Rejuvenating Greece’s labour market to generate more and higher-quality jobs | en

Greece’s labour market entered the COVID-19 shock following several years of sustained
employment growth and with wages picking up. Unemployment remained high and employment
rates were low, especially among women, the young and older workers. The shock led
to a sharp fall in labour force activity and has stalled new hiring. The improved
social protection and temporary support measures have helped to support households’
incomes and protect jobs during the COVID-19 crisis. However, high tax and social
security contribution rates, together with little in-work support for the low-paid,
continue abetting high structural informality. This heightens insecurity – by excluding
many workers from activation policies or social and employment protection – and weakens
productivity. Boosting the capacity of employment services and activation policies
would support the recovery from the COVID-19 shock, in addition to durably improving
employment prospects especially of long-term unemployed. Giving workplaces further
flexibility to adapt collective agreements to

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