In order to further reduce the unemployment rate, young people will receive government support. Within six months, they will receive an amount of 1200 euros from the state upon their first employment.
In the coming months, the Ministry of Labor will implement seven programs with a total and additional value of € 1.193 billion aimed at attracting youth to the labor market and creating jobs in general, with the aim of further addressing the problem of unemployment. The programs have been announced by the Prime Minister, Mr. K. Mitsotakis and developed by the Ministry of Labor.
Mr. K. Hatzidakis presented the official data on unemployment, noting that from the moment the current government came to power in July 2019 until today, it has increased by about three percentage points. “Nevertheless, the declared for July 2021 the share of unemployed of 14.2% is a high indicator, but at the same time the percentage of unemployed youth is also extremely high. Therefore, further efforts are needed to solve the problem. “
According to official data, the number of employed (4,011,357) in July 2021 is the highest since 2011, and the number of unemployed (664,384) is the lowest since October 2010.
Seven programs that will be launched immediately or will be implemented early next year:
1. “First aid” refers to young people under 29 years of age with no previous experience who are taking a job for the first time. For six months, the state will support these young people in the amount of 1,200 euros when they are first hired – 600 euros will come from employers, and the remaining 600 euros from the government’s youth support program.
For work (part-time) corresponding to at least 50% of full-time employment, half of the amount will be provided. The budget of the program is 42 million euros for 2022 and 2023, while it will include a clause on preserving jobs for companies that will implement it. This program can be implemented in conjunction with the insurance premium subsidy program, as well as with other programs implemented by the OAED.
2. The COOPERATION program has been extended for another three months – until the end of the year. The program ended at the end of September. This allows the employer to hire a half-time employee, and the state is obliged to cover 60% of the wages. The employer pays the insurance premiums. The program was implemented during the pandemic. At the moment, 121 million euros have been paid out, and with its expansion, another 50 million euros will be allocated.
3. From 2022, the number of subsidized new jobs provided through the Ministry of Labor programs (for a period of six months) will increase from 100,000 to 150,000. These programs cover insurance premiums for an additional 50,000 jobs in all sectors of the economy (a total of 150,000 work places). The program includes special care for the long-term unemployed who receive a subsidy of an additional 200 euros. A total of 80,000 unemployed people have found employment under the program and 55,000 are currently employed.
4. The current reduction in insurance premiums by 3% will be extended until the end of 2022 and will cost the state 816 million euros. The decrease is 1.79 percentage points (employers’ contribution) and 1.21 percentage points (for a worker’s salary). It is noted that the reduction in insurance premiums burdens the budget, not EFKA and OAED. This will not affect the profits and losses of these two organizations in any way.
5. In December, all recipients of the minimum guaranteed income will be paid double the amount they receive each month. These are 257 thousand households or about 500 thousand people. An amount of 200 euros per month is provided for each family of one person, which is increased by 100 euros for each additional adult and by 50 euros for each child. The budget of the measure is 64 million euros.
6. Payment of the special allowance – 534 euros per month additionally for two months:
for those who practice art (καλλιτέχνες), June and July; for guides, for May and June.
The “aid” budget is 30 million euros.
7. The program of subsidizing vacancies in the field of culture has been extended until the end of 2021. Total cost: 22 million euros.