Labour Market Information: Cyprus

National level - Cyprus

^{* The years referenced in this report vary, as the data is based on the most up-to-date information available for each indicator, as of December 2024.}

Labour market

As of 1 January 2024, 933 505 people lived in Cyprus. The gross domestic product per inhabitant was EUR 30 400 in 2022, 14.1% lower than the average of EUR 35 400 per inhabitant in the EU27. Between 2018 and 2022, the GDP per capita increased by 22%.

^{Note: nama_10r_2gdp, Statistics | Eurostat (europa.eu)}

In 2023, more than 0.5 million people were active on the labour market in Cyprus. The employment rate was 75.2%, 4.8 percentage points higher than the EU27 average and 6.6 percentage points higher compared to 2018. In 2023, for women, the employment rate was 71.4%, for men, the employment rate was 79.3%, and for youth, the employment rate was 35.1%, with men and women having rates higher than the EU average and with only youth having a rate lower than the EU average.

^{Note: lfst_r_lfe2emprt, data refer to working age population (15-64), youth age group (15-24)  Statistics | Eurostat (europa.eu)}

In 2023, the unemployment rate was nearly matching the level registered in 2022. In 2023, the unemployment rate has not yet returned to the level before the pandemic, when it equaled 8.6% in 2018, and 7.3% in 2019. The unemployment rate fluctuated compared to the EU27 average In the year(s) 2023 it was below the EU27 average, with rates of 6 % , respectively In the year(s) 2018, 2019, 2020, 2021 and 2022 it was above the EU27 average, with rates of 8.6 %, 7.3 %, 7.8 %, 7.7 %, 6.9 % , respectively. In 2023, it was 0.1 percentage points lower in Cyprus than in the EU27, nearly matching the EU27 average.

In 2023, 67.7% of the active workforce were from Cyprus, 10.6% from other EU Member States and 21.7 from third countries. In the EU27, as of 2023, the highest proportion of the workforce comes from the respective country (85% on average), while on average a smaller portion is from foreign countries (4.3% from other EU Member States, and 10.5% from third countries).

In 2022, most employees worked in wholesale and retail trade; repair of motor vehicles and motorcycles (20.6%), followed by accommodation and food service activities (14.4%), professional, scientific and technical activities (10.4%) and construction (10.2%). In terms of number of enterprises, most can be found in wholesale and retail trade; repair of motor vehicles and motorcycles (20.8%), professional, scientific and technical activities (15.1%), and construction (12.3%).

In Cyprus, the highest proportion of employees (39.8%) worked in micro companies with up to 9 employees. These companies accounted for the majority of all enterprises in the country (93.6%) with 81 989 of such businesses. 18.5% of persons employed worked in large companies with more than 250 employees, 18.3% of persons employed worked in medium companies with 50 to 249 employees, 12.2% of persons employed worked in small companies with 20 to 49 employees and 11.1% of persons employed worked in small companies with 10 to 19 employees.

Vacancies

In 2024, in Cyprus, the occupational groups with the highest occurrence of shortage occupations were: information and communications technology professionals, building and related trades workers (excluding electricians) and cleaners and helpers. On the other hand, the occupational groups with the highest occurrence of surplus occupations were: business and administration professionals, general and keyboard clerks and teaching professionals.

Read more about labour shortages and surpluses in Europe: Labour shortages and surpluses in Europe 2023 | European Labour Authority (europa.eu)

Job vacancy rate

Regarding the job vacancy rate (defined as the number of job vacancies expressed as a percentage of the total sum of occupied posts and job vacancies), in 2023 this was 2.8 % in the industry, construction and services, nearly matching the EU27 average. This rate has increased by 0.3 percentage points compared to 2022 and it is still above the situation before 2020, when it stood only at 1.7% .

^{Note: jvs_a_rate_r2, Statistics | Eurostat}

The sectors with the highest vacancy rates were: human health and social work activities; education; arts, entertainment and recreation; public administration and defence; compulsory social security; administrative and support services.

^{Note: jvs_a_rate_r2, Statistics | Eurostat}

Widely used job portals

Wages

Minimum wage

As of 1 January 2024, the statutory minimum wage in Cyprus was set at 1000 EUR. .

Monthly average gross and net earnings

In 2023, the gross average earnings of a single person stood at EUR 2224, while the EU27 average was EUR 3417. The equivalent net wage was EUR 1 909 in Cyprus, compared to EUR 2351 in the EU27. Compared to 2018, gross average earnings increased by 22.1% in Cyprus and by 19.8% in the EU27. During the same period, the net wages have increased by 14.4% in Cyprus and by 22.1% in the EU27.

^{Note: earn_nt_net, Single person earning 100% average, annual rates transformed into 12 monthly payments. Statistics | Eurostat (europa.eu)}

Trends

Go directly to Digital transition | Expected growing or declining sectors | Immigration | Issues related to remuneration | Remote work | Unemployment 

Digital transition

There’s an increasing demand for digital skills across various industries. Employers are seeking candidates proficient in technology, data analysis, data security, and digital marketing, highlighting a skills gap in the current workforce. The FOREX and IT support sectors are the fastest growing sectors in Cyprus at the moment.

Expected growing or declining sectors

Overall, sectors such as tourism, technology, healthcare, and renewable energy are expected to grow, while traditional agriculture, manufacturing, and retail may face challenges. Understanding these trends can help jobseekers and employers navigate the evolving labour market in Cyprus.

Immigration (from the EU, from third countries)

Immigration in Cyprus, both from EU member states and third countries, has been a significant aspect of the country’s demographic and economic landscape during the last decade.

There is a continued emphasis on attracting skilled workers from both the EU and third countries to address skills shortages. However, ongoing geopolitical issues like the war in Ukraine and the war in the Middle East, may lead to an increase in asylum seekers and refugees, necessitating a balanced approach to immigration policy, and filling shortages from the EU.

Overall, immigration in Cyprus is a multifaceted issue with significant implications for the labour market, economy, and social cohesion. Balancing the needs of the local population with the contributions of immigrants remains a critical challenge for policymakers.

Issues related to remuneration (e.g. minimum wage, living wage, subsidies)

1. Minimum Wage: Cyprus has recently introduced (2022) a national minimum wage. There has been an adjustment in its minimum wage starting from January 1, 2024. The national minimum wage for starting salaries (up to 6 months of employment in the same employer) has risen from €885.00 to €940.00 per month. After six months of employment, the national minimum wage increases to €1 000.00 per month.
2. Rising Costs: The cost of living in Cyprus, particularly in urban areas such as Nicosia, Limassol, and Larnaca, has been on the rise. Key factors include housing, utilities, and food prices.
3. Housing Market: The real estate market has seen increased demand, leading to higher rental prices. Many workers find that a significant portion of their income goes towards housing costs, which can consume 40% or more of their monthly earnings.
4. Essential Goods and Services: Prices for groceries, transportation, and healthcare have also increased. This further strain the budgets of low-wage workers who may struggle to afford basic necessities.
5. Living Wage Considerations: The gap between minimum wages and the cost of living raises questions about the adequacy of current remuneration levels. Advocates argue for a living wage that reflects the actual cost of living to ensure that all workers can meet their basic needs.

Remote work

The incidence of remote work has been gradually increasing in Cyprus between 2018 and 2023, from 1.2% to 3.9%. Similarly, the share of remote work as measured by ‘sometimes’ has increased from 1% to 6.8%. The increase in the incidence of remote work was exceptionally high during the pandemic.

^{Note: lfsa_ehomp, Product - Datasets - Eurostat}

Unemployment (e.g. long-term, youth, female, structural or low-skilled)

The positive growth rates of the Cypriot economy during the first and second quarters of 2024, (3.5%), caused employment to increase by 2.2% in the first half of 2024. According to data from the Cyprus Statistical Service the level of unemployment fell to 5.8% (lowest level since 2013) or 26 431people. The unemployment rate among young people aged 15-24 in the first half of 2024 decreased to 15.1% (4 990 persons) compared to 15.7% (5 370 persons) in the corresponding period of 2023. A significant decrease in unemployment was recorded in the 25-34 age group as well (25% decrease in the registered unemployed people) It should be noted that, out of the total number of unemployed, the number of Cypriot unemployed constitutes 69% of the total, the number of unemployed European citizens 9% and the number of unemployed third-country nationals 19%.

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