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1.2 million unemployed in Greece in June

06 September 2012 / 14:09:10  GRReporter
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One in four Greeks of working age is unemployed, according to data of the Office for National Statistics for June this year. The deepening of the crisis and the deterioration of the economic environment are obvious, given that the unemployment rate in June 2011 was 17.2 per cent, and a year later it reached 24.4%. The number of people outside the labour market has exceeded 1.2 million, as for a year more than 358,000 citizens have remained without work. At the same time, the number of people who are not eligible for work (children and elderly pensioners) is about 3.2 million.

The highest unemployment rate is among young people aged 24 - 55%. In the age group of 25 to 34 years, 32.1% are unemployed. As for women, unemployment escalated in June 2012 and reached 28%, up from 21% in the same period last year. Analysts note as extremely worrying the fact that in early summer, when jobs traditionally open, a spike in unemployment was noticed. The worst is the situation in the provinces of Epirus-Western Macedonia (26%), Macedonia-Thrace (25.4%), Thessaly (24.8%) and in the region of Attica (23%) where two thirds of the labour force is concentrated, according to Naftemporiki.

At the same time, Greek companies in the production and manufacturing industry have been waiting for five months to receive payment from their customers and they will need another eight months to pay their suppliers back. The results are from the study by Hellstat agency, carried out among 52,000 companies, in the period 2002-2011. The indicator for total liquidity of companies, which is determined by the short-term funds towards short-term debt, increased in 2011 and reached 1.55 percentage points. In 2010 its value was 1.47, and in 2008 - 1.43 percentage points, the study found. Cash balances of the companies involved in the analysis for the same period are decreasing gradually. Their value versus the total assets in 2002 was 9.3%, in 2008 it reached 7.2 per cent, and in 2011 it was 6.3%. A decrease was noted in sales, which fell by an average of 11%. Demand has decreased by about 2.5 billion euro and orders by suppliers - by 2.8 billion euro.

Eight out of ten participants in the analysis of the market say that they ended 2011 at a loss. By comparison, in 2008 at the beginning of the crisis, 40% of respondents said that they were working at a loss. According to Executive Director of Hellstat Panos Mihalopoulos not a single euro has gone for investments from the earnings of the few companies which did not end last year in the red. He added that for four years the companies in Greece have lost an average of 25% of their turnover, and profits (where they exist) are 50% lower.

Tags: Economics news unemployment crisis Greece
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