Newsroom / CNA
The labor market in 2024 is achieving its strongest performance in the past 15 years, driven by increased job creation, employment growth, reduced unemployment, and rising wages. Labor and Social Insurance Minister Giannis Panagiotou underscored these developments during a press conference held at the Ministry of Labor and Social Insurance on Tuesday. He also emphasized the government’s targeted initiatives to further strengthen employment.
Panagiotou explained that the government has implemented a holistic and balanced policy framework aimed at fostering economic growth and social cohesion. The Ministry is systematically working toward two major goals: achieving full employment and ensuring adequate wages.
Drawing on data from the Statistical Service, the Minister highlighted significant progress compared to 2023. Job creation rose by 15.4%, resulting in 14,339 new positions, equivalent to 3.2% of total employment. The employment rate climbed to 79.8%, with 6,263 additional workers bringing the total workforce to 465,459. Panagiotou described the 79.8% employment rate as exceptionally high by European standards, noting that the largest increases in job vacancies were seen in the hotel and construction sectors.
Unemployment also declined sharply, with 4,349 fewer unemployed individuals, reducing the unemployment rate from 5.8% in 2023 to 5.0% in 2024. Panagiotou noted that crossing the 5.0% threshold signals conditions approaching full employment. The number of registered unemployed fell by 1,824, while long-term unemployment—defined as being registered for six to twelve months—dropped by 29.7%.
Wages have shown corresponding improvements. The average monthly salary increased by 5.3%, rising from €2,270 in 2023 to €2,390 in 2024. Hourly labor costs also rose by 4.5%, reflecting broader trends in compensation growth.
Addressing concerns about the potential impact of regional developments on sectors such as construction, Panagiotou acknowledged challenges stemming from the situation in the Middle East. He assured that the Ministry has already undertaken preliminary planning to respond effectively to any scenario, ensuring minimal disruption to the labor market.
To further support employment, the Ministry has implemented several targeted programs. These initiatives include hiring individuals with chronic illnesses and disabilities, promoting remote work for the unemployed, and reintegrating formerly incarcerated individuals into the workforce. Collectively, these programs have a budget of €13.87 million. Beginning in January 2024, additional schemes will be rolled out with €15 million allocated to employ older workers, women, and inactive individuals through flexible work arrangements.
Panagiotou reiterated the Ministry’s commitment to enhancing employment opportunities for youth under 30, workers over 50, and women. He expressed confidence that the continued collaboration between workers, employers, and the government will unlock the labor market’s full potential, supporting sustained economic growth and strengthening social cohesion in Cyprus.
