Greece’s Economic Challenges: A Shrinking Workforce and Lagging High-Tech Sector
The Greek economy continues to grapple with structural issues, including a lack of a robust development model and insufficient investment in export-oriented sectors, especially in manufacturing and new technologies. This is according to the latest interim report on the Greek economy published by the Greek General Confederation of Labor (GSEE). The report, conducted by the Labor Institute of the Confederation (INE GSEE), highlights alarming trends in employment and the country’s underperformance in high-tech industries.
Employment Trends: A Shifting Landscape
Between the third quarter of 2009 and the third quarter of 2024, Greece is projected to lose 305,200 jobs. This decline is particularly pronounced in the secondary sector, which includes manufacturing.The share of jobs in this sector dropped by 4.7 percentage points, from 21.4% in 2009 to 16.7% in 2024. Similarly, the primary sector, which encompasses agriculture, saw a modest decline of one percentage point, from 11.2% to 10.2%.
In contrast,the service sector has experienced significant growth. Its share of total employment rose from 67.4% in 2009 to 73.1% in 2024. Between 2019 and 2024 alone, employment in the tertiary sector increased by 205,600, accounting for the majority of the overall employment growth of 312,300 people.Though,this growth masks deeper issues. By the third quarter of 2024, total employment is expected to be just 72.6% of what it was in 2009.
High-Tech Sector: A Missed Prospect
One of the most concerning findings of the report is Greece’s underperformance in high-tech industries. In 2023,only 3.4% of workers were employed in dynamic high-tech sectors. While this represents an enhancement compared to 2009 and 2019, it remains the second lowest among EU member states.
The situation is even more dire in high-tech manufacturing, where only 0.8% of the workforce is employed. This places Greece alongside romania and Croatia at the bottom of the EU rankings. the report underscores the urgent need for Greece to invest in innovation and technology to remain competitive in the global economy.
key Takeaways
| Sector | Employment Share (2009) | Employment Share (2024) | Change |
|————————|—————————–|—————————–|———————|
| Secondary (Manufacturing) | 21.4% | 16.7% | -4.7 percentage points |
| Primary (Agriculture) | 11.2% | 10.2% | -1.0 percentage point |
| Tertiary (Services) | 67.4% | 73.1% | +5.7 percentage points |
A Call for Action
The findings of the INE GSEE report paint a stark picture of Greece’s economic challenges. The country must address its reliance on the service sector and invest in high-tech industries to foster sustainable growth. As the report notes, “the lack of a development model with good investments and an export-oriented character” is a critical barrier to progress.
For Greece to thrive in the modern economy, policymakers must prioritize innovation, support manufacturing, and create opportunities in emerging technologies. The time to act is now.What steps should Greece take to revitalize its economy? Share your thoughts in the comments below.
Revitalizing Greece’s Economy: Addressing Workforce Shrinkage and High-Tech Lag
Greece’s economy faces significant challenges,including a shrinking workforce and a lagging high-tech sector,as highlighted in a recent report by the Greek General Confederation of Labour (GSEE). Too delve deeper into these issues,we sat down with Dr. Elena Papadopoulos,an economist specializing in labor markets and technological innovation,to discuss potential solutions and strategies for revitalizing Greece’s economy.
Employment Trends: A Shifting Landscape
Senior Editor: Dr. Papadopoulos, the report indicates a significant decline in employment, especially in manufacturing and agriculture. What do you see as the primary drivers of this trend?
Dr.Papadopoulos: The decline in manufacturing and agriculture is largely due to structural inefficiencies and a lack of investment in these sectors. Over the past decade, Greece has seen a shift toward the service sector, which now accounts for 73.1% of total employment.While this growth in services is notable, it masks deeper issues, such as the loss of high-value jobs in manufacturing and the underutilization of agricultural potential. Without targeted interventions, this trend could further exacerbate economic inequality and reduce Greece’s competitiveness globally.
Senior Editor: What steps can Greece take to reverse this decline in the secondary and primary sectors?
Dr. Papadopoulos: Greece needs to modernize its manufacturing and agricultural sectors by adopting advanced technologies and fostering innovation. For example, investing in automation and sustainable practices could make manufacturing more competitive. In agriculture, promoting agri-tech and value-added products could create new opportunities. Additionally, policymakers should focus on improving infrastructure and providing incentives for businesses to invest in these sectors.
High-Tech Sector: A Missed Prospect
Senior Editor: The report highlights Greece’s underperformance in high-tech industries,with only 3.4% of workers employed in dynamic high-tech sectors. Why is Greece lagging behind in this critical area?
Dr.Papadopoulos: Greece’s lag in high-tech industries stems from a combination of factors, including insufficient investment in research and development (R&D), a lack of skilled labor, and limited collaboration between academia and industry. While there have been some improvements, such as the slight increase in ICT specialists, Greece remains near the bottom of EU rankings in high-tech manufacturing, with only 0.8% of the workforce employed in this sector. This is a missed possibility,especially given the global demand for high-tech products and services.
Senior Editor: What measures should Greece implement to boost its high-tech sector?
Dr. Papadopoulos: Greece must prioritize innovation by increasing funding for R&D and creating a supportive ecosystem for startups and tech companies. Strengthening partnerships between universities and industries can also help bridge the skills gap.Additionally, the government should offer tax incentives and grants to attract foreign investment in high-tech industries. Building a robust digital infrastructure is equally important to support these efforts.
A Call for Action: Building a Sustainable Future
Senior Editor: The report emphasizes the need for a development model with good investments and an export-oriented character. How can Greece achieve this?
Dr. Papadopoulos: Greece needs a comprehensive strategy that aligns workforce development with business needs, as highlighted by PwC’s findings [[1]]. This includes investing in education and training programs to equip workers with the skills required for emerging industries. Policymakers should also focus on creating an export-oriented economy by supporting industries with high growth potential, such as renewable energy, tourism, and high-tech manufacturing. Collaboration between the public and private sectors will be crucial in driving these initiatives forward.
Senior Editor: what is your message to Greek policymakers and stakeholders?
Dr. papadopoulos: The time to act is now. Greece has the potential to transform its economy, but it requires bold and decisive action. By addressing the structural issues in the labor market, investing in innovation, and fostering a culture of collaboration, Greece can build a sustainable and competitive economy for the future. The challenges are significant,but so are the opportunities.
What steps do you think Greece should take to revitalize its economy? Share your thoughts in the comments below.
