Greek Unemployment’s New Record: 27.9%



unemployment _GreeceMore bad news for the Greek government’s plan to reduce the jobless rate as the country’s statistical agency ELSTAT said it set yet another record in June, hitting 27.9 percent amid predictions it could eventually top 30 percent.

It’s even worse for those under 25, at some 58.8 percent not counting the young who have fled in a mass exodus to other countries in search of a job and a better life, giving up on their homeland.

ELSTAT reported that the jobless rate had risen from 24.6 percent the previous year. In June 2008 before the global financial crisis bared its teeth and Greece entered recession, the rate stood at 7.3 percent, showing an incrase of 20.6 percent in five years.

The jobless total stood at just over 1.4 million. In addition, around 3.33 million people in Greece are considered inactive, just shy of the 3.63 million in work. Crushing austerity measures imposed by the government on the orders of international lenders have kept Greece in a recession for six years and counting, cut disposable income nearly in half and produced less-than-expected tax revenues.

The government is also planning to fire as many as 40,000 public workers over the next couple of years, adding to the lines at the unemployment office. Prime Minister Antonis Samaras said he will have the economy on the road to recovery and a return to international markets next year and has repeatedly said he wants to cut the jobless rate but hasn’t proposed any programs to do so yet.

Europe’s statistics office said the number of unemployed in the Eurozone was down by 15,000 to 19.23 million, marking the second consecutive fall since April 2011. The jobless rate remained at a record of high of 12.1 percent.

EU youth unemployment in July remained high with a total of 5.56 million under 25 registered as unemployed, even though it dipped slightly from 23.5 to 23.4 percent on the month. For the Eurozone, it rose by 0.1 point to 24 percent.


8 COMMENTS

  1. The real Greek Unemployment’s New Record is 67.9% and counting…Government officials never publish the correct figures…

  2. This is Greece’s problem.
    1) Huge tax evasion. The average German pays more than the average Greek in taxes. Even though, on paper Greeks actually have higher taxes.
    2) Benefits regardless if economic status… Imagine having a well off person, not filing taxes, yet being classified as ‘poor’ and getting government credits.
    3) In most societies, work = job = pay. In Greece, Job = Pay. Work… Not required for the public sector.

    Greece themselves sent teams and checked several ministries and the people that were suppose to be at work, at least 5% could not be found, even though they receive paychecks and were told a month in advance of the office visit. Imagine how much higher the % would have been if people didn’t know in advance of the office visit?

    Greece needs to decide with action.
    -If someone has no work, should they still get paid?
    -If someone lied about their education, should they still be employed? (People saying they received PhDs when they actually never did)
    -If someone broke the law, was found guilty, and went to jail, should they still get paid?
    -If someone is reporting that it is a work day, but they are somewhere else, should they still get paid? (i’m not talking sick days or vacation days)

    Presently this makes up 10% of the Greek public sector labor force. 10%…. That’s enough for Greece to not need another austerity package.

    Is Greece ready to change their constitution? All the above actions are protected by the Greek constitution.

  3. agree with everything you say. throw in the highest military spending as a % of gdp in addition to the euro making greece very noncompetitive, among other downfalls with the euro, and you have a perfect recipe for disaster.

  4. things can be a lot easier when you control your own monetary policy (fiscal irresponsibility aside) via your currency and start with a clean slate. at the least it takes one part of the toxic cocktail out of the equation.

  5. Greece has always had this option. Simply exit the euro and print your own currency. Even if it had never entered the euro, its loans would have still been in euro or USD, but at a much higher interest rate.
    In hindsight, it could have converted to its own currency, caused chaotic inflation to help it balance its expenses, and then taken out loans from the IMF. This would have made it easier in the long-term to pay off the debt…. But then in the long-term it would have always made it more expensive to borrow, because it would have its own currency and because of the country’s historical default risk. Sure, things would be easier to fix in the short-term, but but in the long-term….loans would result in more expensive to take in, which means slower growth.

  6. what got Greece into trouble is actually what you just described – below market, non free-market interest rates on the loans they took between 2004-present. not to mention it is not necessarily the amount of interest that matters, but more so the principal amount.

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