The labor reform promoted by Prime Minister Kyriakos Mitsotakis laid the foundations for the reactivation of the financial system and the restoration of the labor market. The Minister deepened the deregulation of labor laws to be able to encourage formal hiring and scale back unemployment.
The first outcomes of the brand new laws are overwhelming. The unemployment price fell to 11.6% of the energetic inhabitants in October 2022, and it’s the first time that the indicator has scored under 12% since April 2010.
Only because the launch of the reforms has unemployment amassed a drop of 4 share factors since June of final 12 months. The variety of employed individuals reached 4,152,000 in October, and as soon as once more constitutes an important document because the second quarter of 2010.
Unemployment is near reaching the bottom ranges recorded since earlier than the Great Recession of 2008. But not like then, this time the extra versatile labor laws permits the identical price of GDP progress to now be able to creating extra jobs of labor than earlier than.
Likewise, Greece ceased to carry the best unemployment price within the European Union since June 2022, since from that second the place is occupied by Spain. It ought to be famous that the Government of Pedro Sánchez carried out a labor reform diametrically against the Greek one, which toughened the regulatory strain on contracts within the nation.
THE MAIN POINTS OF THE LABOR REFORM
As of June of final 12 months, the brand new labor laws allowed the introduction of extra versatile contracts centered on hiring younger individuals, a brand new particular authorized framework for teleworking was designed, and social costs have been lowered at a normal degree.
Labor taxes on payroll paid by firms have been decreased from 24.81% to 22.54%, whereas the tax on gross land acquired by staff was lowered from 15.75% to 14.12%.
The new labor regime actively promotes the decentralization of labor negotiations. Workers have been empowered to freely negotiate with their staff within the case of prolonged hours, whereas the authorized restrict elevated from 8 to 10 hours per day however not the restrict of 40 hours per week.
With data from La Derecha Diario