Greek youth unemployment edges toward 60pc

By Telegraph Staff and agencies 1:09PM GMT 10 Jan 2013

Joblessness among Greek youth edged closer to 60pc in October, figures from the state statistics agency revealed on Thursday, with the country's unemployment rate hitting a new high of 26.8pc in October

Protesters march towards the Greek Parli...Protesters march towards the Greek Parliament in Athens on December 19, 2012, as Public services in Greece are hit by a 24-hour strike called by unions in protest at damage to the sector caused by sweeping austerity measures. The European Central Bank said today that it will begin accepting Greek bonds as collateral for central bank loans again, at a discount, a move that will give a boost to eurozone banks still holding the risky instruments. Photo: AFP PHOTO / LOUISA GOULIAMAKILOUISA GOULIAMAKI/AFP/Getty Images

The number youths aged between 15 and 24 out of work in October rose to 56.6pc, compared with 22.1pc in the same month four years ago, statistics service ELSTAT said.

Greece's jobless rate has almost tripled since September 2009 as the country's debt crisis emerged, and is more than double the average rate in the 17-nation euro zone, which stood at 11.8pc in November.

A record 1.34 million Greeks were without work in October, up 38pc from the same month in 2011, with another 36,219 lost after September when the jobless rate stood at 26.2pc.

Austerity policies imposed by the bailed-out country's international lenders to shore up public finances have taken a toll on the battered economy, which was shrinking at an annualised rate of nearly 7pc in the third quarter.

Greece is expected to stay in recession for a sixth consecutive year in 2013, with national output seen contracting by 4.5pc, the Athens-based IOBE think-tank said on Thursday, as budget cuts and tax increases worth €9.4bn weigh.

The forecast is slightly worse than the recession estimate from the government and the country's international lenders.

The European Union and the International Monetary Fund bailing out the country expect the economy to contract 4.2pc in 2013.

Greece has been struggling through a severe financial crisis since late 2009, and has been dependent on international rescue loans since May 2010.

In return, the government has imposed strict austerity measures that have slashed salaries, increased taxes and plunged the country into a recession. Tens of thousands of businesses have shut down.

Trades unions say the real jobless figure is much higher.

Greece saw a fall in inflation in December to 0.8pc compared to 2.4pc in the same month a year earlier. However, the cost of housing has jumped by 11pc compared to the level last year owing to fuel and electricity price rises, and the price of clothing rose by 5.3pc.

Health costs and communication charges fell by 3.9pc over the same period.

Greek youth unemployment edges toward 60pc - Telegraph