Greece hits a new low: Unemployment rate now at 21.9%

Greece’s unemployment shot up to 21.9 percent in March, rising sharply from the 15.7 percent rate in the same month last year and up from 21.4 percent in February, the country’s statistics agency said on Thursday.

Greece has been struggling through a financial crisis for the past two years, and has been relying on billions of euros in international rescue loans from other eurozone countries and the International Monetary Fund since May 2010. In return, it has made deep spending cuts and imposed major tax hikes, leaving the country mired in a deep recession.

The statistics agency said Thursday that unemployment was up 37.8 percent in March compared with the same month last year. Compared with February 2012, there were 21,625 more people unemployed this March, a 2.1 percent increase.

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Young people have been the most affected by the job losses, with more than half-52.8 percent - of those in the 15-24 age group out of work in March, compared to 42 percent in the same month last year.

Greece’s financial crisis has also triggered political turmoil. Voters furious at spending cuts that have led to reductions in pensions and salaries and ever increasing taxes punished the two main political parties, the New Democracy conservatives and socialist Panhellenic Socialist Movement (PASOK), in May 6 elections, turning to smaller and more radical parties on the right and left of the political spectrum.

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No party won an outright majority on May 6 and coalition talks collapsed after 10 days, forcing the country into new elections on June 17. New Democracy has been running head-to-head with the radical left-wing Syriza party in recent opinion polls. Syrisza has vowed to pull Greece out of its bailout commitments if elected.

AP