Ernst & Young: Grim unemployment predictions for Greece (28%) and Spain (27%)

A study of the Ernst & Young financial auditors company predicts a new record low for unemployment in the eurozone, with the number of unemployed surpassing the 20 million mark in the second half of 2013, from 18.7 million in October, protothema reported.

Ernst & Young bases its assessment mainly to the decrease of competitiveness. According to the study, the overall economic performance of the eurozone countries will decline by 0.2% accompanying the decline of 0.4% recorded in 2012. As the authors of the study write, «the following year too will be very difficult for the eurozone.»

Grim predictions for Greece and Spain

They believe that the situation in Greece and Spain will be particularly difficult. Regarding the first, they predict a further reduction of GDP up to 4.3%, with growth returning in 2015. The already very high unemployment rate in Greece is expected to make a new upward leap, reaching 28% in 2013.

Things in the field of unemployment are not much better in Spain, where Enrst & Young analysts predict that the relevant index will reach 27%. Despite the reduction in the number of unemployed by the closing of 2012, the country΄s politicians justify this reduction referring to the fact that the Christmas season traditionally employs more workers due to a transient increase in labor market needs.

Instead, the situation in Germany is good despite the rise in unemployment in the last month of 2012 by 88,000 people. In December, the number of unemployed stood at 2,840,000, and the relevant rate at 6.7%, as indicated by the Federal Labour Agency. The increase in unemployment during December is not uncommon, however in 2012 this trend appears stronger. Same month, the number of vacant positions stood at 421,000. Most are located in the fields of mechanical engineering, electrical engineering, energy, machine building and transport. (via Capital.gr)

 

PS Ernst & Young predictions for unemployment in Greece are slightly better than those by private sector union GSEE with a rate between 29% and 35% for 2013. Most probably GSEE has taken into consideration all parameters like self-employed, part-timers, unregistered labour and six-week training programs for jobless that ‘falsify’ the unemployment rates of the real life and economy.