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UPDATE 1-Greek April unemployment posts record jump to 9.4%

Published 07/14/2009, 05:26 AM
Updated 07/14/2009, 05:40 AM

* Unemployment rises to 9.4 percent in April

* Record year-on-year advance

* Youth unemployment at 25.2 percent

(Adds economist quote, background)

ATHENS, July 14 (Reuters) - Greece's April unemployment rate posted its biggest annual jump on record after a slump in tourism and construction, according to data published by the country's statistics service (NSS) on Tuesday.

The jobless rate, which is not adjusted for seasonal factors, climbed to 9.4 percent from 7.7 percent in the same month of 2008. Unemployment was 9.2 percent in March.

"The main reason for the increase of unemployment in April was that many hotels that used to open on April 1 did not open at all, or opened later. The second reason is the decline in building activity," NSS chief Manolis Kontopyrakis told Reuters.

After a decade of rampant economic growth, Greece's economy is feeling the impact of the global downturn.

About 19,000 jobs in tourism were lost in the first half of the year after a 9.6 percent drop in visitor numbers, the tourism industry association SETE said last week.

Major Greek companies, such as cooler maker Frigoglass and Emporiki Bank , have announced job cuts to cope with the downturn.

Others, like aluminium products maker Alumil , are cutting working hours and reducing pay.

"We expect worsening labour conditions in the last quarter of the year, following the peak of the tourism season," said Platon Monokroussos, an economist with EFG Eurobank. (Reporting by Harry Papachristou; Editing by Mike Peacock)

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