This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Greece's Weakened Workforce Starts To Crack

"We expect political risk â¿¿ social unrest and the instability of the fragile three-party government coalition â¿¿ to remain a major focal point in Greece this year."

The country, of nearly 11 million people, is stuck in a five-year recession. Greece now has the highest unemployment rate in the 17-strong group of European Union countries that use the euro, with 27 percent out of work â¿¿ 60 percent of those aged under 24. The government-funded research institute KEPE has forecast that unemployment will hit 30 percent this year.

The crisis has left 450,000 households with no one working, while a one-year limit on unemployment benefits â¿¿ and strict rules to qualify for them â¿¿ mean just 225,000 jobless Greeks are currently receiving monthly state assistance.

Maria Kanga, an unemployed mother of two, is worried about what she'll do when her assistance runs out this summer.

She was fired from a chain of record stores that went out of business last year. Along with more than 150 other employees, she was left unpaid for five months and then received no severance money.

Protesting outside a Eurovision Song Contest event hosted by a company co-owned by her former employer, Kanga summed up her situation: "We've cut back on everything ... My daughter is 12 years old. She has one pair of shoes. If they get wet, there are no spares."

"Greece is not a country of bright lights and flashy events. It's a country with people committing suicide, of those unable to feed their kids properly, or who steal from the supermarket ... It's happening to everybody. We are these people."

Normally, those left in employment would be able to help support a government and the economy by spending and paying their taxes. But in Greece, as jobs continue to vanish at an alarming rate, hundreds of thousands of workers are no longer paid regularly, with struggling businesses unable â¿¿ or sometimes unwilling â¿¿ to pay their payrolls.

2 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs