By IPS Correspondents
ATHENS, Feb 9 2007 (IPS)

Unemployment figures have fallen in Greece but unemployment has not, union leaders and researchers say.

The latest official figures show unemployment at a nine-year low of 8.3 per cent – a fall of 1.4 percent from 2005. The figures compiled by the National Statistics Agency (ESYE) indicate a considerable drop from the 12.3 percent peak recorded in 1999. Greece has a population of 10.7 million.

But the General Workers Union (GSEE), the principal union in Greece, argues that the methodology in working out the figures is a principal factor in the drop.

“In the figure for 2006 employment has increased by 70,880 but only 20,700 of these are actually fully employed,” Petros Linardos-Rylmond, from the GSEE Research Institute told IPS. “This leaves many who are only partially employed, but these are included in the figures, which we feel is not truly representative of the situation.

“We do not have the research to tell us how many hours exactly the ones who we class as partially employed work, but we believe the unemployment rate is closer to 11.4 percent rather then at just over 8 percent.”

The union also says young people are victims of the employment policy, with not enough jobs being created for them, in particular positions that require a high standard of education and vocational qualifications.

The independent Greek National Centre for Social Research backs some of the GSEE findings, especially on the issue of education level, low pay and the considerable number of the economically inactive.

“Our data shows that at the top of the unemployment scale are the ones with post-secondary vocational qualifications, that make up just over 11 percent of the total unemployed,” Yannis Sakellis, professor of social policy at the research centre told IPS.

“We also found from the statistics of an income and living conditions survey that those who have not attended school are at the bottom of the unemployment scale. GSEE are right to argue that there are currently far too many low paid jobs in the labour market.”

The research centre regards the problem of the non-active as a crucial issue for the government to tackle. It is estimated that this lot currently totals 4.2 million over the age of 15. Many of these are expected to enter the labour market soon, and this would create further pressure on the unemployment figures.

“The challenge for political parties and policy makers is to provide employment accession rather than to focus on the reduction of unemployment as such,” Prof. Sakellis told IPS.

Initiatives from the European Union such as the European Social Fund are in place providing schemes to alleviate unemployment among those aged 15-24.

The support programmes consist of training schemes in several fields including tourism, health and new technologies, with projects promoting an entrepreneurial culture and the creation of new enterprises.

Greece has experienced strong economic growth since 1999 but the employment rate is 83 percent below the EU average.

The National Reform Programme of 2005-08 outlined the changes necessary in the labour market, which included reform of education and training. But last year’s implementation report stated that employment reforms have been limited.

With the next election likely for early spring 2008, employment issues are likely to remain in the public eye. (END/IPS/EU/LB/PT/SS/07)

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