Greek long term unemployment was among the three worst in the European Union, according to the latest report released by the European bloc’s statistical authority, Eurostat.
While the long-term jobless rate in the European Union as a percentage of the workforce settled at 2.1% in 2023, a historic low since 2009, Greek long term unemployment stood out with a rate of 6.2%, the second worst in the Union, with only Bosnia Herzegovina being worse with 9.6%. Spain, with 4.3% came in third from the bottom.
On a positive note, in October, Greece’s youth unemployment (15-29) was 6.3% of the total population in that age group, marking the lowest level ever seen in the available data. However, despite this promising trend, according to Eurostat, Greece’s youth unemployment rate is still relatively high compared to other European nations at 9.8%. Sweden registered the highest youth unemployment rate at 10.9%, followed closely by Spain at 10.8%. On the other hand, countries like the Czech Republic (2.4%), Bulgaria (3.2%), and Germany (3.3%) report much lower youth unemployment rates.
Greece’s High Rate of “Labor Market Slack”
While the jobless rate in Greece has showed signs of improvement, the country faces a significant challenge in terms of underutilized labor, also known as “labor market slack.” Greece ranks fourth in the EU for this metric, which measures the proportion of the working-age population that is either unemployed, underemployed, actively seeking work but not available, or not looking for work at all.
The latest Eurostat figures show that in 2023, Greece’s labor market slack stood at 16.3%, well above the EU average of 12%. This indicates that a significant portion of Greece’s potential workforce remains underused.
The highest levels of slack were reported in Spain (20.2%), Italy (17.7%), Sweden (16.4%), and Greece (16.3%).
These figures highlight a pressing issue for Greece: while the youth unemployment rate has decreased, the broader labor market remains “loose,” with many individuals in the working-age population not fully participating in the economy. This situation reflects a mismatch between available labor and job opportunities, contributing to both unemployment and underemployment in various sectors.
