Three structural barriers continue to keep thousands of women out of Greece’s workforce, according to a new study by the International Monetary Fund, underscoring a growing concern for an economy already grappling with labor shortages and demographic decline.
The IMF identifies childcare responsibilities, skills mismatches and tax disincentives as the main factors suppressing female participation in the labor market, particularly among married women and mothers. The findings highlight how deeply entrenched social and economic obstacles are limiting Greece’s ability to expand its workforce at a time when the country is seeking stronger long-term growth.
Childcare is described as the most pressing challenge. Limited access to nurseries and organized childcare services continues to force many women to leave work temporarily—or permanently—after having children. According to the study, roughly 70% of children in Greece are not enrolled in formal childcare programs, a rate significantly above the Eurozone average. In some regions, particularly in northern parts of the country, childcare infrastructure remains scarce, leaving families heavily dependent on grandparents and other relatives for support.
The IMF argues that the lack of childcare services is no longer simply a social policy issue, but an economic one. Greece is facing one of Europe’s sharpest demographic contractions, with an aging population and a shrinking labor force threatening future growth prospects. Expanding access to childcare alone could raise labor-force participation by around 3%, according to the Fund’s estimates.
The study also points to widening skills gaps that make it harder for women outside the labor market to return to employment. Many women who spend years away from work because of family obligations struggle to meet the changing demands of an economy increasingly shaped by digital technologies and higher-skilled services. Long absences from employment often erode professional experience and reduce opportunities for re-entry, particularly for older women and those with lower levels of education.
Limited access to retraining and lifelong learning programs further compounds the problem. The IMF says targeted vocational and digital-skills programs aimed specifically at women outside the workforce could help narrow the employment gap between men and women while easing labor shortages in key sectors of the economy.
A third obstacle identified in the report is Greece’s tax structure, which the IMF says discourages second earners—typically women—from taking up work. The country’s relatively high “tax wedge,” which combines income taxes and social-security contributions, reduces the financial gains from dual-income households, especially among lower-income families.
In many cases, analysts note, the additional income generated by a second job is largely offset by taxes, childcare expenses and social-security costs. For households weighing whether both parents should work, particularly in low-paid or part-time positions, employment can appear financially unattractive.
The IMF recommends a more targeted system of tax relief and childcare subsidies for families with children in order to strengthen incentives for women to remain in or re-enter the labor market. Such measures, the Fund estimates, would carry a relatively limited fiscal cost while delivering meaningful gains for employment and economic growth.
