Greece's Jobless Soar By 42% As Unemployment Rises To Record, Industrial Collapse Accelerates

Tyler Durden's picture

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.

From Reuters:

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.

From WSJ:

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.

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ArkansasAngie's picture

OK ... I give up.  Can we call it a depression already?

Sudden Debt's picture

After all the elections in the EU and US


And than it will be the new guys who did it. BLAME IT ON THE MAILBOY SYNDROME

EscapeKey's picture

Are you kidding me? These numbers are clearly better than expected.

CPL's picture

It's priced in.


Anyone else have useless financial phrase to dogmatically inject into thread?

PR Guy's picture

Yes: "What we need is growth"

You can attribute that to just about any elected or non-elected Euro politician.... who will mouth the words  but thinks someone else is responsible for actually making it happen.

LMAOLORI's picture

No but I have some common sense to inject


How To Get Revolution In Europe

It's pretty simple, really.

Put in place a "treaty" that requires:

  • That all governments involved fund it on demand within 7 days.
  • That the amount of said funding is determined by the entity, with no right of review or veto, and can be increased at any time.
  • That there are no rights of review, not even to see the work product of the entity.
  • That the entity can sue, foreclose, prosecute, etc -- but nobody can sue, prosecute, foreclose or investigate the entity.
  • That the people working for that entity enjoy absolute immunity -- even against unlawful acts.

No, this isn't a dream.  It's the ESM.

And should any nation ratify this entity it is identical in form and function to selling the citizens into literal slavery, at which point said government's legitimacy has been destroyed by its own hand and thus the citizens are well within their rights to refuse consent to further governance by that entity


CPL's picture

Well perhaps the newly poor can stay at the brand new concentration camp to assist in soap and lamp shade making.

bdc63's picture

For the love of God, would somebody please make this stop already

CPL's picture

This is just the appetizer, the main course will be served soon.

NorthPole's picture

out of the 3.87 mln employed, more than 1 mln 'works' in various gubber-mental agencies. Maybe 2.5 mln has any meaningful productive job to do.

Sudden Debt's picture



This is even worsen than watching that live feed of the Pitch Drop experiment....


Zgangsta's picture

Thanks for the link.  I know what I'm doing now for the rest of the decade!

NetDamage's picture

You make it sound like a problem???

Sudden Debt's picture

we don't use the word "problem" here. Event. Call it a event.


EscapeKey's picture

Or even better - call it a non-event, from the perspective of triggering credit default swaps...

Sudden Debt's picture

and if all hell brakes loose, we can call it a "situation" :)

EscapeKey's picture

... and then we print lots of money. That solves all problems.

Who cares about minor issues and technicalities like solvency and unsustainable deficits.

WonderDawg's picture

Generally speaking, you don't need the /sarc around here. We get it.

RECISION's picture

Except for the odd random newbie - or the congenitally deficient...

Zero Debt's picture

And when the whole continent starts to burn with millions jobless and rioting, we build a "firewall" right in the middle (around the castle of the kings and queens) and hail it as "the only way to save the economy".

LaLiLuLeLo's picture

Can't wait till these fat old cranks croke and we can hit the restart button. This is getting so rotten even a hyena won't eat it.

speaking of hyenas...

Zgangsta's picture

And Greek stocks are soaring, probably because they expected much worse.  Behold the power of lowered expectations!

Mentaliusanything's picture


IMF and EU winning friends and starving hopes since inception

jover's picture

I am all stacked up and now I am longing for unemployment.

I have been working hard to get some savings, an unemployment period would relax me.

Others feeling the same way?

ArkansasAngie's picture

I made the business decision on Monday that my best move currently was to do nothing. However ... I will implement operation local vulture fund when I see the dagger sticking in the dad gum dirt. No knife catching for me.

Anglo Hondo's picture

My travel agent just canceled my Greek vacation for this summer.  The hotel (and the alternate) both ceased trading in the past five days.   Can you say "disaster"?


Mitzibitzi's picture

Coming to a country near you all too soon, I rather suspect.

RECISION's picture

Around July is Riot season...

as long as you have enough unemployed youth hanging around of course...


ArkansasAngie's picture

Critical mass?

Surely amongst the snail darter government funded studies they can say at what unemployment rate do youths riot.

Sudden Debt's picture

further confirmed by the collapse in Industrial production

Did that 1 olive jar factory out of 2 close down?

MrNude's picture

We've all effectively known Greece was done and dusted last year, even the IMF and ECB must of known behind closed doors. 

I think to myself, it has gone beyond the point of money, it has gone beyond the point of saving any socialist dreams of a united utopia, so to me it boils down to asking which sado machist behind the scenes has benefitted the most and furiously masterbated in glee over the prolonged death rattle of Greece carrying on for effectively a year longer than it really should of in futility? 

kanenas's picture

Stop spreading this Greek myth.

There was never a '110B€' bail out for Greece.

There was a refinancing with a small haircut vs the real market value of Greek bonds. Of course, everything was priced in. Right?

If Greece received a 110B€ bail out to do as it pleases, there would be at least two more Olympiads hosted in the country before going bust, again. By that time their unemployment rate would be 3%, tourism / economy would grow instead of shrink, and Spain and Italy would have defaulted anyhow.

insanelysane's picture

It's all going to work out.  Welcome to South Germany and Spain will become Far West Germancy.

PulpCutter's picture

Henry Ford (1922):  Business is always either feasting or fasting and is always either "good" or "bad." Although there is never a time when everyone has too much of this world's goods—when everyone is too comfortable or too happy—there come periods when we have the astounding spectacle of a world hungry for goods and an industrial machine hungry for work and the two—the demand and the means of satisfying it—held apart by a money barrier. 

Plenty of Greeks who want to work, and plenty who want to buy things. Clearly, the strategies pushed by Merkozy and the ECB are not working anywhere in the EU (duh), unless you're a big European bank with a very short-term focus.  The Greek people just took a BIG step towards fixing the problem - as did the French.  The next step for the Greeks is to leave the Euro, take whatever short-term pain that entails, and move on.  Do an "Iceland".

Bank, and the "academic" field of economics, are giving us answers that are completely illogical - unless you look at those answers from a viewpoint of cronyism, in which case the logic is clear.

DavidJ's picture

The human misery in Greece is very sad.  Lots of people are suffering.

Peter Pan's picture

The unemployment figures are far worse than what the statistics reveal due to the fact that countless numbers of people are showing up to work day after day but have not been paid for anything between 1 to 6 months. The lack of any alternative employment has them going to work in the hope that their employer will eventually pay them.

navy62802's picture

Apparently this is bullish news for the Athens stock exchange. Up more than 4.5% following the release of this information.

machinegear's picture

It seems bad went... badder?

smiler03's picture

Well it appears that this Tyler has stopped calling the election results a disaster or inferring that Greece is it's own worse enemy.

Perhaps the Tyler conglomerate might now be considering that full blown tits up is really what's best for Greece in the long term instead of the Troika financed "bail out" of non-Greek European banks & Sovereigns.