Greece’s Public Employment Service (DYPA) is entering a new cycle of active employment policies, with its multi-year strategy placing greater emphasis on the creation of 200,000 new jobs, the acquisition of modern skills, and bridging the gap between unemployed workers and the real needs of businesses. The next four years are expected to revolve around a broad network of programs targeting different categories of unemployed and employed workers. Young people, the long-term unemployed, older job seekers, women, and workers in need of upskilling will all be at the center of these initiatives. The core philosophy behind DYPA’s new strategy is that tackling unemployment cannot be limited to passive policies. Unemployment benefits are only one piece of the puzzle. The greater focus is now shifting toward training, work experience, hiring subsidies, and business creation.
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DYPA’s full plan for the fight against unemployment: who gets a seat at the table
One of the key pillars of DYPA’s initiatives will continue to be subsidizing businesses that hire unemployed workers. Through these programs, the state covers part — or even all — of the wage and insurance costs for a fixed period of 12 months, significantly reducing the cost of hiring for participating businesses. Under programs already designed or currently in progress, subsidies can reach substantial levels, and in some cases may cover up to 100% of employment costs.
*Unemployed youth aged 18–29. Young people between the ages of 18 and 29 are among the primary target groups in DYPA’s strategy. The lack of work experience continues to be a major barrier for many young people taking their first steps in the labor market. To address this, programs are being promoted to help unemployed youth gain professional experience by working within businesses, building practical skills while also improving their chances of securing permanent employment. The plan also includes new entrepreneurship programs. Under specific conditions, unemployed young people will be able to receive financial support to start their own business. Particular emphasis is placed on women and on business activities linked to the digital and green economy. This approach aims to create an alternative path for young people who do not wish to pursue traditional salaried employment exclusively.
*Training and upskilling. The second major category of initiatives focuses on training. DYPA has already launched large-scale programs reaching tens of thousands of unemployed and employed individuals. These initiatives center primarily on digital and green skills, as well as competencies deemed essential for workers adapting to the new demands of the economy. Digitalization, artificial intelligence, the energy transition, and automation are creating new specializations while simultaneously transforming how traditional professions are practiced. For this reason, training is expected to become one of the largest funding pillars of the coming period, with a target of reaching 200,000 workers.
*The 55+ group. Older unemployed workers occupy a distinct place in DYPA’s planning. Reintegrating citizens aged 55 and above into the labor market is a significant challenge, as the longer unemployment persists, the harder it becomes to return to work. DYPA has already implemented large subsidized employment programs for the 55–74 age group, and this policy is expected to continue and be further strengthened. Currently, 55,000 formerly unemployed individuals are already participating in such programs. These initiatives aim both to give a second chance to people who have been left out of the labor market and to put their experience and expertise to productive use.
*Women. Special emphasis is also expected to be placed on increasing women’s participation in the labor market. DYPA’s initiatives already include programs that prioritize or offer additional incentives for hiring women, while female entrepreneurship is also one of the key axes of the new action plan. The goal is to reduce the barriers that continue to keep a significant portion of women outside the workforce and to increase overall female employment participation.
*New subsidized job programs. A new package of 35,500 subsidized positions is set to open imminently, targeting young people up to the age of 30 as well as older unemployed individuals. The two programs will move in different directions. The first will cover 5,500 young people aged 18 to 29, while the second will be considerably larger, creating 30,000 positions for unemployed individuals aged 30 and above.
The program will run for 12 months and will be built around the acquisition of work experience, giving young people who are outside the labor market the opportunity to work in private sector businesses. Funding is set to cover up to 100% of employment costs, effectively eliminating financial risk for participating companies.
The larger of the two programs will target 30,000 unemployed individuals aged 30 and over. Special weight will be given to unemployed women and to those over 50, as both groups face a heightened risk of long-term exclusion from the labor market. By covering a significant portion of wage costs, the initiative aims to create a stronger incentive for businesses to move forward with new hires.
Originally published in Kyriakatiki Apogeumatini
