Effects of economic crisis on labour market
An analysis by the Labour Institute of the Greek General Confederation of Labour focuses on the impact of the economic crisis on the Greek labour market. It appears that the economic crisis has mostly affected men in regular paid employment in the private sector, particularly in the construction and manufacturing sectors. The crisis has also led to a significant increase in part-time employment, as well as a marginal increase in self-employment.
In its monthly journal Enimerossi, the Labour Institute of the Greek General Confederation of Labour (Ινστιτούτο Εργασίας ΓΣΕΕ, INE/GSEE) presented in two parts a study on the impact of the economic crisis on employment. The study analyses and elaborates data from the Labour Force Survey, conducted by the National Statistical Service of Greece (Εθνική Στατιστική Υπηρεσία Ελλάδας, ESYE). It refers, in particular, to the second quarters of 2008 and 2009. This article outlines the main conclusions of the study.
Crisis mainly affects paid employment
The study finds that the main burden of the crisis was felt by paid employees and people working as assistants in family enterprises. More specifically, between 2008 and 2009, paid employment has decreased for the first time since 1991: that is, by 1.8% or 52,281 people (Table 1). In the same period, employment of assistants in family businesses has dropped by 1.9% or 5,200 people. At the same time, the number of self-employed people with staff increased by 1% or 3,688 people, while the number of self-employed people with no staff rose marginally by 0.4% or 3,580 people.
The fall in paid employment is attributed to a 3.4% decrease (59,786 people) in the number of male employees, whereas the number of female employees increased slightly by 0.6% (7,503 people). The higher number of self-employed persons with staff is attributed to a 1.4% rise (4,391 men) in the number of men in this category. On the other hand, the higher number of self-employed people without staff is linked to a 1.2% increase (3,697 women) in the number of women in this category.
| 2nd quarter of 2008 | 2nd quarter of 2009 | Change 2008–2009 | % change | |
|---|---|---|---|---|
| All employed | 4,582,127 | 4,531,915 | -50,212 | -1.1 |
| Self-employed people with staff | 381,226 | 384,914 | 3,688 | 1.0 |
| Men | 304,120 | 308,511 | 4,391 | 1.4 |
| Women | 77,104 | 76,403 | -701 | -0.9 |
| Self-employed people without staff | 957,632 | 961,212 | 3,580 | 0.4 |
| Men | 654,073 | 653,955 | -118 | 0.0 |
| Women | 303,560 | 307,257 | 3,697 | 1.2 |
| Assistants in family enterprise | 268,873 | 263,673 | -5,200 | -1.9 |
| Men | 94,584 | 91,846 | -2,738 | -2.9 |
| Women | 174,288 | 171,828 | -2,460 | -1.4 |
| Employees | 2,974,396 | 2,922,115 | -52,281 | -1.8 |
| Men | 1,735,827 | 1,676,014 | -59,786 | -3.4 |
| Women | 1,238,571 | 1,246,074 | 7,503 | 0.6 |
Source: ESYE, Labour Force Survey 2008, second trimester of 2009 – processed by Kritikidis, 2009
Substantial increase in part-time employment
The economic crisis has mainly affected permanent and full-time paid employment – as the following findings show – while fixed-term and part-time employment are increasing, the latter to a highly significant extent.
- Permanent employment has decreased for the first time since 1988, by 2.5% (64,684 people) between 2008 and 2009 (Table 2). Conversely, temporary employment has increased by 3.6% (12,400 people) during the same period. The decrease in permanent employment is due to a 4.3% decline (66,847 people) in permanent employment among men.
- In parallel, full-time employment has fallen by 2.8% (79,716 people). This decrease is mainly due to a 4.1% decline (69,096 people) in full-time male employees.
- In contrast, part-time employment displayed a highly significant increase of 20.4% (27,435 people). More specifically, part-time employment of male paid employees rose by 24.7% (9,311 people), while it increased by 18.7% (18,124 people) among female employees. Despite the greater rise in part-time employment among men, women continue to account for the largest proportion of part-time employment, constituting almost three quarters of all part-time employees.
| 2nd quarter of 2008 | 2nd quarter of 2009 | Change 2008–2009 | % change | |
|---|---|---|---|---|
| All employed | 2,974,396 | 2,922,115 | -52,281 | -1.8 |
| Men | 1,735,827 | 1,676,014 | -59,786 | -3.4 |
| Women | 1,238,571 | 1,246,074 | 7,503 | 0.6 |
| Permanent employment | 2,631,913 | 2,567,229 | -64,684 | -2.5 |
| Men | 1,563,373 | 1,496,526 | -66,847 | -4.3 |
| Women | 1,068,540 | 1,070,703 | 2,163 | 0.2 |
| Temporary employment | 342,485 | 354,885 | 12,400 | 3.6 |
| Men | 172,454 | 179,515 | 7,061 | 4.1 |
| Women | 170,031 | 175,370 | 5,339 | 3.1 |
| Full-time employment | 2,839,869 | 2,760,153 | -79,716 | -2.8 |
| Men | 1,698,102 | 1,629,006 | -69,096 | -4.1 |
| Women | 1,141,767 | 1,131,147 | -10,620 | -0.9 |
| Part-time employment | 134,527 | 161,962 | 27,435 | 20.4 |
| Men | 37,724 | 47,035 | 9,311 | 24.7 |
| Women | 96,803 | 114,927 | 18,124 | 18.7 |
Source: ESYE, Labour Force Survey 2008, second trimester of 2009 – processed by Kritikidis, 2009
Crisis mainly affects construction and industry
From a sectoral perspective, employment has fallen in 14 of the 21 single-digit sectors of the Greek economy. The most important decreases were observed in the construction and manufacturing sectors, representing one third and one fifth of the decline respectively (Table 3).
Of the sectors where paid employment has risen, the most significant is the domestic services sector. Considerable increases in employment were also seen in agriculture, education, and the information and communication sectors.
| Sectors | Total | |
|---|---|---|
| Paid employees | (%) | |
| Construction | -30,013 | -10.7 |
| Manufacturing | -20,017 | -5.0 |
| Other service activities | -7,668 | -14.5 |
| Financial and insurance activities | -6.314 | -14.5 |
| Electricity, natural gas, steam supply and trade | -5,320 | -15.1 |
| Health and social work | -4,240 | -2.2 |
| Mining and quarrying | -3,780 | -23.0 |
| Arts, entertainment and recreation | -3,704 | -8.5 |
| Public administration and defence, compulsory social security | -3,294 | -0.9 |
| Transport and storage | -1,587 | -1.0 |
| Accommodation and food service activities | -1,041 | -0.5 |
| Administration and support service activities | -849 | -1.3 |
| Activities of extraterritorial organisations and bodies | -640 | -37.1 |
| Real estate management | -169 | -10.9 |
| Water supply, sewerage and waste management | 331 | 1.2 |
| Wholesale and retail trade, repair of motor vehicles | 564 | 0.1 |
| Professional, scientific and technical activities | 3,865 | 3.8 |
| Information and communication | 6,048 | 9.1 |
| Education | 6,278 | 2.1 |
| Agriculture, forestry and fishing | 6,812 | 17.0 |
| Domestic services | 12,515 | 18.4 |
| Total change in paid employment | -52,277 | -1.8 |
Source: ESYE, Labour Force Survey 2008, second trimester of 2009 – processed by Kritikidis, 2009
Higher impact in private sector
The economic crisis has had a major impact on the private sector, where employment decreased by 1.82% or in total by 35,590 people in 2009. In the broader public sector, the respective decrease was lower at minus 1.63%, corresponding to 16,689 people. Although the effects of the economic crisis on the broader public sector are lower and involve different sectors than in the private sector, they are nevertheless significant.
Commentary
The economic crisis has led to an increase in fixed-term and, in particular, part-time employment, at the expense of permanent and full-time employment. As outlined, the impact has been greatest on paid male employees, and in the construction and manufacturing sectors. Although it had a more significant effect on the private sector of the economy, the crisis’s impact on the broader public sector is also evident.
References
Kritikidis, G., ‘Employment and unemployment 2008–2009’ (in Greek, 692Kb PDF), in Enimerossi, No. 165, Athens, INE/GSEE-ADEDY, October 2009.
Kritikidis, G., ‘Changes in paid employment 2008–2009’ (in Greek, 675Kb PDF), in Enimerossi, No. 166, Athens, INE/GSEE-ADEDY, November 2009.
Sofia Lampousaki, Labour Institute of Greek General Confederation of Labour (INE/GSEE)