The European Commission’s report on Greece highlights the image of an economy that is growing but has not closed the gap with Europe in a critical area: productivity.
This is an issue that business leaders have highlighted, with a notable example being Spiros Theodoropoulos, who recently pointed out that “productivity is not a technical indicator. It is a national goal. And it has nothing to do with intensifying labor. It is an economy’s ability to produce more value with the same resources.”
According to the president of the Hellenic Federation of Enterprises (SEV), “in recent years, Greece has increased its GDP mainly because employment has risen and unemployment has fallen. But that is no longer enough. With demographic pressure intensifying and the scope for further employment growth limited, productivity is becoming the key driver of growth, better wages, and meaningful convergence with Europe.”
The Commission’s report notes that labor productivity in Greece remains at just 54.6% of the EU average, although it has recently begun to recover slightly. At the same time, Greece recorded the highest number of working hours per employee in the entire EU.
The Commission attributes the low productivity to a mix of structural factors: the large share of low-value-added sectors in the economy, persistent skill gaps, the brain drain, and poor working conditions.
Lifelong learning
On the lifelong learning front, the picture remains concerning. Cedefop’s Skills Index for 2024 ranked Greece 30th out of 31 countries in terms of skills matching, 28th in terms of skills development, and 27th in terms of skills activation. Adult participation in learning remains consistently low, widening the gaps—including in digital skills.
It is no coincidence that, according to data cited by the Commission, 80% of companies cite a lack of skilled personnel as a barrier to investment.
The missing half: Women and vulnerable groups
The failure to utilize the available labor force is reflected in the gender employment gap, which remains one of the highest in the EU: 17.4 percentage points at the end of 2025, compared to 9.6 points in the Union. Women are more likely to be long-term unemployed or outside the labor force—partly due to limited care services for preschool-aged children and other dependents.
Undeclared work and low wages
Regarding the quality of employment, the report identifies a high prevalence of undeclared and under-declared work—a problem that the digital work card aims to address. The dominance of tourism and other services means that Greece has one of the highest rates of low-wage workers in the EU and a relatively high share of informal forms of employment, such as seasonal work.
The report even notes that nearly half of workers on temporary contracts do not wish to work under this arrangement.
Hovering over all of this is the demographic threat. According to the report, the working-age population is projected to decline by about one-third by 2070. Labor shortages are already evident—particularly in tourism and construction—and require an expansion of the labor force through targeted activation programs, better access to care facilities, and flexible forms of work.
*See the Commission’s report on Greece in the right-hand column “Related Documents.”