EU struggles with worker mobility as Greece remains among the laggards

The European Union continues to face major hurdles in labor mobility, with fewer than 4% of its working-age population employed in a member state other than their own, according to recent data. Analysts warn that this low level of mobility threatens the bloc’s ability to sustain economic growth and remain competitive globally.

Greece fares even worse than the EU average, attracting only 2% of foreign workers, despite grappling with one of the most severe demographic crises in Europe. The country also lags behind the eurozone average in foreign direct investment, underscoring the urgent need to attract skilled talent and a larger workforce in order to converge with European standards.

Eurostat data show that Luxembourg (40%), Cyprus (12%), Austria (11%) and Malta (10%) top the list of EU countries where the highest share of the workforce comes from abroad. By contrast, Greece ranks among the lowest performers, along with Bulgaria, Hungary, Latvia and Romania.

An International Monetary Fund (IMF) report highlighted how the EU’s fragmented labor market prevents businesses from accessing a wider pool of talent, in stark contrast to the United States. Barriers range from cultural and linguistic differences to systemic issues such as poor recognition of skills, weak coordination of social security systems, difficulties in transferring pension rights, and limited access to affordable housing.

In some member states, additional obstacles include high fees for the recognition of academic titles, excessive documentation requirements, lengthy procedures, and arbitrary checks that delay or block qualifications recognition. “An optimized and consistent system of recognition of qualifications is needed,” the IMF stressed, noting that these barriers not only restrict workers’ career opportunities but also slow down the EU’s overall economic integration.

According to former Italian Prime Minister Enrico Letta, regulation adds yet another layer of difficulty. Nearly 5,400 professions — covering 22% of the EU workforce — are regulated across member states, a situation that discourages mobility and, in many cases, forces workers to switch professions or accept lower-skilled roles when relocating.