The Deputy Minister of Migration and Asylum, Sevi Voloudaki, described the demographic issue as “an existential problem for our homeland” while speaking at the 2nd Annual Conference of the OECD Crete Centre on Population Dynamics.
As she noted, the conference “highlights the dynamics of demographic developments and the shaping of the labor market,” emphasizing that the demographic issue “is not merely a numerical or statistical figure, but a matter that directly affects the economy and the very existence of the nation.”
The Deputy Minister stressed the need for “a comprehensive policy to support families and provide meaningful incentives so that young people can take the next step.” She also pointed out that island and mountainous areas experience the problem more acutely, referring to “the legislative provision for local origin scoring, aimed at effectively strengthening regional areas.”
She presented a set of measures ranging from flexible forms of employment to housing programs and emphasized the importance of brain gain and the reinforcement of fatherhood. “Europe is aging – and Greece is aging with it,” she stated, adding that the government “continues to implement policies that strengthen incentives for young people to have children.”
Referring to the labor market, she described a dynamic landscape with needs in sectors such as tourism, agriculture, construction, care services, and catering. She explained that the new draft law on legal migration “simplifies procedures so that applications are processed faster and bilateral agreements can move forward, such as the one with Egypt, which allows for the legal employment of workers for a specific period of time.”
“We need a modern and realistic model for legal migration policy, where integration is the central driver,” she underlined, adding that cooperation between the state and the productive sector “enhances this dynamic and supports social cohesion.” “We are sending the message of a strong and fair Greece that invests in its people,” she concluded.
Demographic changes affect the economy and society
In the same context, OECD Secretary-General Mathias Cormann warned that “demographic forces have a decisive impact on our economies and societies.” He noted that population shifts “shape demand, savings, investment, healthcare, education, and housing,” while also influencing labor markets.
He pointed out that skill shortages are increasing globally, “partly due to falling birth rates,” while population aging “intensifies pressures on healthcare and long-term care systems.” Pension systems are also under growing strain, as the ratio of elderly people to the working-age population continues to rise. “In 2000, there were 22 people aged over 65 for every 100 people of working age. Today there are 33, and by 2050 this will reach 52,” he said.
According to OECD estimates, the decline in labor force participation due to aging will limit per capita GDP growth from 1% per year during 2006–2019 to 0.6% between 2024 and 2060. “This means that, because of aging, per capita GDP in 2060 will be about 14% lower than it would be without this trend,” he stressed. At the same time, tax revenues are expected to fall while public spending on pensions, healthcare, and care services will rise.
Cormann outlined three main policy directions. First, “as we live longer and healthier lives, we can also work longer,” he noted, pointing out that only 56% of people aged 60–64 are employed across OECD countries. He proposed increasing the effective retirement age and eliminating disincentives for continued employment.
Second, he urged governments to actively support the health and education of older workers: “We need investments in prevention and reskilling so that workers can remain healthy and productive throughout their working lives.” Third, he emphasized the need to tap into what he called “underutilized talent pools”—women, young people, and migrants.
“Increasing female participation to the level of men’s could offset half of the slowdown in growth caused by aging,” he explained, adding that this would correspond to a 0.2 percentage point annual increase in per capita GDP by 2060.
He also placed special emphasis on the role of technology: “Artificial intelligence can make work less demanding and more efficient, but proper training is required to use it effectively.”
In conclusion, he noted that “economic, social, and labor market policies must adapt to new demographic realities.”
The Conference is being held at the Center of Mediterranean Architecture in Chania, in collaboration with the Municipality of Chania and the Delphi Economic Forum, under the auspices of the Ministries of Labor and Social Security, Migration and Asylum, Social Cohesion and Family. It is supported by the Region of Crete and the Regional Development Fund of Crete.
