Expanding numbers of young Greeks unemployed
By Ingrid Melander and Renee Maltezou
ATHENS, Sept 17 (Reuters) – Growing youth unemployment in Greece will drive voters away from the conservatives on Oct. 4, but the opposition has yet to convince voters it has a better cure for what has become a chronic disease.
Unemployment among young people has been structurally high in Greece for some 20 years, affecting almost every family, but the problem is worsening as the country faces its first recession in 16 years before next month's parliamentary vote.
Data showed on Thursday nearly 18 percent of 15-29 year old Greek workers were unemployed in the second quarter, compared with 8.9 percent for the whole population and strongly up from last year.
The issue has proven explosive in the past. Last year leftists and young students took to the streets in Greece's worst riots in decades over the economy and the killing of a teenager by police.
Analysts cite many factors: labour laws that make it hard to hire and fire, a minimum wage set too high and a university system out of touch with the business world, producing too many graduates in fields like mathematics and aquaculture and too few in nursing and manufacturing.
"High youth unemployment means many things must be wrong with the economy," said Fitch analyst Chris Pryce. "It tells us the economy is very inflexible."
Polls show the ruling New Democracy trailing the main opposition socialist PASOK party by about 6 percentage points.
But PASOK does not yet have enough votes to form a government, and with Greece's 250-billion euro ($364 billion) economy sharply hit by the global slowdown, the party will have its work cut out to show it can solve the problems.
"If someone can make them (the young) believe they are going to have opportunities in the future, this would be a serious criteria to vote," said Costas Panagopoulos, managing director of pollster ALCO.
"But this is not easy," he said. "Young people seem to reject PASOK and New Democracy, they blame them for what they are suffering, for what they are living now."
CRISIS
Greece's youth unemployment is the fourth highest in the European Union, first quarter Eurostat data showed.
It is particularly hard for young Greeks to find a job these days as the crisis knocks income earners like tourism, which accounts for one in five jobs.
Greek companies such as cooler maker Frigoglass <FRIr.AT> and Emporiki Bank <CBGr.AT> have announced job cuts. Others, like aluminium products maker Alumil <ALMr.AT>, are cutting working hours and reducing pay.
When they do find work, young Greeks often have to accept low-paid, part-time jobs with no contract and no social security, or work illegally.
This often goes on well into their early thirties, forcing many to live with their parents or to ask them for money.
PASOK says it will provide people up to 25 years old and university graduates up to 28 years old with training, allowances to set up their own small business and special work contracts of up to four years where the state will pay most of the social security contributions in the first years.
It would also increase unemployment benefits and the period for which one is entitled to them, it says on its website.
Incumbent Prime Minister Costas Karamanlis's message is that things will get tougher before they get better, but the economy will recover and then the government can focus on jobs.
He has said in campaign speeches that he would freeze hiring in the public sector, where many Greeks hope to take refuge from the crisis, if re-elected, for example.
New Democracy's backing in the 18- to 24-year-old age group has dropped to about 18 percent, Panagopoulos said, as they turn to smaller parties or PASOK, which could garner more than 30 percent of the youth vote.
Some 20 percent of young voters are still undecided.
"None of the parties shows interest in or is close to young people," said Katerina Syrigou, 21, studying to work in a kindergarten. "I voted for New Democracy in 2007 but I won't do that again, I don't trust them and don't like their policies. I'm not sure I'll vote in these elections."
