Greek labour market is suffering greatly.

According to a study, that was conducted by the ALBA Graduate Business School during the period between May and June of this year, show clearly that the index of the labour market for the second half of 2011 will only decrease and is currently suffering greatly. From the data presented one in three companies will reduce staff by 2012, while one in two are not planning to increase workers’ wages and one in five companies claim that they are ready to reduce wages altogether. It should be noted that from a total of 208 companies that took part in the study, 51,1% were Greek while 48,9% were multinational.

The findings proceed as follows:

  • 34% of companies may make a reduction of their workforce in the next six months. Only 17,9% will conduct recruitments.
  • 50,7% of companies did not provide any increases in the last year and this figure will reach 54% in the coming 12 months. Only 9,9% will provide increases over 3%.
  • 3.   In contrast to the general economic climate, one in two companies, still appears optimistic (48,1%).
  • Increase over 20% in attracting and selecting staff is only expected in the services sector, pharmaceuticals, construction and industry. In the education sector the growth expectations of actions to attract new staff are zero, same with the banking and tourism sectors. The trade sector shows even lower rates, below 10%. In the banking sector the number of voluntary retirements has risen by 30%.
  • 63,2% of companies state it has been greatly affected by the current economic crisis, an increased percentage compared to the past six months (52,4%). Only 1,4% said that it is totally unaffected.
  • 50% considers likely or very likely the possibility to reduce employee training, while the training of managers will also suffer by 40%. In addition, approximately 60% plans to reduce bonuses, while 19,6% will proceed to salary reductions (17,9% is thinking about it). 6,4% is considering to relocate part of the company or all of it abroad.
  • 41,3% has made layoffs in the last six months while 22,5% has reduced its wages.


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