BBooGG HHooww ccr­ri­is­si­iss hhaass aafff­feec­ct­teedd pprri­iv­vaat­tee sseec­ct­toorr eemmp­pllooyym­meen­ntt

Financial Mirror (Cyprus) - - FRONT PAGE -

In its lat­est eco­nomic bul­letin, the Bank of Greece (BoG) in­cluded a study that sets out how pri­vate sec­tor em­ploy­ment has been af­fected dur­ing the cri­sis.

The first find­ing is re­lated to the evo­lu­tion of em­ploy­ees in­sured in IKA, the largest so­cial se­cu­rity or­gan­i­sa­tion in Greece, sug­gest­ing that the num­ber of those in­sured in IKA fell by 31.2% to a low of 1.43 mln in De­cem­ber 2012, about 650,000 less jobs com­pared to the peak of 2.08 mln in June 2008.

This is much higher com­pared to a rise of 24% or 400,000 new jobs reg­is­tered in the 6-year pe­riod prior to June 2008.

Ac­cord­ing to the study, the num­ber of those reg­is­tered with IKA has been mov­ing up­wards since early 2013 and from May 2013 has risen month on month. At the end of Novem­ber 2013 (most re­cent avail­able data), em­ploy­ment de­clared at IKA stood at 1.61 mln, which is higher by 160,000 year on year (YoY).

The study con­cludes that it is likely there will be an over­all rise in those reg­is­tered with IKA in 2013 and 2014.

This mainly stems from an in­crease in the num­ber of new hir­ings an­nounced by the pub­lic Hu­man Re­sources Em­ploy­ment Or­gan­i­sa­tion (OAED) in 2013 which out­paced with­drawals by 133.5 mln for the first time af­ter six con­sec­u­tive years of neg­a­tive bal­ance.

The BoG study also pointed to Hel­lenic Sta­tis­ti­cal Au­thor­ity (ELSTAT) fig­ures for to­tal em­ploy­ment, which showed it rose 0.4% YoY in March 2014 for the first time since 2008.

How­ever, these fig­ures for March were re­leased at the begin­ning of June. The more up­dated fig­ures pub­lished on July 10, showed a re­vi­sion of March data now point­ing to a slower YoY growth in the non-sea­son­ally ad­justed em­ploy­ment at 0.1%. In ad­di­tion, this pos­i­tive trend was re­versed in April, which recorded a drop in em­ploy­ment by 1.8% YoY.

The num­ber of firms in­sur­ing their em­ploy­ees with IKA also showed a dra­matic change dur­ing the cri­sis years. In the fouryear pe­riod prior to June 2008, this Óum­ber rose by 30,000 to 287,000.

In the en­su­ing 3.5-year pe­riod to De­cem­ber 2012 it nose­dived by 100,000 - or 36% - to 178,700. The study in­di­cates that since then, the num­ber of firms has in­creased by 16% or by 30,000 un­til Novem­ber 2013.

Nom­i­nal daily wages for men rose 6.7% in 2009, 1.3% in 2010 and 0.7% in 2011, be­fore fall­ing by 4.1% in 2012. The equiv­a­lent fig­ures for women showed a higher in­crease (37.5% ver­sus 32.5% for men in 2004-2011) and a sim­i­lar drop in the Jan­uary 2012-Novem­ber 2013 pe­riod, at -12.8% for women and at -13% for men. How­ever, the daily wage for women stands at 42.9 eu­ros, which is 20% below that of men (53.5 eu­ros).

The BoG study also found that com­pa­nies ini­tially re­acted to the cri­sis through job shed­ding, which was later fol­lowed by a cut in wages.

In par­tic­u­lar, new hir­ings for full-time em­ploy­ment halved from 746,900 in 2009 to 375,800 in 2012, while the 35,500 project con­tracts in 2009 elim­i­nated to just 3,000 in 2012. On the flip­side, con­tracts for part-time em­ploy­ment in­creased by 84,000 in 2010-2012.

The study also showed that in 2010-2012, 100,000 full-time con­tracts were con­verted to part-time and another 70,000 to ro­ta­tional shift work. In ad­di­tion, 94,000 em­ploy­ees saw a wage re­duc­tion in their labour con­tracts in 2012, while nom­i­nal salary cuts im­ple­mented in 2012 af­fected 261,300 em­ploy­ees with an av­er­age wage re­duc­tion at 22.2%.

The study con­cluded that since the begin­ning of the Greek cri­sis un­til De­cem­ber 2012, the num­ber of firms with em­ploy­ees in­sured in IKA de­creased by 36%, em­ploy­ment fell by 31.2%, while real daily wage was cut by 7.35%.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.