Greece labor market shows declining unemployment amid structural challenges

The Greek labor market shows a complex landscape characterized by declining overall unemployment figures alongside significant structural challenges. According to data from the Public Employment Service (DYPA), registered unemployed individuals decreased by 10.1% annually, reaching 715,328 in July. This represents a substantial improvement compared to pre-pandemic levels in 2019.

However, specific demographics continue to face severe obstacles. OECD research highlights that young people and women remain the most vulnerable groups. In 2024, the unemployment rate for graduates aged 25-34 in Greece reached 12.3%, the highest among OECD nations. Furthermore, 43% of workers under the age of 30 are classified as low-wage earners, a figure double the OECD average.

Structural issues such as the mismatch between educational training and market needs, high seasonality in the tourism sector, and low wages hinder economic independence. While seasonal employment in tourism contributes to the reduction of unemployment numbers, it also leads to monthly fluctuations in employment balances, particularly following the expiration of seasonal contracts.