Greece: Unemployment rate drops markedly in July
The number of unemployed workers decreased by 40,485 in July compared to June, while the seasonally-adjusted unemployment rate dropped to 14.2% in July from 15.0% in June. Moreover, the print was below July 2020’s upward revised print of 16.8%. The reading also marked the lowest unemployment rate in over a decade and was likely supported by the reviving tourism industry, which accounts for a sizeable share of the country’s employment.
Greece’s unemployment rate had been falling steadily, since peaking at around 28% in the summer of 2013, until the Covid-19 pandemic struck. Although the unemployment rate has started to decline, it is expected to rise above its current levels by year-end. Meanwhile, the possibility of tighter Covid-19 restrictions, in light of the spread of more infectious Covid-19 variants, clouds the outlook for the labor market.
Lastly, meanwhile, youth unemployment—categorized by individuals between the ages of 15–24—rose to 32.3% in July from 28.3% in June.