The unemployment crisis that plague Europe is the biggest threat to the social fabric of its moribund economies, says Telegraph in a recent article published, referring to Greece as an example.

Long-term unemployment is a dangerous development that keeps economists awake at night, Telegraph reports adding that in Europe about 15pc of unemployed people have not had a job for more than four years leading
This gradual loss in skills needed to re-enter the workforce, leads to a phenomenon economists have named as “hysteresis”, when periods of prolonged unemployment can become permanent.

The article mentions Greece as an example or hysteresis commenting that according to Eurostat figures, Greece seems to have succumbed to hysteresis, with only a pitiful 8.6pc of unemployed Greeks having found work in the second quarter of the year, compared to three months prior.

As Telegraph says ‘Hysteresis’ is a sclerotic process that takes hold in economies in a state of perma-recession and Greece is arguably the best example since it has suffered a downturn of greater magnitude than the US Great Depression of the 1930s.