PwC surveyed 77 CEOs in Cyprus, finding that 43% identify skilled labor shortages as a key business risk for the next 12 months. The findings place talent constraints ahead of several other risks and highlight ongoing challenges in hiring employees with the required capabilities.

Critical Talent Gaps And Strategic Concerns

The survey shows that 43% of CEOs rank talent shortages as a primary threat, compared with geopolitical conflicts at 30%, technological change at 22% and cyberattacks at 21%. The data indicate that workforce availability remains a central constraint for business operations. PwC surveyed the latest escalation in the Middle East. Current perceptions of geopolitical risk may therefore be higher than reflected in the results.

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Technology Talent And The AI Imperative

Hiring challenges are more pronounced in artificial intelligence roles, where 45% of CEOs said they are not confident in their ability to recruit qualified specialists. Demand for technical expertise continues to outpace supply in this segment. Global data show a different trend, with 42% of CEOs expressing confidence in their ability to secure AI talent. The gap highlights regional differences in workforce availability and hiring conditions.

Confidence In Leadership And The Demand For Transparency

Executives also reported increased scrutiny of leadership decisions, cited by 13% of respondents. Demand for transparency was identified by 10%, while 9% pointed to concerns related to AI security and responsible use. These responses reflect pressure on management teams to balance operational decisions with governance, risk and communication expectations.

Insights From PwC Cyprus

Philippos Sosielos, CEO of PwC Cyprus, said the findings reflect structural challenges linked to skills, technology and geopolitical developments. He added that the business environment is becoming more complex as multiple risks converge. Sosielos noted that the survey results were recorded before recent geopolitical developments, indicating that current risk levels may be higher.

Long-Term Strategic Imperatives

Companies are expected to address workforce gaps through long-term planning and investment in skills development. Talent strategy is becoming a core component of business resilience. Future responses will depend on how organizations align recruitment, training and technology adoption with changing market conditions.