Unemployment is also expected to rise to 12.4 percent by the end of this year and 12.7 percent by the end of next year.
The report comes as European ministers meet today at a summit in Brussels to tackle rising unemployment.
Italian prime minister Enrico Letta on Wednesday announced a €1.5 billion package to get an estimated 200,000 young Italians into work.
Unemployment in Italy reached a record high of 12 percent in April, according to a recent report by Istat, the national statistics agency.
In May the EU reported that more than 3 million people were unemployed in Italy, with 655,000 under-25s out of work.
Thousands took to the streets in Rome last weekend to protest against soaring unemployment.