Dorita Yiannakou
Employment in Cyprus is growing at a rapid pace, pushing unemployment close to record lows. This is positive for the country’s labor market, as it highlights the strength of the Cypriot economy and creates favorable prospects for growth. At the same time, however, labor shortages in key sectors of the economy remain a serious challenge, holding back growth and emerging as the biggest problem facing businesses.
Cyprus is therefore confronted with a paradox: more jobs and lower unemployment on the one hand, but a growing need for workers on the other. Filling labor shortages has become one of the most important challenges in maintaining the economy’s growth momentum.
According to the Statistical Service’s Labour Force Survey, Cyprus’ labor force reached 540,130 people in the second quarter of 2026, representing 65.6% of the population, 70.9% of men, and 60.5% of women. This compares with 528,981 people, or 65.4%, in the same quarter of 2025.
The number of employed people stood at 520,763, while the employment rate reached 63.2%, 68.5% for men, and 58.3% for women. In the corresponding quarter of 2025, 506,318 people were employed, with an employment rate of 62.6%.
The number of unemployed people fell to 19,367, bringing the unemployment rate down to 3.6% of the labor force, 3.5% among men, and 3.7% among women. This compares with 22,663 unemployed people and a rate of 4.3% in the same period last year.
Employment
Among people aged 20 to 64, the employment rate stood at 82.8%. The rate was 87.8% for men and 78.1% for women. In the corresponding quarter of 2025, the overall rate was 81.7%, 87% for men, and 76.5% for women.
For people aged 55 to 64, the employment rate reached 72.6%, up from 71.5% in the same quarter of 2025.
The number of unemployed people fell to 19,367, with unemployment declining to 3.6% of the labor force, compared with 22,663 people in the corresponding quarter last year.
Services accounted for the largest share of employment at 81.8%, followed by industry at 16.2% and agriculture at 2%. In the second quarter of 2025, the corresponding figures were 81.2% for services, 16.6% for industry, and 2.2% for agriculture.
Part-time employment accounted for 8.7% of total employment, or 45,178 people, 7.6% of employed men, and 9.9% of employed women. The corresponding rate in the second quarter of 2025 was 9.4%, 7.1% for men, and 12% for women.
Of all employed people, 89.8%, or 467,712, were employees. Of those, 15.7%, or 73,306 people, were in temporary employment. In the corresponding quarter of 2025, employees accounted for 90% of total employment, with 14.3% of them holding temporary jobs.
Unemployment
Among young people aged 15 to 24, the unemployment rate stood at 12.2% of the labor force in that age group, 12% for men and 12.4% for women. This compares with 14.9% in the same quarter last year, 15.8% for men, and 13.9% for women.
In terms of the length of unemployment, 62.4% of unemployed people had been looking for work for less than six months, 16.5% had been searching for six to 11 months, while 21.1% were long-term unemployed. The corresponding figures for the second quarter of 2025 were 55.9%, 23%, and 21.1%, respectively.
The shortages
At the same time, the business community is urgently raising the issue of labor shortages with the relevant authorities, as the problem becomes more severe in certain sectors of the economy. Businesses are being asked to meet growing staffing needs just as the available pool of workers is drying up.
Business representatives warn that the issue can no longer remain unresolved, as staff shortages threaten to limit companies’ ability to operate and expand. This, in turn, could slow the growth of the Cypriot economy.
The focus is now on better matching education with the needs of the labor market, strengthening vocational training, and attracting workers to sectors where demand is particularly high. For businesses, filling these vacancies is no longer simply a staffing issue. It has become essential for continued growth and for maintaining the competitiveness of the Cypriot economy.
The problem is particularly serious in the healthcare sector, where shortages of nursing staff are causing growing concern. Demand for nurses remains high, while the supply is insufficient to meet existing needs, placing significant pressure on healthcare facilities.
Having enough nurses is directly linked not only to the smooth operation of health services but also to the quality of care provided. Addressing the shortage of nurses has therefore become one of the most important challenges facing the healthcare sector.
On Monday, the Cyprus Employers and Industrialists Federation, known as OEB, raised the labor shortage, among other issues, with President Nikos Christodoulides.
OEB President Giorgos Pantelides said that, regarding the shortage of nurses and the next steps, the government had either submitted or was preparing to submit specific bills that the federation believes “are heading in the right direction.”
“OEB will hold meetings with all parliamentary parties,” he said, noting that the aim was to present and support the federation’s positions.
Pantelides said it was “widely acknowledged that the shortage of nurses is evident.”
“I believe we have now entered a substantive discussion aimed at finding practical solutions that require legislative changes,” he added.
He said the government had “embraced the proposals of the business community,” adding that OEB expected parliamentary parties to adopt a responsible stance during consultations, “not merely toward hospitals, but toward the state and the patient.”
