Unemployment In Greece Case Study

Introduction
In my essay, I present the economic implications of the unemployment in Greece to the various stakeholders. In the latest years after the start of the recession, unemployment in Greece has systematically increased, reaching 27.09% in 2014. Having such high unemployment cannot be without its consequences. Many issues have emerged due to that, including loss of income, decrease of output and aggregate demand, deterioration of the workforce, high suicide rates and much more. I have discussed all those thoroughly.

Implications on the Greek economy as a whole
As most textbooks say, below are the general effects of unemployment on a country [Bibliographic source 34] :
Persistently high unemployment creates huge costs for individuals and for the economy as a whole. Many of these costs, especially the long-term social costs, are difficult to assess by measuring.
1. Loss of income: Unemployment typically results in a loss of income. The majority of the unemployed has to withstand a decline in their standards of living and is worse off out of work. This subsequently means a decline in spending power and the rise of falling into debt problems, like having difficulties keeping up with their mortgage repayments.
2. Negative multiplier effects: The closure of a local factory with the loss of hundreds

First of all, businesses gain an advantage from unemployment, which is the fact that the wage rates fall, along with the loss of power of trade unions. This means that they have to pay much less overall for the cost of labor which they need in order to operate. Moreover, the costs of Greek raw materials fall, which leads to a further decrease in the costs of the business. Due to that, the supply of the company also rises, because it is inversely proportional to the costs of production, which means that as one of the two is increased, the other one is