According to Eurostat, Greece has the third-lowest employment rate for recent graduates in the European Union. Italy (67.5 percent), Greece (72.3 percent), and Romania (74.8 percent) report the lowest employment rates. Various factors contribute to these low numbers, including a lack of available jobs and a disconnect between university programs and labor market needs.
In 2023, 83.5 percent of recent EU graduates found employment, marking a 1.1 percent increase from 2022’s 82.4 percent. Recent graduates are people between the age of 20 and 34 who completed their studies at the secondary or tertiary level within the past one to three years.
Over the past decade, the employment rate for recent graduates has steadily increased. In 2013, only 74.3 percent of recent graduates were employed. This rate has consistently risen, except during the pandemic, when it dropped to 78.7 percent in 2020—a 2.3 percent decrease from 2019.
In 2023, the employment rate for recent tertiary graduates reached 87.7 percent. This figure stands 9.6 percent higher than the rate for those with only secondary education, which was 78.1 percent.
Half of the university departments in Greece are not equipped to increase employment rates
A study by EY Greece, the Electronic Business Laboratory (ELTRUN) of the Athens University of Economics and Business, and Endeavor Greece highlights the urgent need for significant reforms. To foster economic growth, Greece must bridge the gap between higher education and the labor market. Although Greece has a well-educated workforce and respected universities, there is, however, a significant mismatch between the skills required by the labor market and those provided by the education system. Consequently, despite the strong educational foundation, many graduates struggle to meet the demands of employers. Thus, addressing this gap is crucial for aligning educational outcomes with market needs.
As a result, unemployment among recent graduates remains high, while businesses struggle to find qualified candidates. The rise in job vacancies underscores this issue. Employers also express concern about the skill levels of recent graduates. A lack of training and reskilling opportunities for the existing workforce compounds this problem.
Low university graduation rate
In Greece, students make up 7.51 percent of the total population, nearly double the European average of 4.03 percent. However, this statistic creates a misleadingly positive image. The large number of inactive students and the EU’s lowest graduation rate contribute to this figure. While the percentage of the population with higher education in the 24-34 age group is close to the EU average, it falls short in older age groups.
Additionally, the employment rate for higher education graduates in Greece, aged 25-64, is the lowest among the 27 EU countries at 75.4 percent. The situation is even worse for new graduates aged 25-34.
The study attributes Greece’s poor performance to the misalignment of university departments with the country’s growth needs. Of Greece’s 430 university departments, only 219 (51 percent) align with the nation’s economic priorities. These departments offer graduates direct employment prospects in the private sector. In contrast, 54 departments focus on health, 115 on teacher education, and 42 on public sector roles. A similar pattern emerges in postgraduate programs. Health Sciences and Social Sciences & Humanities dominate, representing 19.6 percent and 14.9 percent of total enrollment, respectively.
