Greece's Jobless Soar By 42% As Unemployment Rises To Record, Industrial Collapse Accelerates
As noted earlier this week, while the theater of Greek elections serves as a convenient distraction from the epic depression the country of 10 million is undergoing, the reality is that very soon it won't matter at all who is left to govern this ruined country. Because if previously we demonstrated the collapse in two primary drivers of government tax revenue, namely tourism and commerce, today we show the logical follow through to economic flatlining: jobs and industries. Sadly, both are getting trounced. As Reuters reports, "Greece's jobless rate hit a new record in February, underscoring the pain austerity policies required by the EU and IMF have inflicted on the debt-laden country which is struggling to form a government. More than one in five Greeks and one in two youths are out of a job, statistics service ELSTAT data showed on Thursday. The unemployment rate hit 21.7 percent from a revised 21.3 percent in January. In the 15-24 age group, joblessness stood at a record 54 percent." It also appears that Greece has been getting ideas from the BLS: an 11 million population, and a pool of employed at a record low 3.87 million! "Nearly 1.1 million people were without a job, 42 percent more than in the same month last year, the data showed. The number of those in work declined by 8 percent over the same period to a record low 3.87 million." In other words, less than 4 million people are working to pay off the country's bailout package and debt which at last check was about 200% of GDP? At least of all indicators, the GDP is collapsing the fastest. Very soon Greece will be treated to a merciful #Div/0 when attempting to calculate its debt to GDP ratio. We can't wait to see the IMF's face then.
Budget cuts imposed since 2010 under the terms of the country's international bailout to save Greece from a chaotic default have caused a wave of corporate closures and bankruptcies.
This has fuelled anger with established, pro-bailout political parties, which suffered a stinging defeat in May 6 elections that created a hung parliament in which half the seats went to anti-bailout groups.
Joblessness was the highest in the country's biggest urban centres, particularly Athens, where the anti-bailout Left Coalition party (SYRIZA) fared particularly well in the elections, becoming the biggest party.
Greece's economy is estimated to shrink by about 20 percent in 2008-2012, marking the country's deepest and longest post-war recession. More than 500,000 jobs, about in 10, have been destroyed in the process.
Recession? Make that the country's biggest depression ever, further confirmed by the collapse in Industrial production. Just observe the year over year implosion in this indicator: January-5%, February -8.3%, and now March -8.5%. The trend is not your friend.
Greece's industrial production fell 8.5% on the year in March, after declining 8.3% on the year in February, the Hellenic Statistical Authority, also known as Elstat, said Thursday.
Electricity production declined 8.9% compared with the year earlier, while manufacturing production fell 8.8%. Mining and quarrying output declined 7.9%, while water supply production was 0.5% lower.
Austerity measures introduced as part of Greece's initial EUR110 billion bailout plan have taken a heavy toll on economic activity, weighing on consumption and investments.
Earlier this year, Greece clinched a EUR130 billion second bailout needed to help stave off bankruptcy after promising European partners and the International Monetary Fund a tough reforms agenda and severe budget cutbacks.
Little to add here.