Labour shortages across key sectors are costing Greece billions in potential economic output, prompting major companies to recruit recognised refugees already living in the country as delays in bringing in foreign workers persist.

Greece’s GDP could be €5 billion to €5.5 billion higher if the country managed to fill vacant positions in key sectors of the economy, including construction, tourism, manufacturing and agriculture, in record time. Such a prospect, however, remains largely unrealistic. Labour shortages are affecting not only Greece but the whole of Europe, which, according to recent figures, will need around one million workers of all skill levels annually over the coming years.

In an effort to overcome the difficulties and delays associated with recruiting workers from non-EU countries, Greece has begun tapping into a new source of lower-skilled labour over the past year: recognised refugees who have already been granted asylum and are living in the country. Employers have increasingly turned their attention to this group after struggling with recruitment procedures that can take up to six months. In some cases, prospective employees recruited for hotels, for example, do not arrive in Greece until after the tourist season has ended, rendering the entire process pointless.

At a recent event organised by WorkInGreece.co, a platform connecting employers with workers from third countries, in cooperation with the American College of Greece’s ACG The Demos Center, approximately 450 refugees met representatives of 10 major companies operating in Greece: Nestlé, Pharmathen, DEMO, AKTOR Group, Costa Navarino, AB Vassilopoulos, Plaisio, KORRES, Melissa Kikizas and WorkInGreece. Of those attending, 250 progressed to the second round of interviews.

“What surprised us was not so much the impressive turnout,” said Vangelis Kanellopoulos, managing director of WorkInGreece, “but the realisation that we already have a workforce in Greece capable of meeting businesses’ needs. Their pay starts at the minimum wage, but if they are willing to undergo training and have certain qualifications, such as experience as welders, machine operators or tourism workers, or hold a driving licence, they can receive a promotion and a pay rise within four to six months. It is understandable that employers may have doubts and reservations.

“That is why our advice is to start by hiring four or five workers, assess their performance and, if the trial goes well, expand recruitment. As for the prospective employees, the atmosphere was particularly interesting. They arrived at the meeting suspicious and left smiling, having realised that they genuinely had opportunities to pursue their dreams in Greece. After all, 50% of applications to recruit workers from third countries concern low-skilled positions. My recommendation to employers, therefore, is that if they need workers for such jobs, they should turn to refugees who have already been granted asylum, are living in Greece and are immediately available. This would also ease the pressure on consulates, which are largely responsible for delays in overseas recruitment. If, however, companies require specialised workers with certified qualifications, they will inevitably have to follow the recruitment procedure for workers from abroad.”

Petros Mastakas, Durable Solutions Officer at the United Nations High Commissioner for Refugees (UNHCR), speaking on the second day of the same event, the Employers’ Forum, co-organised by WorkInGreece and the American College of Greece (ACG), stressed the importance of refugees feeling secure and their desire to establish roots in a new country. “They are trying to find a new homeland because they want to save their lives, which are at risk in Congo or Sudan,” he said. “Yet these people bring education and skills with them.

Almost 40% of refugees have completed secondary education. On the other hand, employers face difficulties as well as prejudices, which are part of human nature. For example, refugees may be unable to provide documents from their home countries. The vast majority of refugees are looking to put down roots. And they will do so wherever they can find a future, not in a makeshift shack in the strawberry-growing villages of Ilia.”

Vassilis Pavlopoulos, Professor of Intercultural Social Psychology at the National and Kapodistrian University of Athens, also addressed prejudice and workplace behaviour at the event. “If I had to give businesses two or three basic pieces of advice to help refugees integrate more easily into the workplace, they would be these: avoid demeaning behaviour. Establish rules and appoint a mentor who will help the refugee feel secure. At first, they may not speak much, partly because language difficulties make it hard for them to express themselves. But as they begin to feel safe, they will take the initiative at work and express their opinions, which means they are gradually adapting.”

Violeta Ioannidou, general manager of ELASTOTET, a chemical manufacturing company, also shared her experience. “We started hiring Albanians and Pakistanis 10 years ago because our company was expanding and we needed workers. We went through the overseas recruitment process and, of course, experienced considerable difficulties, waiting a year and a half for workers to arrive and then another four months for them to obtain their social security numbers.

“Refugees therefore represent an interesting pool of potential employees. We started gradually, with small numbers. We hired six Sudanese workers. These were people for whom we had to provide accommodation, who had no clear prospects for their lives and whom we had to teach how to behave towards the opposite sex because they were Muslims. They needed care and a little hand-holding. Gradually, however, they integrated, and my overall assessment today of their behaviour and performance is positive.”

Panagiotis Petrakis, a WorkInGreece executive, drew a distinction between refugees who already hold residence permits and asylum seekers. “There are difficulties before a refugee can obtain a temporary permit and therefore a temporary healthcare number (PAAYPA), enabling them to acquire the right to work after 90 days. We provide them with the necessary information, guide them through the process and often accompany them to factories where they have job interviews.”

New legislation aims to accelerate recruitment

Athanasios Vitsentzatos, Director General of Migration Policy at the Ministry of Migration and Asylum, outlined the positive developments resulting from recent legislation aimed at reducing delays and bureaucracy.

“The process is subject to significant delays at consulates,” Vitsentzatos said, “so we at the ministry have taken on a role in facilitating visa issuance. The participation of temporary employment agencies, which have entered the process as intermediaries, has also helped ensure that the reliability of the procedure is not called into question.

A special recruitment category has also been introduced for strategic investment projects, allowing up to 500 people to come to Greece through fast-track procedures. These applications are examined as a priority for major projects, require less paperwork and are not subject to the €60,000 capital threshold per worker. This year, 95,000 recruitment applications were approved, and the same is expected for 2027. Statistics show that the situation has improved, with approvals for dependent employment, for example, doubling from 15,111 in 2025 to 30,000 in 2026.”

At the same time, the legislation provides for residence permits for foreign students attending universities and colleges, as well as visiting professors, while TEK visas and talent visas are being issued for highly qualified students.

Konstantinos Agraphidas, a director general at the Ministry of Labour, highlighted the difficulties facing not only Greece but the whole of Europe because of labour shortages. “Our country is experiencing enormous staff shortages, partly because of its declining population. At the same time, Europe faces labour shortages amounting to one million people annually across all occupations in the coming years. The issue is extremely significant for every sector of the economy.

A Cabinet decision expected in spring 2027 is anticipated to approve another 95,000 recruitment positions for workers from third countries. These mainly concern unskilled agricultural workers, kitchen porters and assistant waiters, while only 2,000 positions relate to technology and highly specialised occupations. Temporary employment agencies, which have been incorporated into the overseas recruitment process under the new law, can supply workers to businesses, helping to strengthen Greece’s credibility regarding wages and working conditions. This is something private recruitment agencies cannot guarantee. They have therefore been excluded from the procedure because we do not want employers operating in a grey area and damaging the country’s reputation.”

Maria Rigaki, a partner at Ernst & Young, believes employers also bear some responsibility for the delays. Although they can recruit unskilled workers from among refugees already living in Greece, many companies instead concentrate on bringing in workers from India, further exacerbating bottlenecks in the system.

“One company we worked with sought employees from Mexico, and we completed the process within a week because there was no congestion,” she said. “Furthermore, the issuance of tax identification numbers and social security numbers must finally be automated, consular staff need training, and a solution must be found to the gap in the system affecting recruited workers who want to change occupations after three years of employment, remain in Greece and move into another sector of the economy. With a humane approach, everyone can adapt. To share a recent experience, colleagues at a factory gave an Indian worker the name Michalis because they could not pronounce his actual name. They bought him a bicycle and welcomed him with open arms.”