Greece Lags Behind EU in Wage Growth

Athens, Greece—Greece recorded a significant decline in hourly wage rates during the third quarter of 2024, contrasting sharply with the overall trend in the European Union. While the EU average saw a 5.1% increase, Greece experienced a 2.9% decrease.

This downturn follows a period of substantial wage growth in Greece, with 6.7% and 9.3% increases in the third quarter of 2023 and the second quarter of 2024, respectively. However, the recent decline suggests a potential shift in labour market dynamics.

Across the Eurozone, hourly labour costs increased by 4.6%, driven by both wage and non-wage cost components. The EU experienced a similar trend, with a 5.1% increase in hourly labour costs.

This stark contrast between Greece and the broader European Union raises concerns about the country’s competitiveness and its ability to attract and retain talent. It also highlights the need for further economic reforms to boost productivity and wage growth.