Unemployment Rate In Greek

Unemployment refers to the condition of someone of working age (16-64) who is willing and able to work, actively seeking employment, but unable to find a job.

The rate of unemployment in Greece for the people of ages 15 to 24, who is considered as the younger group of workers, was 48.3%. Compared to the people of ages 25 to 34 was 32.1%. The data shows that young people are more affected than older people, however, Greece’s overall unemployment rate is still high for all the group of ages. It has been happening since 2009 when the Greek government-debt crisis started because of the change of the leaders and structural weaknesses. According to the article, “Greece’s unemployment rates have surged in the past seven years amid cuts in public

The country wants low rate of unemployment because high unemployment brings some costs in an economy. Firstly, those who are unemployed will not receive any wages, means they face money crisis. Secondly, it can lead to government costs; increase in unemployment means that they need to give unemployed people for some social welfare. On the other hand, tax revenue will decrease because there are less tax payers. The unemployment also causes to increase crime rate, homeless people and poverty. Cyclical employment has effects upon its economy in Greece for both short and long term. In the short run, the firms will sell lesser goods at a lower price, and that makes a negative impact on them. In the long run, since unemployment people will suffer because they will not receive any wages. If they do not receive any money, it means that they will spend less money on their consumption, which will decrease

First of all, the country is in a huge debt and does not have any revenue to use for government spending. They need to ask European Union (EU) to borrow money, but they lost their confidence among the countries, so no one is willing to lend. Secondly, those policies that to address unemployment problem are only effective in the short term to maintain inflation and increase employment rate. However, it will result in a recession if these policies are continuously used. Thus, in the long term, the government should attempt more on interventionist supply side policies such as investment in human capital, new technology, infrastructure and industrial policies. These policies affect to improve the factors of production and increase productivity, leads a rightward shift in the AS curve so to make both lower unemployment and inflation for the long run. That is why Greece is facing this problem right now and there is persistent high employment for a long