Unemployment in Greece will reach 28%

A study by the Ernst & Young financial auditors company predicts a new record low for unemployment in the Eurozone, with the number of the unemployed exceeding the 20-million mark in the second half of 2013, from 18.7 million in October.

 

Ernst & Young bases its assessment mainly in the decline of competitiveness. According to the study, the overall economic performance of the Eurozone countries will decrease by 0.2% accompanying the 0.4% drop recorded in 2012. As the authors of the study write, "the following year too will be very difficult for the Eurozone".

 

 

They believe that the situation in Greece and Spain will be particularly difficult. Regarding the former, they predict a further reduction of the GDP by up to 4.3%, with growth returning in 2015. The already very high unemployment rate in Greece is expected to make a new upward leap, reaching 28% in 2013.

 

The situation concerning unemployment is not much better in Spain, where Ernst & Young analysts predict that the relevant index will reach 27%. Despite the reduction in the number of the unemployed by the end of 2012, the country's politicians justify this reduction by referring to the fact that the Christmas season traditionally employs more workers due to a transient increase in labor market needs.

 

In contrast, the situation in Germany is good despite the increase in unemployment by 88,000 people in the last month of 2012. In December, the number of the unemployed stood at 2,840,000 and the relevant rate at 6.7%, as indicated by the Federal Labour Agency. The increase in unemployment during December is not uncommon, however in 2012 this trend appears stronger. In the same month, the number of vacant positions stood at 421,000. Most are located in the fields of mechanical engineering, electrical engineering, energy, machine building and transport.