Employment and unemployment trends 2008–2009

Lampousaki, Sofia

Overview

Article

Employment and unemployment trends 2008–2009

Published: 27 January 2011

The Institute of Labour of the Greek General Confederation of Labour (INE/GSEE [1]) published its 2010 Economic and Employment Outlook report (in Greek) [2] in September 2010, its thirteenth such report. The chapter on employment and unemployment in 2008 and 2009 concludes that the economic crisis is having the most marked effect on paid employees (as opposed to self-employed workers) and members of family businesses who are working without remuneration. Whereas permanent and full-time employment are decreasing, temporary and part-time employment are recording an increase.[1] http://www.inegsee.gr/kalwshlthate.html[2] http://www.inegsee.gr/ereynes-meletes/ekthesh/ereynes-meletes/ekthesh/Ethsia-Ekthesh-2010-H-ellhnikh-oikonomia-kai-h-apasxolhsh.html

In September 2010, the Institute of Labour of the Greek General Confederation of Labour published its annual report on the Greek economy and employment. The report includes data on basic macroeconomic indicators such as labour productivity, wages, labour costs and investment and makes an important contribution to the public debate on labour market developments and industrial relations in Greece. One chapter is dedicated to employment and unemployment trends.

The Institute of Labour of the Greek General Confederation of Labour (INE/GSEE) published its 2010 Economic and Employment Outlook report (in Greek) in September 2010, its thirteenth such report. The chapter on employment and unemployment in 2008 and 2009 concludes that the economic crisis is having the most marked effect on paid employees (as opposed to self-employed workers) and members of family businesses who are working without remuneration. Whereas permanent and full-time employment are decreasing, temporary and part-time employment are recording an increase.

The crisis is affecting the private sector more than the public sector. Most entrants to the labour market in 2009 were hired by the private sector and two-thirds of new workers in the public sector are temporary workers. Construction and manufacturing are the sectors most seriously affected by the crisis.

Unemployment in 2009

After an unbroken decline over nine consecutive years (2000–2008), the unemployment rate in Greece rose dramatically to 9.4% in 2009. According to forecasts by the European Commission, the unemployment rate is expected to be around 13.2% in 2011, its highest point in the last 50 years.

Family businesses and paid workers hit hardest

The burden of the economic crisis is being shouldered mainly by people in paid employment and workers in family businesses who are helping out without remuneration. For the first time since 1991, paid employment is declining, at a rate slightly higher than the overall fall in employment (Table 1).

**Table 1: Total numbers employed by employment type, 2nd quarter 2008 vs. 2nd quarter 2009**
	2nd quarter 2008	2nd quarter 2009	Overall change 2nd quarter 2008–2009	% change 2nd quarter 2008–2009
Total numbers employed	4,582,127	4,531,915	-50,212	-1.1
Self-employed persons with staff	381,226	384,914	3,688	1.0
Self-employed persons without staff	957,632	961,212	3,580	0.4
Members of a family business	268,873	263,673	-5,200	-1.9
Paid employees	2,974,396	2,922,115	-52,281	-1.8

Source: Hellenic Statistical Authority (ELSTAT), Labour Force Survey

Permanent vs. temporary employment

Permanent employment is clearly declining (Table 2) but only among male workers, of whom 66,845 lost their jobs from the second quarter of 2008 to the same quarter of 2009. Among women, the number permanently employed actually increased by 2,165 during 2009. Temporary employment is also on the rise (Table 2).

**Table 2: Changes in permanent and temporary employment, 2nd quarter 2008 vs. 2nd quarter 2009**
	2nd quarter 2008	2nd quarter 2009	Overall change 2nd quarter 2008–2009	% change 2nd quarter 2008–2009
Paid employee	2,974,396	2,922,115	-52,281	-1.8
Permanent	2,631,912	2,567,230	-64,682	-2.5
Temporary	342,484	354,885	12,401	3.6
% of temporary employment	11.5	12.1

Source: ELSTAT, Labour Force Survey

Full-time vs. part-time employment

In 2009, the proportion of workers employed part time increased to 6.0% compared with 5.5% in 2008 (Table 3). More than half of the rise in part-time work (12,390 people or 55.5% of the change) is due to a rise in the number of women employed part time.

The fall in the number of people employed full time is mainly due to the change in male employment (94% of the change).

**Table 3: Changes in full-time and part-time employment, 2nd quarter 2008 vs. 2nd quarter 2009**
	2nd quarter 2008	2nd quarter 2009	2nd quarter 2008–2009	2nd quarter 2008–2009 (%)
Total employment	4,582,127	4,531,915	-50,212	-1.1
Full-time employment	4,332,065	4,259,475	-72,590	-1.7
Part-time employment	250,062	272,440	22,378	8.9
% of part-time employment	5.5	6.0

Source: ELSTAT, Labour Force Survey

Public vs. private sector

About 1,005,000 people work in the wider public sector (such as public utilities or municipal departments), which amounts to 34.4% of the total number of employees. The private sector accounted for two-thirds (66.8%) of the reduction recorded in total employment in 2009. More specifically, as regards paid employment 58,280 fewer people were working in 2009 than in 2008. Of this reduction, 68% was recorded in the private sector.

Although the private sector is being hit harder by the economic crisis, when taking into account the movement into and out of employment, about eight in 10 people entering paid employment in 2009 were recruited in the private sector. Of those entering the private sector in 2009, about 42% were employed on a temporary basis. In the public sector, about two-thirds of new employees are temporary.

Unemployment trends by economic sector

The construction and manufacturing sectors have borne the brunt of the economic crisis. In contrast, employment grew in agriculture, information and communication, education and households in all quarters of 2008 and 2009 (Table 4).

**Table 4: Quarterly changes in employment by sector, 2008–2009**
Sector	Change from 1st quarter 2008–1st quarter 2009	Change from 2nd quarter 2008–2nd quarter 2009	Change from 3rd quarter 2008–3rd quarter 2009	Change from 4th quarter 2008–4th quarter 2009
Total employment	-25.8	-50.6	-49.7	-76.8
A. Agriculture, forestry and fishing	2.1	10.9	31.5	34.3
B. Mining and quarrying	-4.3	-4.0	-1.8	-1.0
C. Manufacturing	-11.6	-22.8	-28.4	-39.4
D. Electricity, gas, steam and air conditioning supply	-6.4	-5.6	-7.4	-5.0
E. Water s upply, s ewerage, w aste m anagement and r emediation a ctivities	0.1	-0.1	-0.9	0.2
F. Construction	-27.7	-32.7	-21.9	-22.7
G. Wholesale and retail trade, repair of motor vehicles and motorcycles	21.7	-4.4	-23.5	-42.3
H. Transportation and storage	-1.5	4.4	7.5	-0.4
I. Accommodation and food service activities	-8.5	-10.7	6.2	8.7
J. Information and communication	12.8	8.3	7.2	9.9
K. Financial and insurance activities	-10.1	-6.9	-6.3	-0.7
L. Real estate activities	0.6	-0.5	0.0	-1.6
M. Professional, scientific and technical activities	10.3	10.6	-12.4	-18.0
N. Administrative and support service activities	-5.7	0.8	-2.8	-2.3
O. Public administration and defence, compulsory social security	-3.1	-3.3	1.4	-3.9
P. Education	4.0	8.2	1.6	3.0
Q. Human health and social work activities	-9.7	-5.2	0.2	9.5
R. Arts, entertainment and recreation	0.3	-3.1	-7.8	-9.5
S. Other service activities	-1.2	-7.7	-7.6	-7.5
T. Activities of households as employers, undifferentiated goods- and services- producing activities of households for own use	12.1	13.7	15.1	11.5
U. Activities of extraterritorial organisations and bodies	-0.4	-0.6	0.4	0.3

Source: ELSTAT, Labour Force Survey

Sofia Lampousaki, Labour Institute of Greek General Confederation of Labour (INE/GSEE)

Eurofound recommends citing this publication in the following way.

Eurofound (2011), Employment and unemployment trends 2008–2009, article.