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The increase in VAT from 11% to 13% along with other stringent economic measures will cost the jobs of around 300,000 people. This is the conclusion of the General Confederation of Craftsmen and Workers in Greece for the new measure set in the 2011 revenue budget, which the government hopes to collect an additional 800 million euros. Their forecasts are based on the National Statistics Service data, which show that unemployment in August 2010 reached 12.2% compared with 9% over the same period in 2009. Employment decreased by over 165,000 people and compared with July 2010 the unemployment increased by over 40,000.

"The data show that unemployment increased mostly because of reduced vacancies, not just because of young people entering the labour market," said the Confederation in an open letter to the mass media. According to initial estimates of the union, the number of unemployed in the second half of the year should be increased by not more than 120,000 people compared to the same period of 2009. The Confederation of Craftsmen and Workers in Greece stated at the end of November that the year will end with over 300,000 unemployed. People in productive age between 25-54 years are now in the ranks of unemployed.  

The economic crisis and the new reality it brought in Greece has changed many of the dogmatic views about the life in the country. Firstly, much of the Greeks began to realize that security in the future, whict they were used to for many years, is not guaranteed. The life and habits built up to now proved to be borrowed and it's time someone to pay the bill. Trade, small-scale production, small entrepreneurs and, of course, consumers have proved to be the first victims of the stringent economic measures that struck the fallen overboard as a life-belt of steel.

The new reality has also changed people’s interests - the comedy series of Generation of 592 Euros were launched on Mega TV this season, the host of the morning show of Alter TV George Avtyas published a book – Save an Euro to Help Your Income, and economic news are being watched almost like the Turkish serials during the week. GRReporter gathered opinions and stories of representatives of different strata of society to share their view on issues of employment in times of crisis.

The 30-year-old Eleni worked until early spring in the sales department of a family company, distributing promotional materials. After the crisis tightening, Eleni was the first in the list asked to leave voluntarily, because the other company employees were relatives. "I was out of work about a month and a half. I was looking for office work at that time – a job for which I am qualified and have experience. When I saw that there are no vacant positions I realized that it is time to reorient myself." The young woman noticed that the largest number of vacant positions was in coffee bars and clubs. "I started as a waitress and then I completed bartenders course. " She is currently working as receptionist in a tattoo studio during the day and three times a week she is working night shifts in a metropolitan club. "I will go on like that until the storm passes and new career opportunities open up again," she explained.
 
Quite different, but due to the same reasons, are the difficulties the 43-years-old Anna is experiencing. She owns two shops in the coastal district of Glyfada. She started her business with her husband 12 years ago importing youth clothing from abroad. She is retailer and wholesaler. The company has a staff of less than 20 people some of whom work in the administration of the company (marketing, accounting, warehousing, wholesaling) and the others work in the stores - retail sale. "The crisis has not omitted us like everyone else. The profit dropped after sales volumes fell. Many of our wholesale customers reduced the volume of orders, but new customers appeared. It is important to be able to keep them."

Staffing problems are mostly with the shop assistants who, because of the type of clothes that are sold, in many cases are young people aged between 18-25. Many of them are students and can not commit to full time work or ensure that they will remain in service for one year. The solution for them is short-term service contracts that provide health and retirement benefits, but are for two months and hourly wages. Thus, the employer ensures the employee's rights and both parties are happy.

Until recently, however, these temporary contracts were disapproved because they were not included in the collective labour agreements between employers' organizations in the country (Hellenic Chamber of Commerce, Union of Greek Industrialists, etc.) and trade unions in the country. Following the recommendation of the International Monetary Fund, the European Central Bank and the European Commission for liberalization of the labour market, the Minister of Employment and Social Security has decided to approve the sector and individual contracts. They allow employers in financial difficulty not to resort to dismissals just because they are not able to pay the salaries at the rate set in the collective labour agreements.

A total of over 1.8 million people are employed in small and medium enterprises in the country. Difficult economic conditions suggest breaking the system imposed by collective labour agreements that lack flexibility in times of economic difficulties. "If my bosses come to the company tomorrow and say we will reduce the salaries of all of you by 20% or we will fire 20 people, the salary cut is preferable - the lesser of two evils," admitted a worker to a Greek media a week ago, who wished to remain anonymous. This is the logic of the more flexible employment relations that could reduce the number of unemployed while the country returns to economic growth and labour market re-expands. The only opponents to the liberalization of the labour market remain trade unions which organize a nationwide strike in Greece on December 15.