Eurostat data shows that those who are unemployed are unlikely to return to the job market indicating that long-term unemployment in Greece is becoming a structural problem. Eurozone statistics show that 15.4 percent of unemployed in the fourth quarter of 2015 managed to find a job in the first months of 2016 whereas the rate in Greece lagged to just 4.3 percent – the lowest in the euro area.
In Spain – a country that is also facing an explosive rate of unemployment – 16.1 percent of jobless managed to return to the job market, an amount that is higher than the Eurozone average, whereas the rate in Portugal was at 20.2 percent.
A study by the International Monetary Fund (IMF) shows that Greece will continue to battle with high joblessness over the coming decades with structural unemployment at 20 percent. IMF technocrats estimate that unemployment will be at 18 percent in 2022 and will have subsided to 12 percent in 24 years by 2040.
The prospect of single-digit rates is still a long way away with 6 percent positive in the distant future by 2060 under the right conditions.