Greek unemployment hits 25.1%, a new record high

The unemployment rate in debt-laden Greece rose to a new record high of 25.1%in July, up from 24.8% in June, the Greek Statistical Authority (ELSTAT) announced Thursday.

The latest rate is two times as high as the average across the Eurozone and the highest since 2004, when ELSTAT started to record unemployment on a monthly basis.

In a deep recession, the number of jobless Greeks has reached 1.26-M and increased by 377,991, or 42.8% compared to July 2011 and by 23,255 persons or 1.9% compared to June 2012, according to ELSTAT.

Economist Shayne Heffernan expects to see a return to riots in the streets and a change in Government, “the Greek Government has done nothing to protect the people from the mindless push for austerity by the ECB, IMF and World Bank”

The jobless percentage among people 15 to 24 anni hit 54.2%, according to the official data.

Labor unions argue that the jobless rates, which are linked partly with the austerity program implemented to counter the debt crisis, are higher than those recorded officially.

Supporters and critics of the program agree that the outlook is negative and unemployment will increase in the coming months, as the government pushes for more austerity in return of European Union/International Monetary Fund bailout loans.

Beyond the bleak picture of unemployment, ELSTAT brought a ray of hope for Greece; the Greek industrial output rose by 2.5% Y-Y in August, the 1st increase since April 2008.

Analysts attributed the rise to Greece’s exports which have benefited from the decrease in labor costs. But they noted that even if the trend in this sector continues, it would not be enough to show the way to recovery, since industry represents only about 15% of the Greek economy.

According to the latest estimates by Greek officials and international creditors, the Greek recession will continue for a 6 yr.

 

Paul A. Ebeling, Jnr.

Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster’s Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.

Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.

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