The creation of employment opportunities for all men and women is an essential component and one of the main objectives of the social and economic policy of the overall programme of the Greek government. Among the long-term objectives is the gradual creation of new jobs through the structural realignment of the economy within the framework of the convergence of EU economies. The fight against unemployment is a priority in planning the state's policy.
The general policy of the country is, furthermore, greatly concerned with working conditions and the reorganisation of the services responsible for employment. It should be noted that over the last thirty years Greece has achieved substantial economic growth. However, this type of growth has been characterised by distinct regional disparities and unequal and unbalanced development between the different sectors of the economy. This has resulted not only in the exodus of the population from the rural areas to the large urban centres and in emigration, but also in the peculiarity of the structure of occupations and in the lack of manpower planning. International conditions and national measures over the last ten years have resulted in an expansion of the Greek labour force, which has outstripped the increase in the level of economic growth. This increase in the size of the labour force is explained by women's employment, net immigration and population increase.
With this in mind, governmental policies are striving to make an equitable contribution to regional development and a positive impact on the problem of employment disparity.
The following institutions and public services are directly involved in employment policy in Greece.
- The Ministry of Labour and Social Security.
- The Public Employment Service (OAED), which is responsible for labour market policy in general, with broad responsibilities influencing the supply and demand of labour. The OAED has more than 100 local offices around the country.
- The Ergatiki Hestia (Employees' Fund) (Law 5204/31) is responsible for the implementation of certain aspects of social policy for employees and their families:
- the cultural and social improvement of employees and pensioners;
- the expansion of the organisation and activities of employee organisations.
The Employees' Fund is a legal entity governed by public law. It is administered by a Board of Directors consisting of its president, one civil servant from the Ministry of Labour and Social Security, a specialist in social policy matters, three representatives of the trade unions and three of employers' associations. It has a total staff of 916 established civil servants and 73 employees with private-law contracts. It has a central office and numerous centres around the country.
- The Organisation of Ergatiki Katikia (Employees' Housing Agency) is a legal entity governed by public law (Decree-Law (ND) 2963/54). Its principal aim is to build and allocate houses or apartments to employees. It may also make loans to employees, on very favourable terms, so that they can purchase, build or furnish a house.
The Governing Board consists of nine members: the president of the Organisation, one civil servant from the Ministry of Labour and Social Security and one from the Ministry of Public Works, three employers' representatives and three employees' representatives. Its staff consists of 445 civil servants and 150 employees with private-law contracts. Its headquarters are in Athens. There is also a local office in Thessalonica. Employees may also turn to the local offices of the Ministry of Labour and Social Security.
Unemployment can only be reduced and employment increased if consideration is given to the general economic situation. A high rate of inflation, high budget deficits and high debt are not ideal conditions for economic growth or for reducing unemployment.
The revised programme for the convergence of Greek industry (1994-1999) - already successfully implemented by the Greek government - represents the macroeconomic framework for creating the conditions that will lead to high and stable growth rates and lower unemployment.
The priorities in the policy followed by the Ministry of Labour and Social Security are to reduce unemployment and to promote employment.
- The aims are pursued by means of a macroeconomic policy of stability, public investment in infrastructure (through funding from the Public Investment Programme and the Community Support Plan), investment in the private sector through the Growth Act and structural interventions in the labour market.
- These endeavours are closely related to necessary efforts to reform the labour market. The aim is a form of regulation which takes account of the new conditions and the rapid changes in production structures and which facilitates job creation. The implementation of the new structural policy to combat unemployment and to promote employment is supported by Law 2434/96, "Policy Measures for Employment and Vocational Education and Training". The essential elements of the new policy are a range of measures to reform traditional labour market policy in the direction of active employment policy. The structural elements of the new policy are based, on the one hand, on investment in human resources (training and education) and, on the other, on the creation of employment opportunities for the unemployed, in particular for those groups affected most severely by unemployment: youth, women, long-term unemployed, unemployed in structurally weak areas and those affected by mass dismissals.
Finally, it should be noted that profound changes in production structures and in the new competitive environment also affect the factor of labour. New occupations are emerging while others are disappearing, and working conditions are changing at a rapid rate. In the light of these developments the Greek government, by formulating a package of proposals and issues to be dealt with, has begun a process of social dialogue with the responsible social bodies. The goal is to develop new regulations for the labour market, which will not only improve the competitiveness of the economy but also ensure the protection of the employees in the light of the new conditions, and which at the same time pursue growth, competitiveness and employment.
Fundamental changes are currently taking place in the Greek economy. Inflation has fallen to 2.4%. Greece has already fulfilled four of the five criteria for EMU and is expected to meet the fifth criterion, which regards inflation, within the coming months. Investment rates have increased substantially both in the public and the private sector. The acceleration of private investment is a positive indication of the success of Greece's economic policy and of its efforts to meet the challenges currently faced. The high rate of mobility observed especially during the last two years in the country's entrepreneurial sector - mergers, takeovers, foreign expansion and foundation of new enterprises - illustrates the rapid and dynamic adjustment of the Greek economy to the competitive conditions prevailing today. The main direction of the government's structural policy has been comprehensive restructuring of the public sector and the adaptation of the markets to the new conditions. The government has launched ambitious programmes with the aim of reducing the high level of unemployment. The National Action Plan for Employment represents an attempt to systematically improve Greece's human resources through training and further training so that they are capable of satisfying the requirements of a modern economy.
On the basis of the achievements to date, the policies of the coming years will be targeted at the following aims:
- maintaining budgetary stability;
- continuation and completion of large-scale development projects and schemes;
- continued structural adaptation of the economy to the new competitive conditions.
Finally, a priority area for government policy is the reinforcement of social cohesion through more equitable distribution of the national income and the further development of the social state. The government has considerably increased spending in recent years in the areas of health and social affairs, in particular. Its aim is to improve the quality of life of the citizens at the same time as raising their standard of living.
EU – European Commission DG EMPL/A/2 J
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