Continuity and discontinuity in Employment policy for young workers after the crisis: The Greek case by Anda Stamati, Scientific Consultant, Labour Institute of Greek General Confederation of Labour (INE/GSEE)
The economic crisis has significantly aggravated the situation of all the workers and young workers in particular in Greece s labour market, due to the increase in unemployment and also the increase of flexible forms of employment.
Unemployment Unemployment is probably the most serious problem that young people in Greece are facing, especially following the repercussions of the financial crisis in the country. The rate of unemployment among young people in Greece is one of the highest in Europe and much higher than the overall rate of unemployment in the country.
YOUTH EMPLOYMENT RATE, 1998-2012 5 000 000 4 500 000 4 000 000 3 500 000 3 000 000 2 500 000 2 000 000 1 500 000 1 000 000 500 000 Total Employment Employment 15-29 (%) 1998 19992000 20012002 20032004 2005 20062007 20082009 20102011 2012 25 20 15 10 5 0 Youth Employment rate (% Even before the economic crisis, there were difficulties in the integration of young people in the labor market.
Unemployment rate by age 2012 60 50 40 30 20 10 0 Total 15-24 25-29 30-44 45-64 65 + The highest youth unemployment rate (age 15-24) recorded was 53.9% of which female unemployment is at 62.1%
According to official statistical data four out of ten persons that lost their employment are young people up to 29 years of age. The crisis mainly affects young people up to 29 years of age, whose employment decreased by 333,733 persons (-39.2%), as six out of ten workers who lost their job are mostly young men.
40 Unemployment rate by education 2012 35 30 25 20 15 10 5 0 Total Received a postgraduate qualification Received a university degree Received a third-level technicalvocational institution degree Completed secondary Completed the level education third stage of 6-year secondary education Completed primary education Have not completed primary education Attended no school at all The rate of unemployment by level education attainment: The highest unemployment rate is among people with no school education (35.8%). Next are people with a secondary education degree and people with a Higher Vocational education degree (26%). The lowest unemployment rate is among people holding a PhD or postgraduate degree (12.9%) and tertiary education graduates.
Situation in labor market in the crisis There is a widespread feeling of insecurity among young people because of the flexible forms of employment which they are constrained to turn to particularly due to the deficient operation of control mechanisms, but also as regards the future of the social security and welfare system. However, flexible forms of employment such as part-time employment, uninsured labour, contracts for the rendering of services are issues that nowadays, following the severe economic crisis, concern the entirety of workers in Greece, regardless of age.
Situation in labor market in the crisis A report issued by the Labour Inspectorate (SEPE) on developments in employment contracts during the first four months of 2012 showed that 46% of new contracts in the private sector were for flexible forms of work such as part-time work and work rotation. The recruitment of new employees in the private sector, taking into account all categories of workers, decreased by 8% (14,802 fewer jobs) compared with the same period in 2011. Compared with the corresponding period in 2010, the recruitment of full-time workers decreased by 67,303, a drop of more than 44%.
Situation in labor market in the crisis Of the 156,805 newly recruited employees, 72,217 were hired under flexible employment contracts (54,964 for part-time work and 17,253 on a work rotation basis), and the remaining 84,588 were hired for full-time employment. The recruitment of new employees in the private sector, taking into account all categories of workers, decreased by 8% (14,802 fewer jobs) compared with the same period in 2011. Compared with the corresponding period in 2010, the recruitment of full-time workers decreased by 67,303, a drop of more than 44%.
Situation in labor market in the crisis More specifically, compared with the first four months of 2011, the conversion of full-time employment contracts to flexible forms of employment increased by: 47% (4,909 changes) switched to part-time employment; about 7% (513 changes) changed to work rotation with the agreement of the employee; 169% (3,328 changes) work rotation contracts imposed by the employer s unilateral decision.
Situation in labor market in the crisis The wave of emigration of young scientist creates prolonged recession. The high rate of unemployment and low wages/salaries are pointing the exit door to young people who are disappointed by their country. The main feeling among the young is anxiety and disappointment as regards the condition and outlook of the Greek economy and for the future which looks bleak. What awaits young people after graduation is unemployment, underemployment or part-time employment.
Situation in labor market in the crisis A recent survey among non-appointed teachers as to the utilization of their degree, showed that one in four was unemployed for more than eighteen months, half were employed in jobs completely irrelevant to their scientific studies (supermarket employees and cashers, stock keepers, shoe and clothes store employees, taxi drivers, waiters and other touristic jobs) and one in four was underemployed in jobs relevant to their studies (preparatory schools, private lessons).
Situation in labor market in the crisis A recent survey demonstrates the problem clearly. The disciplines with the highest precarious employment rate are foreign Languages, History, Archeology, Medicine, Dentistry, Literature, Philosophy, Mathematics, Physics, Chemistry, Physical Education/sports. To the contrary, disciplines with the lowest precarious employment rate are Home Economics, Dietetics, Nursing, Law, Veterinary Medicine, Pharmacy, administration and computer engineering sciences.
Government responses to help young workers At legislative level, enacted a special employment regime for minor and young workers. More specifically, the law provides for a reduction of the minimum wage paid to workers under 25 years of age to 84% of the minimum wage and a reduction of the minimum wage paid to minors of 15-18 years of age to 70% of the minimum wage.
Government responses to help young workers At the same time, the Manpower Employment Organization (OAED) announced a new scheme for the acquisition of work experience through the employment of 10,000 unemployed persons of 16 to 24 years of age entering the labour market. The said scheme is differentiated as follows vis-à-vis previous schemes for the acquisition of work experience: It is addressed only to private sector enterprises. It provides for a wage and insurance for beneficiaries. It has a specified duration (6-12 months). Only young people of 16-24 years of age are eligible for participation.
Government responses to help young workers OAED grants a subsidy corresponding to 100% of the employers and employees social security contributions for the pension sector, the sickness insurance sector and the occupational hazard sector of the Social Security Fund (IKA-ETAM), whereas employers pay to young people with whom they enter into an agreement for the acquisition of work experience a wage corresponding to 80% of the minimum monthly wage or day wage. The subsidy scheme lasts 12 months and provides strong incentives for an extension for a further twelvemonth period, following a conversion of the agreement for the acquisition of work experience to an employment agreement.
Attitudes of social partners towards young workers The Greek General Confederation of Labour (GSEE) has established a special Secretariat for young workers that deals with the situation experienced by young workers (including aspects such as part-time employment, uninsured labour and deregulation of the labour market), taking actions and initiatives to place emphasis on those issues.
Attitudes of social partners towards young workers The Secretariat of Young Workers of the Greek General Confederation of Labour is trying at a quick pace to fill the void of communication between young workers and trade unions and to re-establish the relations of trust, through an attractive operation plan and a scheme open to young workers, with a simple organizational structure;
Attitudes of social partners towards young workers The Secretariat of Young Workers also represents the GSEE before entities which it is a member of, such as the National Youth Council (ESYN) and the Youth of the European Trade Union Confederation (ETUC); takes initiatives in Greece and in Europe; co-operates with other youth organizations and networks so that there be an exchange of views and opinions, which helps in acquiring a better knowledge of modern working conditions and in finding effective solutions; co-operates with the other Secretariats of the Greek General Confederation of Labour on matters concerning young people;
Attitudes of social partners towards young workers is in constant contact with young students, immigrants, unemployed, etc.; promotes the participation of young people to the tradeunion training programs implemented by the GSEE. The key position of the GSEE is that employment programs do not create new jobs but help in adjusting imbalances in the job market. Therefore, the unions point out that public and private investments are necessary for the creation of new jobs.
Conclusions The dynamic increase of unemployment among the young is stronger than the dynamic ability of policies aiming to tackle unemployment. The extended recession is expected to be accompanied by an increase in youth unemployment. This assessment signals an increased number of young Greek higher education graduates who will emigrate to other countries abroad.
Conclusions In that context, the social partners and the State must take initiatives with a view to reducing unemployment among young people and to creating quality job positions for that group as well as their continuous training and improvement of their skills during their employment.
1 000 000 900 000 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 EMPLOYMENT 15-29, 1998-2012 Employment Employment rate 1998 19992000 20012002 20032004 200520062007 20082009 20102011 2012 50 45 40 35 30 25 20 15 10 5 0 rate (%)
450 000 400 000 350 000 300 000 250 000 200 000 150 000 100 000 50 000 UNEMPLOYMENT 15-29, 1998-2012 Uneployment Uneployment rate 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 45 40 35 30 25 20 15 10 5 0 (%)
EMPLOYMENT and UNEMPLOYMENT RATES 15-29, 1998-2012 50 45 40 35 30 25 20 15 10 5 0 Employment rate Uneployment rate 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
EMPLOYMENT 15-29 by Gender 1998-2012 MEN FEMALES % FEMALES 700 000 600 000 500 000 400 000 300 000 200 000 100 000 43 42 41 40 39 38 37 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 36
UNEMPLOYMENT 15-29 by Gender 1998-2012 MEN FEMALES % FEMALES 250 000 200 000 150 000 100 000 50 000 70 60 50 40 30 20 10 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 0