Demographics, training and labor shortages
Greece is grappling with workforce shortages in both manual and specialized sectors of the economy. Discussions and corresponding policies are focused on identifying additional workers to fill positions associated with investments and to sustain positive growth rates. However, a second challenge looms.
As projected by the OECD, new technologies are anticipated to transform over 30% of existing job positions and fully eliminate at least 15% well before 2050. This holds significant implications for the involvement of current employees in the labor market. Notably, these estimates primarily pertain to more advanced economies that leverage technological advancements more efficiently and rapidly. Nevertheless, this situation will not leave Greece unaffected. On one hand, automation and tech-related activities are progressively dominating the Greek economy. On the other hand, every worker in this country is becoming invaluable due to negative demographic projections. By 2050, under a pessimistic scenario, Greece’s population may decrease by up to 1.5 million people. For various reasons, Greece cannot afford to maintain a workforce outside the labor market. Therefore, efforts should be dedicated not only to finding new workers but also retaining existing ones.
As projected by the OECD, new technologies are anticipated to transform over 30% of existing job positions and fully eliminate at least 15% well before 2050
Research suggests that, going forward, businesses should allocate at least 1.5% of their budget to training and upgrading the skills of their personnel. Speaking broadly about skills, international organizations emphasize the demand for fundamental characteristics such as computer literacy, creative thinking, data and information analysis, and the ability to communicate with individuals outside the organization. Proficiency in language skills is also deemed essential, as at least four out of 10 online job positions in non-English-speaking European countries require knowledge of English. In technical positions, this ratio is one in two.
In our era – according to some analysts we have already entered the Fifth Industrial Revolution – skills in every organization and business will determine the future growth rates of the economy. Emerging from successive crises and aging faster than other countries, Greece must attract additional labor while ensuring that the existing workforce can keep up with developments, remaining in the labor market. This is crucial for both social and growth-related reasons.
