Many developed countries are facing the prospect of a decline in population over the next decades, with total fertility rates well below the global average replacement rate of 2.3. Declining populations also mean aging populations: with fewer younger people in work and paying taxes, governments’ capacity to support the elderly declines, and as a result many countries are seeking to raise the retirement age, often to ferocious opposition from their citizens.

In Greece the problem is particularly acute. The total fertility rate for 2024 was 1.3 – little more than half the total needed for population replacement. As improved healthcare increases life expectancy, the proportion of people over the age of 65 has increased dramatically. At the same time the financial crisis prompted an exodus of young people in search of better opportunities abroad, and few of them are showing signs of returning despite government efforts to lure them back with advantageous tax packages. If this trend continues, it is estimated that Greece’s population could decline by as much as 25% by 2070 – a situation which the Prime Minister Kyriakos Mitsotakis has described as “an existential challenge for our future”.

Both national governments and international organisations are starting to address this problem, which like that of climate change, could have catastrophic effects if not dealt with in time. As reported in Haniotika Nea, the various issues associated the demographic problem were discussed at a recent conference held at the KAM in Chania.

The OECD conference in Chania
An increase in the age limits for retirement, lifelong learning programmes and an increase in legal immigration are the main solutions proposed by the Organisation for Economic Cooperation and Development (OECD) to the problems created in the labour market and the economy by declining fertility and the rapid aging of the population. The OECD predicts that if appropriate policies are not adopted in Greece the workforce will have declined by 2 million in 2050 by comparison with 2024.

These were among the observations made at the 2nd Annual Conference of the OECD’s Crete Centre on Population Dynamics with the title “Demographic shifts: shaping tomorrow’s labour markets”, held on 11th-12th November at the KAM in Chania in collaboration with the Municipality of Chania and the Delphi Economic Forum.

Speaking to reporters, the head of the OECD Centre Aris Alexopoulos said that while today Greece has 6.5 million workers of a productive age, by 2050 this will have been reduced to 4.5 million: “That is to say, we will have a 30 per cent reduction in numbers, which will lead to a reduction of around 15% in GDP. It may be recalled that during the economic crisis we lost 25% of GDP in five years. Therefore, if we do not do something now – albeit at a slower rate – by 2050 we will have a dramatic decline in the country’s standard of living.

Continuing, he observed that the problem is not a Greek but a global one, as only 11 African countries do not have these demographic characteristics: “In Greece we are giving birth less, as is the case all over the world, and as a consequence we have no young people. That means that we have to work with the middle-aged (50-plus), who need to be healthy, to have an appetite for work, to undergo retraining, to have many careers and to forget retiring at. 65 or 67. Let us keep that as a right and not as an obligation, but if we don’t do something we shall go hungry.”

Labour resources
Mr Alexopoulos pointed out, however, that this change cannot be brought about by the market alone, and that government policies are needed. There is a need, he said, to exploit manpower resources which currently have a low proportion of participation in the labour market. “Female employment in Greece for, example, was at 11% in September 2025, while male employment was 6%. That means that we have a pool of labour, but there is a form of racism against women, they are not easily hired. In addition unemployment in the age bracket 15 to 24 was at 19%, while the overall unemployment figure is 8%.”

“The statistics show that there is considerable room for increasing the workforce by incorporating more women and young people, but a different productive model is needed, increased salaries are needed for the young to work,” Mr Alexopoulos said, adding that at the same time there need to be polices for better healthcare for middle-aged workers so that they can, as he said, be productive until ripe old age. Training programmes are also needed.

The solution of immigration
Asked if legal immigration could be a solution to the shortage of manpower, Mr Alexopoulos said: “Encouraging immigration is an immediate solution. Spain is a very good example of this, having increased its GDP by 1.5% to 2% by successfully managing immigrant flows – legal that is – in particular fields. For example in Crete we know that we need extra hands in the primary sector, in tourism, in technical professions etc. Before long, then, competition between governments will not be who expelled the most immigrants, but who took most in.

“In Greece, the statistics show that over the past 10 years we have 8% fewer immigrants living legally in the country. We’ve actually had a reduction. So we should go in that direction without being afraid of what is foreign or different, because if we don’t find smart solutions we will go hungry,”

Asked about the issue of legal immigration and its reduction over the past 10 years, the Deputy Minister for Immigration and Asylum Sevi Voloudaki admitted that over the past few years the processes for inviting immigrants had been very strict and time-consuming, with the result that the response had not been positive. “For this reason, by the end of the month a new bill on legal immigration which we have been working on will be debated in Parliament, which will solve some of the problems concerning manpower. At the same time we are proceeding with intergovernmental agreements, such as that with Egypt for 5,000 agricultural workers, which will be implemented soon with the participation of Agricultural Cooperatives.”

On the subject of immigration, the Deputy Regional Governor for Chania Nikos Kalogeris told reporters that it needed to be managed in the best possible way for the benefit of the economy, while he said that countering the demographic problem is matter of survival for Greek society.

Social housing
Asked about the issue of social housing in relation to demographics, the mayor of Chania Panagiotis Simandirakis said: “There is a housing problem in areas which are undergoing strong development, like Chania. We are faced with it every day and it was discussed at the last conference of the Central Union of Greek Municipalities. Local government is required to take on not only an executive role but also a strategic role. This why we had requested money from the Recovery Fund to create social housing on our own properties but up till now there has not been any clear plan.

“What Mr Livanios, the Minister of the Interior has announced is the possibility for municipalities to offer up to €3,000 for each new birth. However, the minister did not announce any funding of the municipalities to cover such a need,” the mayor said, adding that the municipalities are demanding increased responsibilities and roles so that they can implement policies for housing.

Not a problem but an opportunity
Among those attending the conference was Filiz Unsal, Head of the Structural Policy Analysis Division at the Economics Department of the OECD. Speaking of the challenges of the demographic issue and the dramatic social consequences which it may have, she said that it should been seen not as a problem but as an opportunity to implement policies which benefit the economy and society.

Scientific progress and the increase in life expectancy give the opportunity even to those who are of advanced age to remain productive and gainfully employed. “We need both the young and the old, both the energy of the young and the experience of the older,” she said.
(Haniotika Nea, 12/11/25)

What the government is doing
Addressing the conference via an internet link, the Minister of Labour and Social Security Niki Kerameos spoke of Greece’s strategic approach to the country’s demographic transformation. Following an extended economic crisis the country had made substantial progress in reducing unemployment and strengthening the institutions of the labour market, she said, but “demographic change, the aging population, the reduction in births and the brain drain require a long-term and coordinated response.”

The Greek government is implementing a comprehensive plan for boosting employment at all ages and in all social groups. “Special emphasis is being given to women, through the extension of access to good-quality childcare services, the promotion of flexible forms of working, the extension of parental leave and the support of female entrepreneurship. Women’s unemployment has been reduced by 54% since 2019.”

“For citizens over the age of 50 we are promoting policies of active aging and lifelong learning. Labour subsidy programmes encourage businesses to retain and hire experienced workers, while digital training activities enable older people to remain competitive. The removal of institutional barriers which excluded pensioners from employment has led to an impressive increase in working pensioners from around 35,000 to over 250,000.”

For young people Greece, is investing in traineeships which link training with the labour market. Since 2019, youth unemployment has been reduced by 48.4%, the Minister said, mentioning activities to boost professional training, public training centres, and programmes for subsidising young workers.
(Haniotika Nea 13/11/25)