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UPDATE 1-Greek August jobless inches up, eased by tourism

Published 11/12/2008, 04:32 AM
Updated 11/12/2008, 04:34 AM

(Adds details, economists comment)

By George Hatzidakis

ATHENS, Nov 12 (Reuters) - Greek unemployment inched up to 7.1 percent in August as seasonal jobs from tourism cushioned the impact of an economic slowdown, but economists warned that jobless figures were set to rise more sharply.

Greece's National Statistics Service (NSS) said on its Web site that employment rose marginally month-on-month from July's 7.0 percent and fell year-on-year from 7.6 percent in August 2007. The figures are not seasonally adjusted.

"Greece's job market for August was supported mainly by the tourism sector for the main summer months," said Nicholas Magginas, economist at National Bank.

"The numbers were supported mainly by the creation of seasonal jobs in the tourism and retail sectors."

Greece, which accounts for about 2.5 percent of the euro zone economy, has so far avoided the immediate impact of the credit crunch but is starting to feel the pinch of a slowing global economy.

"In the following months we expect a rise in unemployment, reflecting a slowing economy," Magginas said.

Greek economic growth decelerated to an annual 3.5 percent pace in the second quarter, from 3.6 percent in the first.

The country's jobless rate had peaked at 11.7 percent in January 2004, when Greece changed the way it measures unemployment.

NSS said there were about 354,727 people officially unemployed in August, while an estimated 4.6 million had jobs.

Unemployment continued to affect women more than men. In August, unemployment in the female population was 11.0 percent compared with 4.5 percent for men. It was much higher for people in the 15-24 age group, at 19.2 percent. (Additional reporting by Renee Maltezou; editing by Patrick Graham)

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