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Cyprus Economic Growth Spurs Strategic Workforce Transformation

Economic Growth And Emerging Talent Needs

Cyprus has recorded steady economic growth in recent years alongside a decline in unemployment. This expansion has increased demand for labor across multiple sectors. Entry of international technology companies has added pressure on the labor market, increasing demand for skilled professionals and prompting policy responses aimed at addressing shortages.

Renewed Agreement With Egypt

Minister of Labour Marinos Moussoutas visited Cairo for discussions with Egyptian officials on labor cooperation. Talks focused on the Memorandum of Understanding signed in June 2024 between Cyprus and Egypt on the employment of Egyptian workers. Initial uptake from Cypriot employers remained limited. Recent discussions focused on revising the framework to expand its use across sectors, including tourism, construction, IT, and recycling.

Economic Resilience Amid Geopolitical Uncertainty

Cyprus’s GDP grew by 3.8% year-on-year and by 4.5% in the fourth quarter of 2025. Growth was supported by hospitality, construction, ICT, and retail. Construction expanded by 9.4%, while ICT, tourism and trade grew by 8% and 7.2%, respectively. According to the International Monetary Fund, growth is expected to stabilize at around 3% in the coming years.

Critical Labor Shortages In Construction

Construction continues to face shortages of skilled workers. During discussions hosted by the Cyprus Employers and Industrialists Federation, President Stelios Gabriel cited gaps in roles such as builders, site managers, technical operators, and civil engineers. Industry estimates indicate that more than 5,000 additional workers are needed to meet current demand, with shortages affecting project timelines and delivery capacity.

Hospitality And Retail: Balancing Growth With Workforce Challenges

Hospitality continues to report growth in arrivals and revenue, supported by demand from markets including Poland, Germany, and Israel. Geopolitical tensions in the region have affected short-term demand trends. In retail, approximately 4,000 vacancies remain unfilled. A new framework approved by the Ministry of Labour allows for increased employment of foreign workers to address shortages.

Upcoming retail developments in Limassol, including Limassol Mall and The Mall of Limassol, are expected to create around 1,000 additional jobs in the initial phase.

Tech Sector: Confronting The Talent Gap

ICT accounts for approximately 14% of Cyprus’s GDP and remains one of the fastest-growing segments of the economy. Since 2011, sector value has increased by more than 200%, placing Cyprus among the fastest-growing ICT markets in the EU. Findings from the 15th Annual PwC Cyprus CEO Survey show that 43% of business leaders identify the shortage of skilled professionals as a key risk, particularly in areas such as artificial intelligence.

Retail Expansion And Future Workforce Prospects

Retail expansion continues as new commercial projects are developed and existing chains expand beyond major cities. This growth is increasing the demand for trained and adaptable workers. Addressing labor shortages remains a key requirement for sustaining current growth levels across sectors.

Women Make Up A Majority Of The EU’s Science And Technology Workforce But The Real Gap Is Elsewhere

Women now make up the majority of the EU’s science and technology workforce. According to Eurostat, in 2025, more than 81.6 million people aged 15 to 74 were employed in science and technology occupations across the EU. Of those, 52.5% were women, equal to 42.8 million women. The number of women in these occupations rose by 27.9% compared with 2015, an increase of more than 9.3 million over a decade.

On the surface, the numbers resemble progress. However, Eurostat’s category requires context before that figure can be read accurately. The data refers to HRST, or Human Resources in Science and Technology, specifically people employed in science and technology occupations. These are roles where the main tasks require professional or technical knowledge in physical and life sciences, but also in social sciences and humanities. That definition is wider and broader than engineering, ICT, laboratory science, or high-tech research alone.

Zooming In

The gender picture changes once the data moves from a wider definition of the workforce to the narrower scientist-and-engineer (research and manufacturing) subgroup.

Scientists and engineers represented almost a quarter of all people employed in science and technology in the EU in 2025. Eurostat describes scientists and engineers as often being the innovators at the centre of technology-led development, making them an important subgroup to focus on separately.

Women accounted for only 40.8% of scientists and engineers in 2025, despite making up more than half of the wider category. That share has increased by a mere 0.5 percentage points over the past decade. The absolute number of women working as scientists and engineers rose from 5.3 million in 2015 to 8.2 million in 2025, despite the push from national and international organisations to increase the number of women in the field. Europe has expanded the number of women in science and technology occupations over ten years. However, that expansion has not extended equally into the scientist-and-engineer subgroup, where much of Europe’s research and innovation work is conducted.

In 2025, of the 39.4 million women aged 25 to 64 working in science and technology occupations in the EU, 35.5 million worked in service activities. Only 2.7 million worked in manufacturing. Women accounted for 57.5% of science and technology employment in services, but only 31.3% in manufacturing.

In 2025, the highest shares of women employed in science and technology occupations were recorded in Latvia at 62.4%, followed by Hungary’s Great Plain and North region at 61.1%, Estonia at 60.5%, Poland’s Central macroregion at 60.4%, and Lithuania at 60.3%. No EU country recorded a majority of women among science and technology workers in manufacturing.

Break-down

Eurostat’s figures measure employment in broad science and technology occupations. They do not show job security, pay levels, management roles, promotion rates, research leadership, or whether women are concentrated in junior or senior workplace positions.

The classification of “senior” also requires additional explanation. Eurostat reports that 45.9% of science and technology workers aged 25 to 64 in the EU were classified as “senior” HRST in 2025. In this dataset, “senior” refers to workers aged 45 to 64. It does not mean senior manager, senior researcher, team lead, or decision-maker.

A high female share in the wider Human Resource Science and Technology (HRST) category does not parallel equal representation across scientists, engineers, manufacturing roles, senior posts, pay, research funding, or decision-making. These figures also reflect the occupational mix inside each country or region, not only structural progress across all areas of science and technology.

The Case Of Cyprus

Eurostat data places Cyprus’s overall science and technology employment at 37.2% of the labour force in 2025, slightly above the EU-27 figure of 36.9%, and above Greece at 26.8%, Malta at 33.9%, and Turkey at 18.2%. This figure covers the total share of the labour force employed in science and technology across all genders.

Progress Or Work-in-Progress?

52.5% in the broad category. 40.8% among scientists and engineers. 31.3% in manufacturing. Europe’s gender gap in science and technology hasn’t closed yet, and there is still work to be done to encourage and support more women to enter the field, especially in research and manufacturing.

Let’s not wait another decade for another couple of percentage points of hope.

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