The unemployment rate of young people in some parts of Greece is almost 75 percent, which is significantly higher than the unemployment level of other states in Southern and Northern Europe, based on data released by Eurostat on Wednesday.
According to Eurostat, the total youth unemployment rate in Greece was 55.3 percent in 2012, more than double the 22.9 percent average unemployment rate in the European Union (EU). Data showed that Western Macedonia in Greece has the highest level of unemployed youth (16 to 24 years old) in the European Union with 72.5 percent last year, up from 52.8 percent in 2011.
Northern Part Of Greece Was Affected By Economic Crisis
The unemployment rate in the Northern part of Greece, which was affected primarily by the economic crisis increased from 12.1 percent in 2007 to almost 30 percent last year. Labor-intensive industries transferred their business operations from Greece to other neighboring countries with lower wage demands, which is one of the main reasons for the increase of unemployment rate in the country. Last December, The European Commission (EC) reported that more than 20 percent of companies stopped their trading operations in the region from 2008 to 2011.
Due to the high unemployment rate in Greece, radical groups, particularly the radical leftist could pose a threat to the country as they gain support from people deeply affected by the crisis. Greece has a long history of left wing radicalism inclined toward violence.
On the other hand, some areas in Spain have the highest unemployment level. Andalucia, the most populated area in the country, has an unemployment rate of 34.6 percent in 2012, up from 30.4 percent a year earlier.
Eurostat revealed that 9 out of the 10 areas with the highest unemployment rate in the Europe were in Greece and Spain while areas with the fewest number of unemployed individuals were in the Northern part of Austria, Germany, Czech Republic, and the Netherlands. Salsburg and Tirol in Austria have the lowest level of unemployment with only 2.5 percent.
The area in the United Kingdom with the highest unemployment rate of 11.7 percent is the West Midlands. The rate of unemployed women in the area is 11.3 percent. Data from the Office of National Statistics indicates that the jobless rate among women is now at its highest level.
Jose Manuel Barroso, president of the European Commission, encouraged leaders in the region to develop a plan to resolve the increasing unemployment rate among young people in the upcoming EU summit. He said, "We must give, revive hope, especially for young people. We cannot wait for long, we are all aware this is urgent."
A previous report from Citigroup, Inc (NYSE:C) cited that there is a great possibility that Greece and Cyprus might leave the European currency in the future, which will be triggered by different factors.