Greek brain drain

There is evidence today for the theory that an inhospitable macroeconomic climate will drive some of the more valuable labour resources out of a nation’s economy. The International Herald Tribune reports on the exodus of young graduates from Greece, in search of employment opportunities elsewhere. A number of reasons are given; a deepening recession, a job market already crippled by an entrenched culture of cronyism, a national debt which is larger than Greece’s gross domestic product suggesting that years of austerity budgets lie ahead and finally a string of political corruption scandals has left many young Greeks disillusioned about the future.

A survey published last month shows that 7 out of 10 Greek college graduates want to work abroad, and four in 10 are actively pursuing that end. Unemployment among 15- to 24-year-olds was 29.8 percent in June, compared with about 20 percent across the European Union.

In an effort to keep their highly-educated resources within the Greek economy, the government has tried to persuade employers to hire young people by lowering the monthly minimum wage to 590 euros from 700 euros and by offering to subsidize the social security contributions of employers for new workers. It would be an interesting class exercise to brainstorm the wider implications of that.

Further analysis in the article raises a number of issues which will resonate with school students who are preparing their UCAS applications, and wondering if it is all worth it. To quote from the article,
“Some experts say the Greek labour market cannot accommodate all the country’s college graduates anyway.

Ilias Kikilias, who heads the state-run employment agency, said there were too many college graduates adrift in a sluggish economy that was generating too few jobs. Data from the agency, known as the O.A.E.D., shows that 600,000 college graduates entered the labour market over the last 15 years but only 250,000 jobs were created, most in the bloated state sector. Even this pool of potential jobs is dwindling because the government has frozen hiring and businesses are scaling back or moving some operations out of the country.”

There is much here that could stimulate a very interesting classroom discussion!