Just Coal Transition in Western Macedonia, Greece-Insights from the Labor Market

This report analyzes the consequences for the labor force of Western Macedonia’s (Greece) decarbonization as part of Europe’s new Green Deal. Already, the region records the highest unemployment rate of the country (27 percent in 2018). A survey of contractors suggests that about 16,000 jobs could potentially be affected by the closure of the mines (about 4,500 directly in coal and power production and another 11,000-11,500 indirectly supplying goods and services). It mainly concerns older and less educated, but medium-skilled workers. Many do not expect much of a future in Western Macedonia, with most of the better-skilled seeing themselves move to other regions. But much will also depend on the coal transition path chosen, including the timing and labor intensity of the power plant decommissioning and land reclamation plans, as well as those of the new alternative activities promoted. Timely consultations with the workers affected will also be critical.