Cyprus’ unemployment rate fell to 3.6% in the second quarter of 2026 from 4.3% a year earlier, as employment continued to expand, according to the Cyprus Statistical Service (Cystat).

The number of employed people rose 2.9% year on year to 520,763, while the employment rate increased to 63.2% from 62.6%. The labour force also expanded 2.1% to 540,130 people.

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Women Drive Employment Growth

Female employment increased 4.4% to 246,895, lifting the female employment rate to 58.3% from 57.2%. Male employment grew 1.5% to 273,868, while the male rate edged up to 68.5% from 68.3%.

Unemployment fell 14.5% to 19,367 people. The male unemployment rate declined to 3.5% from 3.9%, while the female rate fell more sharply to 3.7% from 4.7%.

Services Remain The Main Employer

Services continued to account for the vast majority of jobs, employing 426,231 people, or 81.8% of total employment, compared with 411,204 a year earlier.

Industry employed 84,135 people, although its share fell to 16.2% from 16.6%. Agricultural employment declined to 10,397 from 11,306, reducing its share to 2%.

The concentration in services was particularly strong among women, with the sector accounting for 92.7% of female employment, compared with 72% among men.

Full-Time Employment Strengthens

Full-time employment increased 3.6% to 475,586 people, raising its share of total employment to 91.3% from 90.6%. Part-time employment fell 4.7% to 45,178, reducing its share to 8.7%. The part-time rate among women declined to 9.9% from 12%, while the male rate increased to 7.6% from 7.1%.

Employees accounted for 467,712 jobs, or 89.8% of total employment, while self-employed workers numbered 53,051. Self-employment increased 4.9% year on year.

Temporary Jobs Increase

Permanent employees numbered 394,406, accounting for 84.3% of employee jobs, down from 85.7% a year earlier.

Temporary employment rose 12.1% to 73,306, increasing its share from 14.3% to 15.7%. The increase was particularly strong among men, whose temporary employment reached 28,307.

Youth Unemployment Also Falls

The unemployment rate among people aged 15 to 24 fell to 12.2% from 14.9%, while the number of unemployed young people declined 20.6% to 3,594. Among those aged 25 to 64, unemployment fell to 15,416 from 17,505, bringing the rate down to 3.2% from 3.7%.

Employment among people aged 20 to 64 reached 493,680, with the employment rate rising to 82.8% from 81.7%. For those aged 55 to 64, the rate increased to 72.6% from 71.5%.

Long-Term Unemployment Remains Stable

Most unemployed people had been searching for work for less than six months. Their number reached 12,086, or 62.4% of total unemployment, compared with 55.9% a year earlier.

A further 3,197 people had been unemployed for six to 11 months, while long-term unemployment fell to 4,084 from 4,792. Despite the decline in numbers, long-term unemployed people still accounted for 21.1% of total unemployment.

Overall, the data show continued improvement in Cyprus’ labour market, with unemployment declining while employment and full-time work expanded.