The unemployment rate is expected to fall to 12.5 percent from 12.7 percent in 2014, and to 12 percent in 2016.
The agency said the number of people in jobs will rise by 0.6 percent this year and 0.9 percent next year.
The positive outlook comes after Istat registered a 0.1 percent rise in unemployment to 12.7 percent in February, from January.
The youth unemployment rate also increased by 1.3 percent to 42.6 percent between January and February.
Italy’s economy will grow by 0.6 percent this year, after contracting again in 2014, while growth will rise to 1.4 percent in 2016, according to forecasts published by the European Commission earlier this week.
Exports will be the main driver of the growth, aided by a weaker euro, with the pace of growth picking up next year as Italy benefits from increasing external demand and investment.
The EC also said that the unemployment rate will marginally decline in 2015 and stabilize in 2016.