Greece faces severe labor shortage as foreign workers leave and vacancies rise

A new study by the Centre for Planning and Economic Research (KEP) warns that Greece’s labour market is tightening sharply. By the end of 2025 the country is projected to have more than 31,000 unfilled jobs, with the biggest gaps in education, health‑social care, transport and trade. The study attributes the strain largely to a sharp decline in the foreign‑born workforce: within a year the number of foreign residents fell by 140,500, a 51 % drop, reducing their share in the labour force to about one‑third of its previous level. While total employment grew, the increase came exclusively from Greek workers, whose numbers rose by 126,600, whereas legally employed foreign workers fell by 53,000 (‑37 %).

The labour shortage feeds into broader concerns about entrenched interests in the Greek economy. Analyses note that a small, well‑organized group of unions and industry leaders can stall reforms, using their capacity to disrupt services and pressure politicians. Such capture has historically amplified the cost of change, leaving ordinary citizens to bear the burden while protecting the income of a few. The convergence of a shrinking foreign workforce and powerful vested groups raises questions about the country’s ability to implement needed economic reforms.