In a typical labor market, when demand is high and supply is limited, salaries rise until balance is restored. That’s not in Greece, where wages remain low while employers struggle to fill vacancies. Although low wages are not the only cause of labor shortages, they are an important factor, as shown by the figures Kathimerini reveals.
The problem is structural, as the Greek economy is based on labor-intensive industries with limited profit margins, which holds down salaries even when demand for workers is high.
Despite employers saying they are struggling to find staff in sales, food service, hotels and technical occupations, wage data show a different picture: They remain low and their rise, over time, is limited. Official data of the Hellenic Statistical Authority (ELSTAT) clearly reflect this perennial stagnation, even for professionals characterized as “hard to find.”
In 2006, before the financial crisis, net monthly earnings for service workers and salespeople amounted to €837.40 (for full-time employment), while skilled craftsmen received an average of €906.50 for full-time employment. Fifteen years later, in 2021, the corresponding earnings were €876.70 for services and sales and €927.60 for craftworkers. That is, in nominal terms, wages have remained essentially stagnant for 15 years, despite deep labor market realignments and the recovery that followed after 2017.
But from 2021 to 2024, a noticeable increase was recorded: Service and sales workers reached €998.60 and skilled craftworkers €1,087.30. The improvement is there, especially compared to 2021, but it coincides with a period of strong inflationary pressures and a significant rise in the cost of living.
So why doesn’t increased demand lead to a proportional rise in wages? The answer is largely related to the structure of the Greek economy.
As can be seen in practice, the hospitality and retail sectors are characterized by a large presence of small and very small businesses, with limited profit margins and intense price competition.