The Unemployment Gap’s Just Part of It…
There’s a lot of commentary wandering around as it’s revealed Greek youth are 6x more likely to be unemployed (using ILO measures) than those in Germany. The truly staggering gap in unemployment rates is remarkable (particularly since Germany has been implementing government subsidization of employment through their kurzarbeit while demanding “sacrifices” from other EU states), but so is another stat.
Specifically earnings gaps. Greece has tried to entice youth hiring by slashing the required minimum wage per month to a mere 500 euros/month. (This works out to 2.9 euros/hour based on how Eurostat calculates statutory minimum wages.) and you still see unemployment rates of about a quarter of its population out of work and over 60% of its youth population. By contrast in Germany (a country without a statutory minimum wage, but a complex “fair wage” system) only about 1.2 million people in the entire country make less than 5 euros per hour (out of a labor force of 42 million).
This is just getting uglier and uglier.