 1. World economic crisis  1.1. World crisis and Greek crisis  World crisis and unemployment  2. Causes of unemployment  2.1. Negative effects on unemployment  2.2. Positive effects  3. Future prospects  4. Conclusion

 The present global economic crisis is the worst the world has experienced since the Great Depression.  The failure of two Bear Stearns Hedge funds in the middle of 2007 was devastating for the world economy.  The crisis affected practically every country of the world, as well as Greece.

 Debt levels are so high, Greek economies are falling  Solution: The Greek government asks massive loans from the European Union and IMF.  Poor economic growth  unable to repay the loans  Eurozone extends the deadline to 2 years (2016) in order to reduce the deficit.  Failure to repay the debt  small economies will collapse  Greece returns to drachma  Harder to cover its debt.

 Unemployment stems from plenty of factors  Unemployment is closely related to deficient demand.  When consumers demand slows → Less output is needed  Βusinesses employ less workers

 The technological progress leads to unemployment → Fewer workers needs to product the same thing  Old, unspecialized workers are temporary unemployed.  Unemployment stems from → Real wages increase  Unemployment increases when real wages > the market clearing level

ILO estimates : There were about 178 million unemployed in 2007 and now there are 212 million unemployed people Long-term unemployment : These people will have difficult time finding work and some may never find work

New Careers : A redundant worker may find the time to fulfill a dream of starting his own business Life Lesson : The unemployed learn what is important in life, how to live on less money → they will be stronger Emigration : Higher wages. Workers have the opportunity to experience different culture and language

 Among developed countries → reduced the unemployment rate  The high unemployment in Europe will remain for 2 more years. (WESP)  In the Euro area, the unemployment rate → stabilize in 2014 an average annual rate 12.1 % → come down to 11.8% in  In developing countries → extremely high unemployment( North Africa, Western Asia)

 For the first time in two years there were upgraded forecasts for global growth( IMF)  For 2014 → growth of 3.7 % → for % for the world economy  Growth in 2014 → U.S. 2.8 %, Eurozone 1%, China 7.5%, Britain 2.4%  Greece, southern countries → recovery will be low

 Unemployment is well connected with crisis.  This event influences the demand of products, the individual choices and the investments of businesses.  Even though global economy will develop, recovery will take more time for the countries which have a debt or fiscal problems.

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