The Best of GRReporter
flag_bg flag_gr flag_gb

Almost 15 percent of Greece's workforce remained outside the labour market in 2010

09 March 2011 / 21:03:05  GRReporter
8852 reads

Unemployment in Greece reached 14.8% in December 2010 and the number of unemployed increased by 73.3 thousand people compared with November the same year. Compared with December 2009 the number of unemployed of working age have increased by 228 thousand or 45.2%. These are the data of the National Statistical Service, which concluded that the number of employed declined to 4.23 million people at the end of last year having in mind that the total population of Greece is nearly 11 million people.

Male unemployment rate rose to 11.9% from 6.9% last year, while unemployed women in the last month of 2010 reached 18.7% from 14.8% in December 2009. Unemployment by age groups is highest among young people aged 15-24 years, 39% of them are outside the labour market. The next age group for which is also hard to find work is in the range of 25-34 years. 21% or one in every five people to the age of 34 years is unemployed.

Unemployment in Greece by regions is the highest on the Ionian Islands, where 23% of the population was unemployed in December 2010. Economic experts in Greece estimated that this phenomenon is not unusual for the islands in the country as they support mainly seasonal employment in the period between April and October each year. More serious, however, are the unemployment data in mainland Greece. After the height of the crisis and the closure of hundreds of small and medium companies areas such as western and central Greek Macedonia registered a serious rise in unemployment, 17.7% and 16.5%. respectively. The lowest levels are registered in the region of Attica with 14% unemployed and Peloponnese with 11.5%.

Meanwhile, the Deputy Minister of Labour and Social Security George Koutroumanis announced that an unemployed person costs the state directly and indirectly about 1000 euros per month. He spoke at the press conference, which presented the new government programmes to stimulate employment. Koutroumanis explained that the average loss for social security funds from the inclusion of an active citizen in the ranks of the unemployed is about 550 euros. The other costs incurred for the same citizen once he or she in enlisted in the labour offices and receives unemployment benefits amount to 450-500 euros.

To mitigate the impact of new data on unemployment, George Koutroumanis stressed that the government prevented the growth of unemployment by another 3% through the employment programmes developed so far. He also said that 282,000 jobs were kept in 2010.

The Minister of Employment and Social Security Louka Katseli spoke at the same press conference and presented the long-awaited new programmes to stimulate employment. This initiative is expected to open 192,000 jobs and the government has allocated a budget of 845 million euros. "This is the response of our ministry to the announced by the National Statistical Service increase in unemployment to 14.8% in December 2010, preserving at the same time the social economy," said Katseli. The Minister defined the two programs to fight unemployment as innovative.

The first is the new programme of social work for 55,000 unemployed. It has a budget of 280 million euros and will be piloted by the end of March 2011 in eastern Macedonia and Thrace. According to Katseli, the unemployment issue in these areas is the most serious and long-term. The program starts immediately and includes jobs at state institutions and municipalities. Cleaners, landscapers, people to take care of elderly and people with disabilities will be temporarily assigned. The people will be primarily employed in municipalities and communities where there is deficiency of workforce for small projects such as removing illegal signs, improving the urban infrastructure, assisting in schools and guides for younger students in crossing streets and the like.

The second program will start in the summer of 2011 and involves the development of new jobs by regions, according to the needs of different municipalities and the industries and economic activities developed there. This program includes educational seminars, which will provide training for the unemployed according to the open position and will be directly related with the economic dynamics of the region.

A total of 37,000 jobs could be opened with this project and its budget is 190 million euros. Those approved would be able to find work both in local government organizations and in private companies that have a shortage of specialized personnel. Louka Katseli gave the example of the marble mines in the town of Drama. There are large reserves in the northern city and these mines have the potential to help the economic development of the municipality but there are no skilled people to work there.

The programme of the Ministry aims to redirect the labour force to vital and profitable companies that will resist the current crisis and will help both to reduce unemployment and to restore positive economic growth. The two projects of the Ministry of Employment are open to all unemployed registered in labour offices who have been outside the labour market in the long and medium term. Young people at the age of 30 and employed in free professions can take advantage of the programmes. They must also be unemployed or of low income not exceeding € 12,000 or € 5,000 euros per family member a year.

 

Tags: EconomyMarketsUneploymentLabour officesGreeceEmployment programmes
SUPPORT US!
GRReporter’s content is brought to you for free 7 days a week by a team of highly professional journalists, translators, photographers, operators, software developers, designers. If you like and follow our work, consider whether you could support us financially with an amount at your choice.
Subscription
You can support us only once as well.
blog comments powered by Disqus