The pace at which the unemployment rate is decreasing in Greece is declining, according to a Eurobank analysis.
The periodical review highlights the fact that women, young persons, and disabled persons are impacted at a higher rate than the corresponding groups in the rest of the EU countries.
According to the bank’s economists, the percentage of youth (26.2%) and women (51,2%) participating in the workforce is lower compared to the respective groups in the EU27.
A similar picture emerges with regard to long-term unemployment. Greece has recorded a higher rate of long-term unemployment than the EU-27 average for almost the entire period under review, with the average long-term unemployment rate standing as the second highest among EU member states, at 57.1% for individuals aged 15–74.
Accordingly, further reductions in unemployment and a transition toward a more efficient labor market — in other words, the achievement of full employment — require broader participation in the labor force and improved matching between workers’ skills and those demanded by the market, the analysis notes.
According to Eurobank, overall slack in the Greek labor market has declined significantly, bringing it closer to the point described by Michaillat and Saez (2022), where the unemployment rate reaches a level that minimizes the combined number of unemployed individuals and unfilled job vacancies. At this stage, the labor market is considered to be operating efficiently.
Source: tovima.com
