Eurostat Report: Greece Among EU Nations with Highest Unused Labour Potential in 2023

In 2023, 12.0% of the European Union’s extended labour force remained underutilised, amounting to 27.1 million people aged 15 to 74 who were either unemployed, underemployed, seeking work despite not being immediately available, or immediately available but not actively job-seeking.

Known as “labour market slack,” this measure provides insight into the extent of unused labour potential in the EU, often reflecting economic health and efficiency. When slack is low, it suggests a fully optimised labour force and a stronger economy.

Greece reported one of the EU’s highest levels of labour market slack, with 16.3% of its extended labour force untapped, closely following Spain (20.2%), Italy (17.7%), and Sweden (16.4%). In contrast, Poland recorded the lowest slack rate at 4.8%, followed by Malta (5.2%), Hungary (6.0%), Czechia (6.4%), and Slovenia (6.5%).

Within the EU labour market, unemployment constituted the largest component of this slack, representing 5.8% of the extended labour force. Other significant components included individuals available to work but not actively seeking employment (2.8%), underemployed part-time workers (2.5%), and those seeking employment but not immediately available (0.9%).

In Greece, unemployment contributed heavily to labour market slack, with 10.8% of its extended labour force categorised as unemployed—the second-highest rate in the EU, just behind Spain at 11.7%. However, notable deviations in slack composition occurred in the Netherlands and Ireland, where underemployment among part-time workers was the dominant factor, representing 5.1% and 4.5% of their labour force, respectively. In Czechia, 3.2% of the labour force consisted of people seeking work without immediate availability, marking the highest rate in this category across EU countries.

Source: GCT–Charlie Komalenko