The Greek economy is facing a unique challenge: a shrinking labor force and a growing number of job vacancies. This paradoxical situation is primarily due to the departure of foreign workers, who have traditionally filled essential roles in various sectors. The Center of Planning and Economic Research (KEPE) study highlights a concerning trend: the number of job vacancies in Greece has surged to over 31,000 by the end of 2025, with the most significant shortages in education, healthcare, manufacturing, and retail.
What makes this issue even more intriguing is the demographic context. The country's population has decreased by 12,700 in a year, and this decline is almost entirely attributed to the mass exodus of foreigners. In 2008, before the financial crisis, foreigners constituted 6% of the population, 8.2% of the workforce, and 8.2% of the employed. Fast forward to the present, and these percentages have plummeted to 2.2%, 2.9%, and 2.8%, respectively, while the total number of foreigners has decreased by a staggering 65%.
This foreign worker exodus is having a direct impact on the labor market. The foreign labor force has shrunk by 74,400 people in a year, dropping to just 97,500, while legally employed aliens have decreased by 53,000, or 37%. In contrast, the total employment increase of 73,700 people is entirely due to domestic workers, which has risen by 126,600. This means that the rise in employment over the last year is solely due to Greek workers, whose employment has prevented an overall decline.
This situation raises several questions. Firstly, what are the implications for the Greek economy's growth and competitiveness? Secondly, how can the government and businesses address this labor shortage while attracting and retaining foreign talent? The challenge is twofold: not only do they need to create jobs, but they also need to ensure that these jobs are filled by a shrinking pool of workers. This requires innovative solutions, such as retraining programs, improved working conditions, and incentives to encourage foreign workers to stay or return.
In my opinion, this issue is a wake-up call for Greece to reevaluate its immigration policies and its approach to attracting and integrating foreign workers. The country's future economic success may depend on its ability to adapt to this changing demographic landscape and find creative ways to harness the skills and expertise of a diverse workforce.
