In the context of supporting the long-term unemployed during this critical period of the pandemic's impact and the ongoing evaluation of employment programmes, the Board of Directors of the Public Employment Service in collaboration with the Ministry of Labour and Social Affairs today approved the significant increase in jobs offered, the expansion of beneficiaries and the increase in the programme's subsidy employment of long-term unemployed persons aged 55-67.

It is reminded that as a long-term unemployed person is counted by the OAED the unemployed person who has been without a job for more than a year.

The latest OAED measurements show that the long-term unemployed exceed 580,000.

Employment programme for 8,500 long-term unemployed

Specifically, the amendment includes the following main changes for the immediate strengthening and improvement of the program that had recorded only 1,200 recruitments in 2.5 years:

• Reinstatement of 5,000 new positions that had been removed in 2018, in addition to the 3,500 vacancies, for a total supply of 8,500 new jobs.
• Expansion of beneficiaries by adding all Legal Entities of Public Law as well as all Local Government Organizations of the first and second degree that do not carry out economic activity, in addition to enterprises, bodies and organizations of the public sector and enterprises of Municipalities and Regions that regularly carry out economic activity.
• Increase of the subsidy from 50% to 75% of the monthly wage and non-wage costs and the ceiling from € 600 to € 750 per month.

Duration of the grant

The duration of the grant remains at 12 months with the possibility of extension for a further 12 months, at the request of the beneficiary.

Older unemployed people face significant barriers to reintegration into the labour market and remain unemployed for much longer periods. While 48% the registered unemployed are long-term unemployed (for at least 12 months), more than 2/3 of the unemployed aged 55 and over are long-term unemployedtotal 28% of the long-term unemployed are aged 55-67 years. The aim of the improvements is to support this vulnerable group of the workforce through an increased number of recruitments in the immediate aftermath of the enhanced programme.

"The aim of the Ministry of Labor is, through continuous evaluation, to continuously improve the programs against unemployment and to support in every way the particularly weak groups of the population. In collaboration with the OAED Commander Mr. Spyros Protopsaltis we intervene with a special protection network and reform the employment subsidy program for the long-term unemployed aged 55-67, increasing the offered jobs of the program to 8,500 in a critical period of the labor market due to the coronavirus", stressed in his statements the Minister of Labour, Yiannis Vroutsis.

Parallel actions for the subsidy of the unemployed by the OAED

At the same time, the two-month extension of all basic unemployment benefits, which expired in the first quarter of 2020, is already being implemented, which causes additional expense to the OAED budget.

This measure may continue beyond the end of May, when the maximum time limit for the payment of extended unemployment benefits has been set, according to a scenario envisaged by the government.

Also, next week, according to circles of the Ministry of Labor, the tender for more than 36,500 jobs in a community service program in municipalities and regions will be published.

At the same time, however, the loss of more than 41,000 jobs that occurred last March, due to coronavirus, is expected to possibly add close to 20,000 new subsidized unemployed, according to the first estimates of competent officials.

At the same time, an increase in the number of registered unemployed is expected, due in particular to the ongoing decline in new hires (in addition to the ongoing redundancies) in the tourism and catering sector.