Panayiotis Rougalas
In its analysis, the Central Bank of Cyprus notes that in the first quarter of 2024, unemployment fell to 6%, the lowest level since 2009. Domestic inflation eased to 2.2% in the first five months of the year, a significant improvement from 5.4% during the same period last year. According to the Labour Force Survey, employment recovery continues in 2023, albeit at a slower pace, with an annual growth rate of 1.5%, compared to 3% in 2022. Unemployment dropped to 6.1% in 2023, down from 6.8% in 2022, marking the lowest level in fourteen years, since the 5.4% rate in 2009.
We should also consider other statistics. Data from the Cyprus Statistical Service on registered unemployed individuals show a continuous decline since June 2021, with April 2024 data indicating an annual decrease of 17.2% (from 11,284 to 9,343 people). In terms of unemployment by age group, individuals aged 25-34 make the largest contribution to the overall unemployment rate (6.1%), which is up 2 percentage points for 2023. The unemployment rate for this age group fell to 7.5% in 2023, down from 9.0% in 2022.
If a "foreigner" reads the above, translated into English, they might think that Cyprus is a "land of promise" when it comes to employment. They might assume that as soon as they "pick up the phone," they’ll find a job with excellent conditions, reasonable working hours, and sufficient purchasing power at the end of the month. Unfortunately, the reality is far removed from these "cold" numbers, which paint a picture of prosperity.
When this "foreigner" tries to rent an apartment in any province, they’ll quickly see that prices are not in line with the average salary in Cyprus. The rental prices recently presented by the president of the Real Estate Registration Council, Marinos Kinegirou, are indicative: units in Limassol range from 1,000 to 1,100 euros, in Nicosia from 600 to 700 euros, and in Larnaca and Paphos from 500 to 600 euros. Two-bedroom apartments are considerably more expensive: in Limassol, they reach 1,400 to 1,500 euros, in Nicosia and Paphos 800 to 900 euros, and in Larnaca 700 to 800 euros.
But what is the average salary? According to the latest available data from the Statistical Office, the average gross monthly earnings of employees in the first quarter of 2024 are estimated at 2,378 euros, compared to 2,251 in the first quarter of 2023. However, the reality lies somewhere in between. The average gross salary is influenced by respectable public sector wages, which, with increments, cost of living adjustments (ATA), and other associated benefits, are at these levels. In the private sector, good salaries are mainly enjoyed by senior bank officers, employees of technology and financial companies (especially in Limassol), and highly-paid lawyers and doctors.
If you ask your next-door neighbor how much they earn monthly, you might be surprised at how far their income is from the 2,378 euros reported by the statistics. They might struggle to rent a place in Limassol on their own and could only marginally afford something in other provinces. Unfortunately, this is the Cypriot reality. There’s no need to elaborate on how expensive supermarkets, clothing, and basic necessities have become. Yes, jobs exist, and unemployment has decreased, but wages are not enough to live decently in Cyprus on a single income, without help from relatives or friends. Or, at the very least, it’s difficult.
[This article was translated from its Greek original]
