A 12-year record is the reduction in unemployment announced last week by ELSTAT and mainly concerns women and young people.
According to the Ministry of Labor, it has decreased by 4.4 percentage points from 17.2% in July 2019 to 12.8% in December 2021.
Thus, it is at the lowest point since July 2010 (12.9%), while in absolute numbers the number of unemployed (596.1 thousand) is the lowest since March 2010 (564.0 thousand).
At the same time, the number of employees exceeded in June 2021 the psychological barrier of 4 million for the first time since August 2011.
As the ministry explains, this performance is a result of the government’s overall policy, which encouraged job creation (reduction of taxes and insurance contributions, investment facilitation), created a network of protection against the effects of the coronavirus and encouraged the recruitment of unemployed through the programs of OAED, which are intensified this year.
According to the Ministry of Labor:
Unemployment has fallen by 4.4 percentage points since ND took over the country, from 17.2% in July 2019 to 12.8% in December 2021. Thus it is at its lowest point since July 2010 (12.9%), while in absolute numbers the number of unemployed (596.1 thousand) is the lowest since March 2010 (564.0 thousand). At the same time, the number of employees exceeded in June 2021 the psychological barrier of 4 million for the first time since August 2011.
2. Reducing unemployment for young women
The reduction in unemployment (in percentage points) is greater among women and young people. These are two categories of our fellow citizens who recorded extremely high unemployment rates during the crisis. The faster de-escalation of unemployment among women and young people is very important for both economic growth and social cohesion: All relevant research shows that the key determinant of reducing poverty and inequality is to increase the employment of certain groups of the population. Greece is making significant progress in this direction. New income is generated from work, which is mainly directed at people who did not have income before, because they did not have a job. The development that Greece achieves is becoming more and more inclusive.
3. Increase employment + more economically active
The decrease in unemployment coincides with both the increase in the number of employed and the decrease in the number of the economically inactive. This is the perfect combination.
In 2021, for the first time in recent years, we observe a significant reduction in the economically inactive, exceeding 100,000 people. That is, in 2021 more than 100,000 of our fellow citizens entered the market, looking for work. However, the unemployment rate fell significantly, as employment almost doubled, exceeding the 4 million mark. That is, in 2021, Greece achieved employment growth in an environment of increased participation in the labor market. This is exactly what is required.
The increase in employment by almost 200,000 jobs is in itself a very positive development. However, the reduction of the economically inactive is also a very positive development. This shows that the government’s incentives in favor of labor (reduction of insurance contributions and suspension of solidarity contributions) are effective, they give a significant impetus to people who were out of the labor market, to look for employment. It also shows that the new labor law, with provisions that promote a better balance between personal / family and professional life, allows people to work that they did not previously have.
4. Reform policy pays off
The success is due to the well-designed reform agenda that the government has been following since the beginning of its term. An agenda that includes reducing non-wage costs and corporate taxation to make them more competitive. But also the improvement of the business environment, the promotion of privatizations and the acceleration of the digital transformation of the economy.
Indicatively from the reduction of social security contributions 2020-2021 by 3.9 percentage points (2.3ppts per employer and 1.6ppts per employee) the annual non-wage cost of a company for an employee receiving a gross salary of 1,000 euros is reduced by 318 euros . At the same time, the employee has an increase in his income by 228 euros (which reaches 355 euros if the benefits of the tax reduction are taken into account).
In parallel with the reforms, immediate measures to support employment were implemented. The total cost of labor market support measures from the pandemic exceeds 10.5 billion, as in 2020 4.1 billion were allocated, in 2021 5.3 billion, while for 2022 it is expected to exceed 1.1 billion . euro. These measures resulted in Greece having the best performance in the EU, in terms of curbing unemployment during the pandemic period.
In addition, through OAED programs, more than 50,000 new jobs were created in 1.5 years, while for the current year another 86,000 jobs are expected to be created (as a measure of comparison in the four years SYRIZA only 40,000 were created).
It is worth noting that 57.7% of these new hires were women while 38.3% were people up to 29 years old – 2 population groups that face a more severe unemployment problem and for which special care is required.
5. The employment strategy in 2022
Out of the 16 programs of 2021, 7 programs remain open for applications, which will contribute approximately 24,000 jobs in 2022.
Also in 2022, with resources from the Recovery and Resilience Fund and the NSRF, OAED will implement 11 new employment experience and entrepreneurship programs (4 in lignite areas of Western Macedonia and the Peloponnese in the context of the green transition), amounting to 587 million euros. . They concern 62,000 jobs.
That is, a total of 86,000 new jobs will be created in 2022 through OAED.
In total, in the four years 2016-2019, 10,627 jobs were created per year, while in the SW we have an average of 31,661 jobs per year – that is, three times the number.
At the same time, the program of 150,000 new positions has been expanded, with which the total of the employee and employer insurance contributions is subsidized from the state budget, for a period of six months.
While from the 1st of January the “First Seal” is implemented, which is addressed to young people aged 18-29 who do not have previous service. In addition, more than 1 billion euros will be spent through the Recovery Fund for training programs in digital and “green” skills to 500,000 beneficiaries so that they can meet the new demands of the labor market. By the end of 2022, more than 150,000 people will have been trained.
Follow Skai.gr on Google News
and be the first to know all the news
