Risky shift to service sector
The drop in manufacturing sector jobs and the increase in the service sector lie behind the decline of the jobless rate and growth in employment, according to the intermediary report by the Labor Institute of the General Confederation of Greek Labor (INE GSEE).
In the report released on Wednesday, the institute’s analysts warned that this job shift from the secondary to the tertiary sector of the economy is generating problems in relation to the sustainability of employment, given that salaries in the service sector are generally lower and job security weaker.
This is why GSEE is warning about a possible recession in the economy and is adding in its demands the strengthening of household incomes not only through the increase of the minimum wage, but also via salary raises in various sectors.
The loss of the purchasing power of workers on the minimum salary amounted to 19% in September on an annual basis, and it is even greater for a significant portion of workers at a productive age who are underemployed and their salaries (on which they and their families live) very low. It is no coincidence that every other worker who is underemployed declares they want to have full-time employment but cannot find any.
