By Christos T. Panagopoulos
The Institute of Labor (INE) of Greece’s main labor union, GSEE, issued a grim image about employment in its annual report, which predicts that it will need at least 20 year for the country’s unemployment to fall under 10%, by the creation of one million new jobs.
According to the INE, each investment which will be made in Greece in medium-term will create the so-called “unemployed development”, as it either will refer to activities which do not require a high number of employees or to high technology enterprises.
As also mentioned in the report, from 2009 to today, employees have lost about one quarter of their income’s purchasing power, and if due to high unemployment wage pressures continue, then in 2014 the estimates show that they will lose 50% of their purchasing power.
According to the same source, the self-employed and employees’ earnings decreased the last three years by 41 billion euros. Furthermore, falling domestic demand, is characterized as dramatic, as it is estimated to have returned to the levels of 1999. During 2011-2013 Greece’s fixed capital stock has fallen for first time since the end of civil war.