The UN’s International Labour Organisation (ILO) has warned of a “catastrophic” rise in unemployment, especially among the young, if debt-wracked Greece were to leave the eurozone or if the bloc were to split.
“It would be a catastrophe for the European youth,” Ekkehard Ernst, a senior economist at the body told the German daily Sueddeutsche Zeitung.
Unemployment in crisis-hit Spain would rise to 27.7pc by 2014, the ILO economist calculated, with jobless rates among 15-24 year-olds rising to 51.3pc. Portugal would also suffer a crippling rise in unemployment, AFP reported.
In Germany, Europe’s top economy, which is currently enjoying unemployment rates near record lows, close to one-in-10 would be without a job by 2014.
“The average unemployment rate in the 17 eurozone member states would rise to 13pc,” Mr Ernst told the paper.