Budget plan 2022: Reduction of unemployment by two units and surplus of 1 billion euros

Reduction in unemployment by around two percentage points with a parallel increase in employment of almost three units and a surplus of one billion euros in insurance funds, include forecasts of the new state budget for 2022.

These forecasts are presented following the growth and measures announced by the government to increase the incomes of employees and support businesses.

More specifically, employment is expected to increase by 2.7 points and unemployment to drop to 14.3% from 16% this year.

The economic chain, which is reflected in the state budget and leads to increased employment and income of insurance funds, includes:

  • The National Youth Action Plan, by encouraging young people to enter the labor market (“first seal”).
  • The increase in real private consumption, which will be based on the strengthening of employment, with 80.9% of new jobs being linked to salaried jobs, but also to the increase in the nominal average wage of 1.1%, which is expected to push employees 4.1% above the 2021 level.
  • The three percentage point reduction in employee insurance contributions and the suspension of payment of the Special Solidarity Contribution.
  • Support for the unemployed and seasonal workers.
  • Support for vulnerable social groups, through the increase in allowances paid by OPEC, the increase in the heating allowance, as well as the payment of a double tranche of the guaranteed minimum income in December.
  • The above, despite still high pension spending and retroactively, is expected to lead to an increase in insurance fund revenue to 44.8 billion euros and a surplus of at least one billion euros over budgeted spending. (43.7 billion euros).

Dimitris Kostakos

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