THE LABOR MARKET IN CRETE AND ITS PROSPECTS
Crete, at the most southern point of both the country and Europe, gazes with optimism
at the new millenium. Its course of progress during the last two decades shows that
the island of Psyloritis can play a leading role in the economic developments. During
these years, the economy of this large and self-sufficient island developed further than
the rest of the country. As a consequence, it has now exceeded the GNP's average
growth rate, while the relevant prospects look even more auspicious. The native
population, which in 1998 numbers approximately 540.000 people, increases at a
higher rate than the national average, although with a slight decline at its growth rate.
The island's economically active population increases steadily (211.185 people in
1991, 231.000 in 1996 and 244.000 in 1998).
Part of this increase is combined with the increased presence of financial immigrants
who are employed mainly in agriculture, in constructions and in subsidiary
occupations. Our estimations, which are in agreement with the international ones,
show that the untaxed financial activities in our country reach the level of 30%. If one
accepts this fact, then this kind of economical activity in Crete must exceed the
proportion of 35%. This fact can be attributed to the relatively large number of
financial immigrants, the small size of businesses in average, as well as the
traditionally social status of tolerance all around the island. Consequently, the total as
well as the per capita regional income in Crete is increased by the above-mentioned
percentage. In addition, the compound index of productive infrastructure and human
development, with the inclusion of the number of lyceum students per classroom, of
hospital beds and telephone numbers per 1.000 inhabitants, as well as the kilometers
of provincial road nets per square kilometer, lies above the national average.
These compound aforementioned positive inferences explain the fact that Crete shows
the lower levels of unemployment in the whole country. According to surveys on
human resources, carried out by the National Statistical Service of Greece, the
percentages of unemployment in Crete show the following course in relation to the
ones of the entire country (Tables 1 and 2).
Table 1
Development of the percentages of unemployment for the entire country and
Crete between 1993-98
YEAR
ENTIRE COUNTRY
CRETE
1993
9,7
4,2
1994
9,6
4,3
1995
10,0
4,8
1996
10,3
3,8
1997
10,3
4,6
1998
10,8
7,2
*Source: Sampling research of the Work Force of NSSE in
1993-97 and at the 2nd trimester of 1998.
*The relevant evidences regard the 2nd trimester of 1998
Table 2
Population of 15 years old and above per District,
occupation and unemployment
Areas
Population
Total
Occupied
Total
Unemployed in
percentage per
work force
Non
work
force
Entire country
8.702,2
4.445,7
3.967,2
478,5
10,8
4.274,5
East Macedonia
425,5
242,5
220,8
21,8
9,0
209,9
and Trace
1.482,2
737,0
660,9
76,1
10,3
745,2
Central
Macedonia
226,9
111,6
98,9
12,7
11,4
115,3
252,5
117,0
101,2
15,9
13,6
135,5
151,0
79,4
76,4
3,1
3,9
71,5
532,1
266,6
237,4
29,2
11,0
265,5
429,5
208,6
181,8
26,8
12,8
220,9
3.326,4
1.700,6
1.493,4
207,2
12,2
1.625,8
West Macedonia
Epirus
Ionian Islands
West Greece
Main Greece
446,2
227,1
208,6
18,5
8,1
219,1
Attica
153,0
67,6
60,3
7,4
10,9
85,4
Peloponnese
205,7
106,5
99,7
6,8
6,4
99,2
North Aegean
451,5
262,6
243,8
18,9
7,2
188,9
South Aegean
Crete
*Source: NSSE, Sampling research of work force, 2nd trimester
of 1998 (in thousands of people)
For the year 1998, the data refer to the second trimester of the year, i.e. months April,
May and June, which only in part represent the summer season that shows a highly
increased seasonal employment rate, especially in intensively tourist oriented regions,
such as Crete. This influence demonstrates most eloquently the particularly important
seasonal employment pattern that characterizes the island's financial activity. This fact
is connected with the increased presence of tourism as well as the existence of
traditionally seasonal agriculture, such as olive and grape cultivation.
In the rural areas where a large part of the population lives – one can notice a large
dispersion of small villages of 200-250 inhabitants –in its turn creates an increased
need for infrastructure, especially as far as roads, water-supply systems and drainage
are concerned. This same problem is crucial in mountainous and secluded areas. In
the large cities, especially Heraclion, besides the problems in water supply and
drainage systems – which are lately taken care of thanks to proper action – another
serious and hardly irreversible problem is that of the urban construction without
planning. There is a hope that the proper enforcement of order, as well as the display
of the necessary sensitivity and sense of good taste, will work towards the elimination
of this particular problem, at least form now on. This is something that the inhabitants
of the city must all agree upon in the first place.
Important improvements and expansions, concerning airports and ports, are on their
way, while the parts in Rethymno and Agios Nicolaos are bound to be completed
within the year 2000. However, the sea tourism in Crete has not attracted the business
initiative until now, mainly because the island's geographical position is remote in
relation to the usual destinations of tourist boats.
It should be particularly noted that there is an increased urban and economical
concentration at the northern part of the island. Despite recent interventions many
parts of the road net are in poor condition and far from the condition of the national
road net. The south road net of the island still remains uncompleted, for which both
regional oppositions and concentration on other priorities are to blame. The inequality
in the development of Crete in favor of its northern part results in further positive
prospects of employment in these regions. However, in the long term it is only natural
that, the already apparent, satiation will occur, while this does not apply to the
southern regions. Their development according to the modern sensitivity and concerns
about environmental and urban planning require, above all, the proper political will
and coordination towards materialization.
The agricultural productivity of the island is rich and covers all the needs of the local
market, while a part of it is exported mainly in Athens. As it was noted above, the
traditional olive and grape growing cultivation is of special importance. As far as the
olive production is concerned, the State should persist in supporting it, under auspices
of the European Union. It is especially so, if one considers the fact that olive oil from
Crete has gained international acclaim for its many qualities as part of a healthy and
modern diet. This of course will lead to internationally competitive prices and mass
production.
The greenhouse cultivation has been greatly developed in the island. It constitutes
50% of the national total. Although, this intensive cultivation occupies many
foreigner workers, it can offer long-term work opportunities for properly qualified
work force from any educational level. The climate offers also many opportunities for
horticulture as well as ecological cultivation, which is in great demand worldwide,
especially recently since dioxins made their appearance. So, every concentration
connected with agriculture has positive perspectives under the condition that there is
satisfactory and developing education and concentration in modern and alternative
culture.
Fishery never had and will never have an important role in Crete because the Cretans
traditionally do not occupy themselves with such activities. The founding of the
Institute for the sea research in Crete does not guarantee the sought after creation of
aquiculture because there is no interest in it and also because there are very few
adequate sea patches. In the foreseeable future there are no auspicious prospects for
employment in fishery. The animal breeding shows potentiality and satisfactory
employment prospects especially in mountainous Crete. The specific flora and climate
of the island are advantageous for apiaries, although this specific activity has not yet
attracted the business initiative.
The industrial sector in Crete traditionally presents limited development. It is based
mainly on small or medium sized production units and certain large joined business,
some of which have problems and malfunctions. In general, this sector is oriented to
the processing of agricultural products, food and beverage, as well as to sectors of
plastic and construction materials. The production of constructing materials is
particularly connected with the increased, although often without plan, construction
activities in the island. The function of industrial zone in Heraclion and of small
business industrial zone in Chania is not sufficient for the coordinated and quick
productive development of the District. In general, the balance of demand and supply
in industrial processing will remain stable in the near future, while the construction
activities will be moderately developed. Positive prospects lie ahead for
mechanological, electrological, electronical and generally technological professions
under the condition that there will be constant development and adaptation to the
ever-changing and fast growing technology.
As Crete being an island, there are large navigational units, which take advantage of
their monopoly, thus gaining large profits, although at the same time they result in the
augmentation of travelling costs for persons and merchandise. Despite the negative
consequences for the total competitively of the island, there are remarkable prospects
in the local labor market, concerning marine and other transportations.
Until recently the energy deficit was a crucial problem, as the island depends upon the
continental Greece for its energy supplies. In order to face this problem, the District
Administration is working decisively towards the creation of a new Electrical Power
Station with 150MW power, in combination with the use of renewed energy sources.
At the same time, two privately invested aeolian energy parks, as well as one
photovoltaic park already function. There are also positive prospects of employment
for expert personnel on the energy sector and the multiple work positions that will be
created.
Table 3
Analysis of funds per sector
Class of Intervention
Mediterranean
Integrated
Programs
&
Regional
Operational
Programs 198393
Regional
Operational
Programs
Primary
27,0
Process
National
Division,
Initiatives –
Collective
Total
Adjudication
of Project/1
(Billion
dr.)
1994-99
Coherence
Treasury
1994-99
31,9
41,8
1,5
102,0
31,8
11,7
14,4
0,1
58,1
Tourism-Culture
18,6
20,8
11,5
-
50,8
Human Potential Work Force
18,5
22,1
6,9
8,2
47,5
Research-Technology
4,5
3,3
17,3
4,3
29,4
Health-Welfare
3,3
16,2
4,0
1,6
25,8
Environment-Natural Resources
6,0
9,7
6,6
-
22,3
Urban road net
11,2
12,7
16,9
1,8
42,6
Transportations
30,0
48,5
28,9
9,6
117,0
*Source: District Development Plan 2000-2006 for Crete
From the studying of evidences for the human potential work force, a slight shortage
in the numbers of graduates from higher and middle education is ascertained, in
relation to the national average. Still this fact, during the current period, rather
lightens than burdens the pressures on the unemployment front, if it is considered that
Greece is the only country in Europe where lyceum and university graduates present
higher unemployment percentages than those of secondary school. From the one who
signs the present essay, it has been repeatedly emphasized in researches, reports and
articles that the Greek educational system, as it is directed on long-standing and nonelastic ideas, produces unemployed people. And that this unfortunate reality – so long
as no immediate and grave interventions are done – is responsible for more than half
of the total percentage of unemployment in our country, as well as for the huge
percentages of unemployment among young people. The same ascertainment
likewise, leads to an unjustified waste of economical and educational funds, to a
decreased competitiveness of economy, as well as to creation of expectations of
unachieved prospects for the youth, with whichever unpleasant consequences. For this
reason, the occupation of graduates, in the entire country but also particularly in
Crete, at other sectors than the ones they have studied ascent to unprecedented
international standards and is on the highest level compared to the other statemembers of European Union.
The important presence of new Universities and TEI (Technological Education
Institutes) in Crete, along with considerable research centers – in spite of all the recent
problems of administrative and managing substance that have been presented in
certain circumstances – constitutes a basic vault for educational and researching
prospects and relevant personnel employment. Besides, the indicators of research
activity in the District of Crete appear to be quite higher than most of the other
districts of the country. The important national and European Community funds that
are directed for the same sector in Crete, prejudge an equivalent ascending course in
the future with accordingly restrained positive consequences for employment (see
Table 3). Particularly, the presence of research centers on peak technologies and
specifically in computer science, telematic and telecommunications should be
emphasized.
The balance of professions in sectors that are connected with computer science is very
positive, at both abroad and our country, under the condition that the employees in
relevant sectors constantly follow and are trained at the rapidly developing and
upgrading technology. Computer science, telematic, telecommunications,
automations, graphic design with contemporary electronic means constitute the "labor
avenues" of today and tomorrow. This fact of course concerns pioneer regions like
Crete.
Particularly positive are the prospects of economical, administrative and commercial
professions. As it has become evident from pilot researches that has taken place
recently for the labor market in Crete, the balance of professions of this big category
appears to be slightly more positive than from what it stands for the entire country.
Because of the use of new technology in the banking system, of the intense
competition and of the equivalent international developments, the prospects for
banking and insurance professions are negative. The same stands for stock market
professions due to the oversupply of labor in the last years, in a field like the Stock
Market that glows but is not gold.
Negative to very negative are the prospects of labor market for educational guidelines
of social-anthropological, physic, mathematical and law sciences, as it also stands for
the entire country. Very negative are the prospects, among others, for philologists,
theologists, archeologists, anthropologists, ethnologists, for graduates of political
sciences and public administration, due to increased supply and decreased demand in
those fields. It is obvious that graduates of the above mentioned fields can pursue
employment at other fields and especially at those connected with computer science,
as well as foreign language teaching. And this happens, because the knowledge of
foreign languages and particularly English, today constitutes a necessary asset mainly
for middle and higher levels of labor market and specially for tourism.
It is also pinpointed, the special sensitivity and emphasis (see Table 4) that
characterizes the current sensible leadership of the District, between others, on
subjects of environment. This fact involves positive developments at relative
professions. The new concentrations on high educational levels, quality control
professions and environmental protection, as well as professions like carpentry, glass
manufacturing and ceramic, show a positive prospect.
Table 4
The development of the Gross District Product
(per sector %)
1981
1991
2001(prediction)
Primary Sector
33,2
28,4
22
Secondary Sector
20,4
16,3
12
Tertiary Sector
46,4
55,3
66
*Source: Crete District
Particularly satisfying is the health infrastructure in the District of Crete, with a higher
than the national average index of beds per 1000 inhabitants, with comparatively high
rank Hospitals and 103 regional community clinics and first rank health units of ISI
(Institution of Social Insurance). The prospects of balance of supply and demand for
paramedical professions are positive while they are intensely negative for doctors,
dentists and pharmacists due to the oversupply of labor in those professions at a
national level. Due to the demographic aging of population, as also to the increased
obligations of a modern just-governing State towards elderly people and people with
special Needs, the prospects of professions of psychology and well fare are outlined
just about positive. The same stands for professions of housework and those of
security service.
Notable is the case of fine and applied arts, as also of information and mass
communication professions, which present a neutral to negative prospect, in the entire
country. Slightly better must be the situation in those case in Crete, of course with
vivid differences in proportion with the subcategory, the specialties and the districts.
The structure of the three grand sectors of economy (primary, secondary, tertiary),
follow as much the international as the national trends. The tertiary sector is
overinflated, which in 2001 is predicted to represent the 66% of the whole (see Table
4). Naturally, the biggest portion is occupied from tourism, which is the most
powerfully developing sector, with a share in the District Product from 8% in 1982 to
20,4% in 1995 and with further increasing trends. It is obvious that the prospects of
employment in travel and tourism industry professions represent the biggest hope for
the creation of new work positions. Equivalent positive prospects present sport,
entertainment and nautical professions.
The compulsory turn to quality tourism imposes an important upgrading of tourism
training and re-education, in all levels and concentrations of tourism education. The
most recent developments in the same field indicate a conversion from massive
tourism and grand hotel units, to middle and small units that offer high quality
services combined with architectural elegance and hospitality, in accordance with the
local traditions. The promotion of alternative activities – like tourism conventions, the
creation of golf courts, centers of alternative therapies and hydrotherapy, the elevation
of antiquities and historical features of cities, as well as the organization of cultural
demonstrations – constitute positive steps for tomorrow. To the same directions that
appertain to equivalent concentrations of the work force, It is only natural to orient an
important part of the labor demand in the immediate future.
In general, what come first nowadays is the appropriate training and retraining of the
work force towards directions and concentrations that are in demand in the labor
market. The need of turn of the educational system towards new directions, the
emphasis on high technology and particularly on computer science and the
compulsory knowledge of at least one foreign language, constitute the appropriate
resources for gaining the future of labor. Of a remarkable as much as competitive
future, that particularly in the case of Crete is outlined optimistically. These
ascertainments, of course, do not indicate that young people should neglect their
cultural and humanitarian background, which is a necessary provision for the soul.
For good knowledge of contemporary technology, anything but enough is for the
integration of the human persona, particularly for the persona of the Cretans that
single out, above all, for their humanity, their aliveness, their wisdom, their
hospitality and for their constant relationship with their roots.