Greece is facing increasing labor shortages and a tightening job market post-pandemic, making it difficult for businesses to find staff.
These challenges were the central topic at the 2nd Annual OECD Crete Centre Conference on Population Dynamics.
Key findings from OECD study
OECD Economist Cem Özgüzel presented a study on skill shortages and mismatches in the Greek market. The study aims to understand the causes of these shortages, examine the role of migration, and highlight policy options to balance labor supply and demand.
- Business Difficulty: 71% of Greek businesses report difficulty finding personnel. While lower than the OECD average, this rate has risen rapidly since 2020.
- Immigrant Population: The migrant population in Greece (11%) is below the OECD average (15%).
- Skill Mismatch: Most migrants have a lower educational attainment than native-born citizens (26% vs. 42%) and primarily work in low-skilled jobs (e.g., agriculture, construction, services). Crucially, nearly half (45%) are overqualified for the jobs they hold.
Policy recommendations to address Greece’s labor shortages
Experts agreed that increasing migration alone is insufficient; effective integration policies are essential.
Özgüzel stressed that policy priority must be given to better matching skills to market needs, faster recognition of professional qualifications, and leveraging migrant talent to sustainably address labor deficits.
OECD Economist Lisa Andersson proposed more targeted management of migration, involving the mapping of specific national needs and connecting them with countries of origin.
Professor Alessandra Venturini highlighted that migration must be viewed not just through a humanitarian lens but as a developmental strategy. She emphasized that substantive integration—including language training and cultural understanding—is critical for social cohesion, arguing that “assimilation does not work.”
Özgüzel also noted that Greece’s female labor participation rate is relatively low (60%, compared to 80% for men), suggesting significant room to boost employment, particularly among immigrant women, to combat demographic challenges.
The Spanish example
Maite Alguacil, scientific advisor to the Spanish Ministry of Inclusion, discussed the Spanish experience, where foreigners account for 20% of the population.
Spain recently enacted reforms that legalized thousands of existing migrants and facilitated social integration. She stressed that Spain, facing low birth rates, views migration as a critical factor for the sustainability of its social security system and overall social cohesion.
The conference was held at the Centre of Mediterranean Architecture in Chania, organized by the OECD Crete Centre for Population Dynamics, in collaboration with the Municipality of Chania and the Delphi Economic Forum.
