Greece Faces Record Vacant Job Positions Amid Employment Slowdown

Vacant job positions in Greece saw a sharp increase of 32.6%, approaching 49,000 in the third quarter of 2024, marking the highest recorded number of vacancies for this period since data collection began in 2009 by the Hellenic Statistical Authority (ELSTAT).

Relevant data indicate that although unemployment is decreasing in the Greek labor market, employment on the other hand, is not increasing at a similar pace. In fact, employment decreased in the third quarter compared to the immediately preceding quarter, even though it should have increased, as it coincides with the peak of the Greek tourism season.

On an annual basis, the number of employed people increased by 1.7%, down from 2% in the second quarter. These results indicate a slight slowdown in employment growth in the third quarter of 2024.

During the same period, labor costs decreased by 2.9%, a direct contrast to the 5.1% rise in the average labor costs in the EU.

According to data released by Eurostat, the “devaluation” of hourly wages in Greece was the main factor driving the overall reduction in labor costs, which fell by 2.6%, as non-wage costs also dropped by 1.7%. This breaks the previous trend of increasing hourly wages, which had been above the EU average.

A key reason for the seemingly paradoxical rise in vacant job positions, despite the fact that employment rates remain among the lowest in the EU, is often attributed to the so-called “skills mismatch.” Employers are looking for different skills than those possessed by job candidates.

According to the OECD, Greece has one of the highest rates of overqualified workers in the EU—those who have more formal qualifications than are required for the positions they hold.

Specifically, nearly one in three higher education graduates in Greece has an excess of skills, the second highest rate in the EU, following Spain.

Among employed graduates aged 25-34, nearly four out of ten are overqualified, the highest percentage among all age groups and the highest in the EU.

Additionally, the percentage of underemployed individuals—those who studied one field but are working in a completely different job—approaches 42%, which is also one of the highest rates among OECD countries and significantly higher than the EU average, at 32%.

Source: Tovima.com