INE-GSEE study shows 20 years until unemployment drops bellow 10%

According to a study by GSEE’s Labor Institute, six out of ten unemployed are willing to accept any salary offered by an employer, while 37% of unemployed rely on their families to survive.

The study, which will be publicized on Thursday in Thessaloniki, suggests that it will take at least 20 years in order to create one million jobs that will bring the unemployment rate bellow 10%.

The Labor Institute study has revealed that “the financial pressure on the family has limited the negotiating power from a large sect of unemployed”, with 60% admitting they are unable to make any demands and 55% willing to work for whatever salary. 53.7% of men and 38% of women would be prepared to move away for work.

Another chilling statistic reveal is that 37% of unemployed rely of family to survive. This rate has dropped from 56.1% rate when unemployment rates were low and not as much of a strain on finances. Only about 12% of unemployed collect a benefit from State-sponsored unemployment agency OAED, with 24.6% relying on savings and 9.3% turning to friends for help.

Even though 84.5% of unemployed live with family, indicating the important role of family ties, about 45.5% claim they receive little to no psychological support, compared to the 10% rate when unemployment was low.

One of the fears expressed in the study is that the midterm investments, which do not require any large numbers of employees, will create an “unemployment growth”. The Labor Institute estimates that the rate of long-term unemployed is about 60%.

The report finally shows how the buying power of employees was reduced by 37.2% between 2010 and 2013. Due to the crippling unemployment that rate is expected to drop to 50% in 2014.

“Prophets of pessimism”

The Ministry of Labor responded that the Labor Institute’s “prophets of pessimism” are trying to “impress” by using the worst scenarios and models to predict a collapse. The Ministry claims that the latest data indicates a reduction in unemployment, while the recruitment/dismissal balance being positive during in the eight-month period from the start of the year.