Greece unemployment highest in EU

The latest unemployment rate for Greece has risen to 26.8%, the highest figure recorded in the European Union (EU).

The official Greek data for October sees Greece overtake Spain as the country with the highest unemployment rate in Europe.

The Greek economy remains mired in recession and the government is in the process of imposing significant austerity measures.

Athens is cutting spending to meet the terms of its financial bailouts.

So far, the European Central Bank, International Monetary Fund, and the European Commission have pledged a total of 240bn euros ($315bn; £196bn) in rescue loans, of which Greece has received more than two thirds.

The Greek government required the bailouts because it was struggling to meet the interest payments on its existing debts.

Under the terms of the rescue funds, Greece is having to agree to substantial spending cuts, such as redundancies and pay freezes in the public sector, and reduced pensions. This is having a major knock-on impact on the wider Greek economy.

While Greece’s unemployment rate in October was 26.8%, the most recent official figure for Spain – for the month of November – was 26.6%.

Spain is also in recession, with its government having to cut spending to reduce its debts.

The BBC’s Athens correspondent, Mark Lowen, said: “Greeks blame austerity for the rise, with the number of jobless more than doubling since the country was first bailed out in 2010.

“And with more spending cuts this year, many predict the rate will soon hit 30%.”

BBC World News

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell
Dean Popplewell

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