooking, rock climbing, and skiing.

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