Apostolos Tomaras
New data from the Deputy Ministry of Migration and International Protection shows the Cypriot economy’s heavy reliance on foreign workers who reside and work on the island. Low birth rates and limited interest among Cypriots in certain sectors have made foreign labor essential to maintaining the country’s €33.5 billion Gross Domestic Product.
The situation mirrors challenges across Europe, where governments have turned to migration to fill labor gaps. That approach has brought complications, including the expansion of undeclared work, worker exploitation, lost state revenue, rising welfare spending and increases in certain types of crime. Cyprus has faced similar issues during periods of elevated migration flows, prompting concerns about social pressures and demographic changes in some communities.
According to the Deputy Ministry, 175,677 legally residing foreign workers currently live in Cyprus, coming from both EU member states and third countries. Cyprus, like other European states, continues to confront questions about providing social support to migrants seeking better living conditions. Evidence suggests these policies have not met the goal of using migrants to address structural labor shortages. As a result, some countries, including the United Kingdom, have revised social benefits in an effort to restrain migration flows.
Contribution to the workforce
For the past 15 to 20 years, no complete data has been available measuring the exact economic contribution of foreign labor. Deputy Minister of Migration and International Protection Nikolas Ioannidis told Parliament that most foreign nationals with work permits are employed in domestic and general labor, the areas with the highest demand, as well as in international companies, universities and as family members of Cypriot or EU citizens.
An unspecified share consists of individuals under international protection, along with others who remain in Cyprus while their asylum applications are adjudicated. Ioannidis noted a recent decline in the number of people under international protection, likely tied to developments in Syria and to steps taken by the Cypriot government to avoid projecting the island as an appealing destination for irregular migration.
Positives and negatives
While the situation is clearer for legally employed EU and third-country nationals, it is less so for those entering Cyprus irregularly. In addition to legal work permit holders, about 16,000 people legally reside in Cyprus while awaiting decisions on asylum applications, and another 6,000 have appealed rejected applications. These groups fill labor shortages in demanding agricultural, livestock and construction jobs that attract little interest from the domestic workforce.
Economist Giorgos Syrichas of the University of Cyprus Economic Research Centre said past studies link the availability of cheap foreign labor with reduced investment in technological infrastructure, resulting in weaker productivity in some sectors. Undeclared work is widespread in industries with seasonal employment patterns, though no data exists on the associated loss of state revenue. Another drawback, particularly in modern professions, is the lack of knowledge transfer.
Emerging shortages
A large share of legally residing migrants come from Syria, especially those who left during the Assad era. Many found work in construction. Since the fall of the Assad regime on Dec. 9, 2024, the number of Syrians in Cyprus has fallen as they return home. So far, 4,007 Syrians have left the island, which may leave a gap in the booming construction industry.
Shortages are also reported in tourism, where hotel operators remain reluctant to place migrants in front-line positions.
Breakdown of the foreign labor force
The Deputy Ministry’s data offers a detailed picture of Cyprus’s foreign workforce. Russians form the largest group, numbering 40,735, about 23% of all foreign workers, three to four times more than most other nationalities. They are followed by nationals of the United Kingdom (16,279), Nepal (15,607), India (14,237), Syria (12,868), China (9,407), Sri Lanka (8,895), the Philippines (8,807), Ukraine (6,172), and Egypt (4,860), along with 37,810 workers from other countries.
Migrant reception centers currently host 400 people in Pournara, 269 in Kofinou and 227 in Limnes. There are 167 unaccompanied minors living in various facilities, with another 58 awaiting placement at the Pournara center.
