Job programs are raising questions
The majority of unemployed people in government-run training programs remain without work after the completion of the course, according to a recent study. The report, prepared by the Institute of Labor (INE), found that seven out of every 10 who had completed a training course run by the Manpower Organization (OAED) remained out of work. About one-third managed to improve their employment status after getting some help from political contacts, the report underlined. The inclusion of a large number of unemployed people in training programs run by the Employment Ministry is believed to have helped the conservative government lower the country’s high jobless figures. Greece’s unemployment rate in June stood at 7.3 percent, down from 11.2 percent in 2004. Structural rigidities in the economy, such as a lack of competition in key sectors, are largely blamed for the high jobless rates despite years of strong economic growth. OAED programs have also been criticized for artificially keeping afloat a number of small businesses by offering cheap finance. About one-third of the businesses participating in such schemes keep operating after the funding ends, according to INE, a research group established by private and public sector union groups GSEE and ADEDY. Other shortcomings in the OAED programs include paying businesses to hire staff whom they would have employed in any case, irrespective of the funding. OAED employment schemes started in 1983 in the form of programs providing incentives to employers, to initially create 4,624 jobs. But this figure has climbed to an annual number of 30,000-40,000 employment positions, without OAED providing any form of evaluation of its programs. The schemes – jointly financed by the Greek government and the European Commission – will co-fund some 600,000 jobs over the period 2007-2013. The financial contribution from the EU for the six-year period is expected to reach 2.6 billion euros.
