Greece Sees Historic Drop in Unemployment Rate
In a recent update from the National Statistical Authority (ELSTAT), Greece has achieved one of its most significant economic milestones in years: a historic drop in unemployment. The December data reveals that the unemployment rate for the country has hit 7.5%, marking the lowest figure in 22 years. This achievement is particularly notable because it reflects not only a rebound from the depths of the economic crisis but also a stronger labor market performance.
ELSTAT reported that this improvement is largely attributed to a significant increase in employment numbers, with the number of employed individuals rising by 650,000 compared to the end of 2020. This upward trend has directly contributed to the decline in unemployment, as it indicates that more resources are being allocated to creating jobs rather than addressing other factors like retirements or early exits from the labor market.
Over the past six years, the number of unemployed individuals has fallen by approximately 435,000, representing a decrease of over 55% compared to the end of 2019. Concurrently, the number of economically inactive people—those neither employed nor actively seeking work—has decreased by about 220,000. This decline in unemployment is therefore attributed specifically to job creation rather than other labor market dynamics.
The gender divide in unemployment rates has also been a key factor in this positive trend. Women’s unemployment dropped sharply in December, reaching a single-digit rate of 9.9%, compared to the 20.6% recorded five years earlier. This improvement is particularly encouraging given that women’s unemployment rates remained consistently in double digits throughout the 2000s.
Similarly, youth unemployment saw a significant decline over the past year, falling from 35.5% in December 2020 to just 13%. This represents a marked reversal of the high unemployment levels observed during the economic crisis. While the youth unemployment rate is still above historical averages, this trend indicates improved prospects for young people entering the job market.
Additionally, it’s important to note that despite several increases in the minimum wage since 2019 and gradual rises in average wages within the private sector, the number of individuals actively seeking work has significantly decreased. This suggests that efforts to stabilize or increase income levels have not necessarily translated into higher demand for labor among job seekers.
In summary, Greece’s December unemployment data reflects a complex interplay of factors leading to historic improvement. The rise in employment rates, reduction in economically inactive individuals, and significant decreases in both women’s and youth unemployment highlight the country’s progress toward rebuilding its labor market. While challenges such as higher minimum wages and ongoing issues with job creation remain, these statistics paint a picture of sustained economic resilience and recovery.
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