ECONOMY

High price of unemployment

The annual cost of unemployment to the Greek economy is estimated at 3.95 billion euros at least, while amounting to nearly 1 billion euros for the commerce sector alone, according to a report by the Commerce and Services Institute of the National Confederation of Greek Commerce (ESEE).

Based on the most recent figures compiled by the Manpower Organization (OAED) that date from July 2012, the minimum monthly cost of unemployment for the organization amounts to some 67.4 million euros, or 800 million euros per year, with the situation deteriorating every month.

The losses incurred by social security funds due to the reduction of contributions exceed 3.8 billion euros based on the new minimum wage. If one deducts the unemployment that would be recorded regardless of the financial crisis, the minimum losses amount to 3.14 billion euros, the study suggested.

In commerce, social security contribution losses amount to 707 million euros and jobless benefit payments add up to 200 million.