According to data from the latest edition of The Greek Economy, published by the Foundation for Economic and Industrial Research (IOBE), the country has yet to close the gap with its European peers, despite notable gains since the early 2000s.
Between 2002 and 2024, Greece’s labour force participation rate increased by a cumulative 6.5 percentage points. Even so, in 2024 only 70.5% of the population aged 15 to 64 was active in the labour market—its highest level in decades, but still well below the EU average of 75.3%. The remaining gap of nearly five percentage points highlights how limited convergence has been. Greece currently ranks third from the bottom among EU member states, ahead of only Italy and Romania, while countries such as the Netherlands and Sweden report participation rates above 83%.
A closer look at the data reveals pronounced disparities across demographic and social groups. Women in Greece remain significantly less likely to participate in the labour market than their European counterparts, with the gap approaching eight percentage points, despite substantial progress over the past twenty years. Even more striking is the situation of young people aged 15 to 24, whose participation rate falls 17.2 percentage points below the EU average, underscoring persistent obstacles to labour market entry and weak links between education and employment.
Developments among older workers present a more complex picture. In the 50–64 age group, Greece remains below the European average but has recorded faster increases in participation since 2024. This trend is closely linked to policy changes, notably the abolition of pension reductions for working retirees, which encouraged more older individuals—particularly women—to remain economically active. However, the rise also raises questions about whether it reflects improved job opportunities or growing financial pressure that leaves many with little choice but to keep working.
Significant inequalities also persist across education levels and regions. Labour market participation is highest among those with tertiary education and residents of major urban centres, while people living in smaller towns, suburban areas and rural regions continue to lag far behind the EU average. This pattern suggests that employment growth in Greece remains uneven, benefiting specific social and geographic groups rather than being broadly shared across the population.
