Greek Labor Unions Expect Job Recovery in 20 Years

Greece’s largest labor union warned Thursday that it expects unemployment to remain higher than pre-crisis levels for another 20 years, and demanded that international rescue creditors allow the government to reverse minimum wage cuts imposed last year.

The country is in a sixth year of recession, exacerbated by repeated spending cuts demanded by bailout lenders. It already has the highest unemployment rate among the 17 European countries that use the euro currency: It stood at 27.6 percent of the workforce, or 1.38 million people, in May.

A labor research unit of the umbrella union GSEE forecast in a 400-page report issued Thursday that joblessness will reach 29-30 percent at the end of 2013, and a stunning 31.5 percent a year later.

Current unemployment levels are the worst since 1961, GSEE said.

Unions are planning large weekend protests in Greece’s second largest city, Thessaloniki, where conservative Prime Minister Antonis Samaras is due to give an annual speech on the state of the nation’s economy.

via Mainichi

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza