Comprehensive overview of the Labor Market in Greece
Comprehensive overview of the Labor Market in Greece
  Economy  |  Greece  |  Analysis

Comprehensive overview of the Labor Market in Greece

In service sectors such as tourism, hospitality, and retail, the concept of productivity is primarily associated with physical presence.
Share Copy Link
RE+D magazine
08.07.2025

The Labour Institute of the General Confederation of Greek Workers (INE/GSEE) has published the third in a series of new policy papers, presenting empirical findings from its first nationwide survey on job quality in Greece.

The objective of this research is to examine key dimensions of job quality in the Greek private sector, focusing on workers’ own experiences and perceptions. Areas explored include the physical working environment, work intensity, time management, job insecurity, and other related aspects that shape the day-to-day realities of employment.

This report specifically addresses:

  • The social environment at work, with a focus on incidents of sexual harassment and bullying;
  • The intensity of job demands placed on employees; and
  • Opportunities for skill development and professional advancement, particularly through lifelong learning, alongside the issue of skills-job mismatch.

According to the Labour Institute of the General Confederation of Greek Workers (INE-GSEE), the findings point to deep structural imbalances in the Greek economy. These include the lack of coherent strategies for human capital development and a production model that remains entrenched in low-knowledge, low-innovation activities.

As INE-GSEE observes, Greek entrepreneurship—especially among small and medium-sized enterprises—is largely driven by short-term thinking. Long-term development strategies, such as investment in employee education and training, are rarely prioritized. Education is frequently treated as a cost rather than as a strategic investment, and a culture of lifelong learning is notably absent.

In many service sectors (such as tourism, food service, and retail), productivity continues to be measured primarily by physical presence and basic operational functionality, rather than expertise, innovation, or qualitative performance. Compounding the problem, a large proportion of employees report that their educational and professional qualifications exceed the requirements of their current roles, highlighting a persistent skills mismatch in the labor market.

This mismatch is not incidental, but a result of the structural limitations of the Greek economy. The low absorption of highly skilled workers stems from the scarcity of knowledge-intensive and technologically advanced job opportunities. Job creation remains concentrated in sectors requiring minimal specialization, which limits the potential of the workforce. The absence of a strong industrial base and technologically sophisticated production further deepens the problem.

INE-GSEE warns that businesses are not investing in innovative models or the qualitative upgrading of products and services. Consequently, many jobs remain cognitively undemanding, leading to a devaluation of employees' skills and a growing sense of professional stagnation.

This situation has far-reaching consequences, not only for the economy and development but also for workers’ mental health and overall well-being. The lack of skill recognition leads to low motivation, reduced job satisfaction, and feelings of underutilization. These, in turn, fuel job insecurity, dissatisfaction, and thoughts of leaving one’s job—or even the country altogether.

Addressing these challenges requires a comprehensive transformation of Greece’s development model, including targeted sectoral investments in innovation and the creation of high value-added employment opportunities. These changes are necessary to unlock the full potential of the country’s educational and human capital.

In this context, Collective Labour Agreements can serve as powerful tools to:

  • Enhance the quality of employment, and
  • Promote vocational education and continuous training, enabling workers to develop and apply their skills meaningfully.