Greece faces high graduate unemployment and stagnant real wages

Greece continues to struggle with the highest unemployment rate among young graduates in Europe. This issue is attributed to a long-standing mismatch between the expansion of higher education and the actual needs of the labor market, a trend that has persisted since approximately 2006.

While the overall national unemployment rate has declined to 7.9% from 8.6% a year prior, economic data from IOVE indicates that improvements in employment indicators are not translating into increased purchasing power. Although nominal wages rose by 4.4% in the second quarter of 2026, high inflation—measured at 4.2%—has left real wage growth at a marginal 0.2%.

Furthermore, the rate of new job creation has slowed for three consecutive quarters. The reduction in total unemployment is partly attributed to changes in the number of economically active citizens rather than solely through the creation of new positions.