This chapter discusses a number of features of the labour market which are particularly important for raising labour force participation and employment rates, which would improve Greece’s long-term economic performance and help speed economic and social convergence with European Union member countries. These are: the flexibility of the wage system; non-wage labour costs; employment protection provisions; labour mobility; active labour market policies; and the stock of human capital. The chapter concludes with a box (Box 4.3) summarising recent progress in labour market reforms and main recommendations for further policy action.