The number of people out of a job dropped by nearly 500,000 year-on-year in November, taking the unemployment rate to 11.3 percent, 0.2 percentage points down from October.
This is its lowest level since November 2012, when it stood at 11.2 percent.
"Italy is back on track, back at work," Prime Minister Matteo Renzi tweeted in reaction to the data which he said demonstrated the success of his signature Jobs Act, a package of labour law reforms.
November also saw a dent in youth unemployment, where the rate dropped by 1.2 points to a still very high 38.1 percent of 15 to 24-year olds being out of a job.
The overall number of employed people rose by 36,000, or 0.2 percent, in November after two successive months of declines.