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The Scientific Institute at the Trade Union of Private Eemployees made a shocking forecast for 20% unemployment, or 1 million unemployed, in 2011. Its estimate is based on the new law and regulations under which dismissals in private sector are facilitated and redundancy payments are reduced, when the employer handed a written notice to the employee promptly.

The Scientific Director of the Institute Savas Rombolis stated that there will be a record level of unemployment in 2011 for the past 50 years. According to Mr. Rombolis another 6% should be added to the forecasted unemployment rate. This is the percentage of seasonal or temporary employed people who are not included in the unemployment estimates as well as the long-term unemployed who do not want to find work.

It should be noted that unemployment in Greece is already rising, especially among women and young people. The rate rose to 11.9 % in April compared to the 9.4 % for the same month in 2009, based on data of the Statistical Office of Greece. The number of unemployed increased by 130,101 people or by 27.9% for one year. Based on age groups, it appears that the highest increase is observed in the group of young people between 15 and 29 years old (22.3%) and in the group of young women – 27.4%.

At the same time, the reduction of redundancy payments and the increase in the number of people in mass redundancies came into effect. Companies that have between 20 and 150 employees have the right to dismiss up to 6 people and companies employing over 150 people can lay off  up to 30 people. Deadlines for written notice for dismissal by the employer are increased according to the time of service in the company and range between one and six months. Employers who lay off an employee without a written notice are required to pay full compensation.

In Greece, 58 percent of the employment capacity of the country work in companies employing up to 9 people and 17.3 percent work in companies employing between 10 and 49 people. The small companies in Greece are over 820,000 and represent 96.5 % of the Greek companies in general, according to the newsletter of the European Commission. The Greek companies employing over 250 people are only 431, show the European Commission figures. Based on the same data, the number of SMEs in the country increased by 8% for the period from 2002 to 2008, which is less than the average European level of 13%. But employment in these Greek companies increased by 15% for six years, while this percentage in the European countries is 12%.