Monday, March 4, 2013

Eurozone: One-Third of Greeks Expect to be Unemployed by Year's End, Jobless Rate in Spain at 26%

According to The Associated Press, unemployment in Greece rose to a record 27% in November as separate surveys on Thursday (February 28) revealed that the country remains stuck in recession.

To make matters worse, nearly a third of the population is expected to be in poverty by the end of the year [2013]. 

Worst affected are the young, with 61.7% of those in the 15-24 age group without a job. 

Greece is mired in the sixth year of a recession, and has been relying for nearly three years on international rescue loans to keep it afloat. In return for the bailout, the government has imposed major spending cuts and tax hikes which have hammered the economy, causing an increase in poverty and forcing thousands of businesses to close. 

And, in Spain, things are really not much better, albeit slightly.

Spain now has a record five million people registered as unemployed as the country also remains stuck in recession.

The Labor Ministry said Monday that the number of people on the unemployment list in February jumped by 59,444 compared with January, making for a total of 5.04 million.

Spain's unemployment rate was at 26% at the end of the fourth quarter.

COMMENT: In contrast to decades ago, and largely because of globalization, an interdependence on the financial structure in other countries not to mention an over-reliance on stock exchanges worldwide, what impacts on the Euro-zone impacts enormously on markets around the globe.

Unfortunately, and yet understandably, when unemployment reaches 25% in any country, a spike in crime often occurs, simply because of the desperation factor.