Does EU Migration Affect Greece's Economy - See Its Role
The increasing number of migrants in the world has become a point of concern, and Greece is no different. Thanks to its strategic location, many people use it as a stopping point on their way to other European countries. Moreover, many people see it as a suitable home as they escape the poor conditions in their countries. We look at the current statistics, how Greece has been handling the increasing numbers, and how this has affected its economy.
Reviewing the 2024 Statistics
People move to other countries to escape the conditions in their homes or to seek better alternatives. Let's consider why Greece fits both options:
Job opportunities for migrants
Many people coming into the country want to work and enjoy financial stability, which they cannot do in their home countries. Greece offers opportunities in many sectors, including hospitality, construction, and agriculture.
It is an entry point into Europe
Many migrants entering Greece wish to use it to enter Europe. After all, it boasts an ideal location that appeals to people from other continents. As a result, it gets a lot of traffic from migrants who may not intend to stay in the country but need a place to settle before making their next move.
It is a haven for conflict-riddled countries
Political conflicts in countries such as Syria have forced people to leave their homes in search of safety. Greece offers a home where people can rebuild their lives as they seek refuge. Many of these migrants also seek asylum.
In addition to these factors, Greece offers a good quality of life many migrants crave. The combination of these perks has resulted in increased migrant numbers, as follows:
- Population: Migrants comprise at least 7% of the country's population. They also account for at least 10% of the registered workforce and up to 25% of paid workers.
- Trends: Most migrants come from Afghanistan, Syria, and Egypt. Many arrive by sea—by March 2024, the country had recorded 9,500 sea arrivals, indicating an average of 3,000 per month. The net migration rate has slowed, reaching -0.543 per 1,000 in 2024. Compared to the previous year, there is a 53% decline.
Since the push and pull factors are relatively the same as those in previous years, Greek authorities expect a steady increase in numbers in the coming years.
How Has Greece Handled the Migration Flows
Increasing numbers of migrants contribute to higher government spending in various sectors, which can result in financial burdens. So, how has the government integrated the migrants?
A national strategy for integration
The government provides support through employment, education, and social integration programs, allowing migrants to equip themselves with the skills necessary to fit into society and achieve financial independence. Much of the success of this integration owes to the Task Force on Integration (launched in 2024), which ensures that non-EU migrants can access services in the Greek market.
Reliance on EU funding
Greece meets the financial responsibility of providing for migrants by acquiring funds from organizations (such as the Asylum Migration and Integration Fund and the European Social Fund) that reduce its reliance on local resources.
As such, Greece remains an attractive option for migrants who wish to secure support as they enter a new phase of their lives.
The Economic Impact of EU Migration
Reports show that in 2024 alone, at least 17,300 migrants used Greece as a transit route to Europe. Let's consider how migrants (including those in transit) impact the country's economy:
- Labor markets. Migrants have a double effect on the economy. On one hand, they address labor shortages in industries where labor demand is high. In such industries, the effect is more productivity, which is good for the economy. On the other hand, they increase the labor supply in industries with low labor demand, thus resulting in competition for jobs. As such, there are high unemployment rates among migrants, which adds to the government's financial pressure to provide for them.
- Economic growth. Since migrants account for up to 25% of paid workers in the country, they contribute a lot to the economy. Not only do they increase the demand for goods and services, but they also pay taxes to the government, which aids in overall economic growth. However, the increasing numbers of migrants also increase government spending on integration programs. Luckily, the long-term benefits of integration programs outweigh their initial costs.
Migrants also introduce new skills to the economy, shaping its diversity and allowing it to grow. Many also start their businesses and employ other migrants, increasing the overall GDP.
Conclusion
Greece continues to attract migrants who wish to use it as a transit country or settle in it. While the economic effects of this migration flow are a double-edged sword, stakeholders can find ways to ensure that this migration pattern benefits the economy. Already, the Greek government has invested heavily in integration programs that have balanced the effects and offered a promising future to migrants and citizens.
