Unemployment in Greece, Emilio

 


Emilio


Dr. Quillin


Ms. Middleton


ECH 12 ADV


11/6/22


Unemployment in Greece


Basically, Greece has been experiencing some high rates of unemployment in the last years, which obviously it is considered a problem for the country and for the wealth being of its economy. Some of the records that have been seen in the past years were for example around the year of 2013-14, where Greece was running - 27.5% which this rate was even higher among the young population of the country. 

The unemployment that was and is still experiencing Greece is due to a prolonged resecion which therefore had led into a substantial fall in the output and decline in normal economic activity in general. Another reason that unemployment had increased in the past years, is for example the lack of competitiveness in the Eurozone, the fact of having higher labor costs and rising production costs caused the exports of Greece to be considered lower or uncompetitive, but regarding the Euro, there wasn’t a devaluation to restore competitiveness. Now, knowing the previous facts, we can say that the lack of competitiveness is a big contributor to the unemployment in Greece, which therefore led to a current account deficit of close to 15% at the start of the crisis in the year 2013 forward. 

Some of the things that Greece could do is for example, persuade the increase of aggregate demand, and this can be done with Expansionary Fiscal Policies, Expansionary Monetary Policies, and devaluation of exchange rates. By doing this, it is really likely that the economy of Greece will get a boost to get back into the worldwide economy game. 






In the graph below, we can find the downs and ups of the unemployment rate from the past years till the year of 2021. 





Sources: 


  1. Policies to reduce unemployment in Greece - Economics Help


  1. Greece | Data (worldbank.org)

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