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Cyprus Employers Struggle To Fill Vacancies Despite High Graduate Numbers

by THEFUTURE.TEAM

November 10, 2026

Cyprus has no shortage of university graduates, yet employers continue to struggle to fill vacancies, while many qualified workers are employed in roles that do not fully use their skills.

This contradiction is highlighted in CYEmployers, the country’s first national employers’ skills survey, published by the Education Ministry. The findings reveal a persistent mismatch between the skills businesses need, the jobs they offer and the capabilities available in the labour market.

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Among private employers with vacancies, 71% reported difficulty filling certain positions. Meanwhile, 34% of private employers that had recruited recent graduates hired them for roles that did not require a university degree. The figure rose to 58% in the public sector. In addition, 45% of private employers and 69% of public-sector managers said some employees had skills exceeding their job requirements.

Recruitment Challenges Go Beyond A Lack Of Qualifications

Conducted by PwC Cyprus in cooperation with the Department of Higher Education, the survey gathered responses from 1,395 private-sector organisations and 221 senior public-sector officials between May 2024 and January 2025. The findings were published on November 9.

Among private employers struggling to recruit, 68% cited insufficient interest in available positions, 58% a shortage of applicants and 53% a lack of candidates with the right skills.

Public-sector managers reported similar challenges: 50% pointed to insufficient interest, 42% to unattractive employment conditions, including pay, and 39% to difficulties finding suitably skilled applicants.

Recruitment difficulties were most common for professionals, technicians, service and sales workers, and clerical employees. The findings suggest that the problem is not simply a shortage of qualified candidates, but also the ability of employers to attract them.

Employers Need More Than Technical Skills

Higher education qualifications accounted for an average of 48% of private-sector workforces and 71% of public-sector workforces. However, employers identified gaps in both practical and interpersonal skills.

Among private businesses facing recruitment difficulties, 43% said candidates lacked willingness to learn, 35% cited communication skills and 31% time management. Teamwork and analytical or critical thinking were each mentioned by 28%.

Public-sector managers also highlighted communication, teamwork, time management and willingness to learn (37% each), alongside initiative (42%) and complex problem-solving (39%).

Most employers considered graduates from Cypriot higher education institutions at least moderately prepared for work. However, only 33% of private employers rated them as well or very well prepared, compared with 49% of public-sector respondents.

Graduates received stronger assessments for written communication, basic numeracy and digital skills, but weaker ratings for leadership, initiative and complex problem-solving.

Graduates Face A Shortage Of Work Experience Opportunities

Seven in 10 private employers considered previous experience a major recruitment criterion. Yet 76% offered neither internships nor work placements during the period covered by the survey. Only 15% offered internships and 12% provided placements to students or graduates.

Among businesses offering these opportunities, 30% did not pay participants. Nevertheless, 31% later recruited someone who had completed an internship or placement with them.

Private employers also prioritised enthusiasm for the job (63%) and relevant technical skills (59%). In the public sector, formal qualifications were the leading criterion (73%), followed by technical skills (67%) and previous experience (66%).

Vacancies And Skills Gaps Affect Organisational Performance

Recruitment difficulties are putting additional pressure on existing employees. Among organisations reporting an impact from hiring challenges, 80% of private-sector and 85% of public-sector respondents cited heavier workloads.

Overall, 89% of private employers and 95% of public-sector respondents said recruitment difficulties affected organisational performance to some extent, including daily operations and service quality.

Skills gaps also persist among existing employees. Employers estimated that 14% to 23% of private-sector staff and 12% to 33% of public-sector staff, depending on occupational category, did not have full proficiency in the skills their jobs required.

At the same time, 61% of private-sector employees and 91% of public-sector employees worked in organisations reporting at least some underuse of staff skills.

Employers Expect Shortages To Continue

Over the next five years, 56% of private employers and 63% of public-sector managers expect skills shortages. A quarter of private employers and 21% of public-sector respondents anticipate severe gaps.

Private businesses are particularly concerned about interpersonal, organisational and specialised technical skills. Public-sector organisations expect greater shortages in digital capabilities: 60% of employees worked in organisations anticipating such gaps, compared with 11% in the private sector. The figure reached 86% across the wider public sector and 43% in central government.

Both sectors identified interpersonal skills as their main training priority, cited by 36% of private employers and 40% of public-sector respondents. Digital skills ranked second, at 22% and 26%, respectively.

Connecting Education With Labour Market Needs

The findings point to the need for closer cooperation between universities and businesses, more practical work experience opportunities and stronger training for existing employees. Employers may also need to reconsider job requirements, career progression and employment conditions to attract suitable candidates.

Cyprus’s challenge is not simply to produce more graduates, but to connect education more closely with labour market demand and make better use of the talent already available.

The survey reflects employers’ assessments rather than independent tests of workers’ abilities. Differences in sampling and weighting also mean that comparisons between the public and private sectors should be treated with caution.

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EU Services Production Grows As Information And Communication Lead

by THEFUTURE.TEAM

November 10, 2026

Services production continued to expand across the European Union in August 2026, with information and communication recording the strongest annual growth. However, performance varied significantly between industries and member states, while Cyprus reported a mixed picture, with business services expanding and hospitality-related activities declining.

Information And Communication Leads Sector Growth

Compared with August 2025, services production increased by 5.9% in the euro area and 5.8% across the EU in information and communication. Transportation and storage also recorded growth, rising by 2.1% and 1.9%, respectively.

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Real estate activities increased by 1.6% in the euro area and 1.1% in the EU. Professional, scientific and technical activities grew by 1% in both areas, while administrative and support services advanced by 1.1% and 1.3%.

Accommodation and food services was the only major sector to record an annual decline, falling by 0.1% in both the euro area and the EU.

The monthly figures were more mixed. Information and communication remained the strongest performer, increasing by 1.2% in the euro area and 1% across the EU. Real estate activities rose by 0.4% and 0.9%, respectively, while transportation and storage edged up 0.1% in the euro area but declined by 0.2% in the EU.

Administrative and support services recorded modest gains of 0.2% in the euro area and 0.1% in the EU. Accommodation and food services fell by 0.3% and 0.4%, while professional, scientific and technical activities declined by 0.8% and 0.9%, respectively.

Slovakia And Greece Record Strongest Annual Growth

Romania recorded the largest monthly increase in services production, at 5.2%, followed by Malta at 1.8% and Portugal at 1.7%. Luxembourg experienced the steepest decline, with output falling by 5.1%, followed by Bulgaria at 2.3% and Denmark at 1.9%.

On an annual basis, Slovakia led with growth of 10%, followed by Greece at 9.3% and Malta at 7.5%. Hungary recorded the weakest performance, with services production declining by 5.6%. Denmark fell by 5.3%, while Italy recorded a smaller decrease of 0.3%.

Cyprus Sees Growth In Business Services But Weakness In Hospitality

Cyprus’ latest figures show a similar divide between expanding business services and weaker hospitality-related activities. According to the Statistical Service of Cyprus (Cystat), professional, scientific and technical activities recorded the strongest annual growth among the covered sectors in the second quarter of 2026, increasing by 3.4%.

Transportation and storage and information and communication both grew by 2.1%, while real estate activities rose by 1.6%. In contrast, accommodation and food services declined by 3.1% year on year, and administrative and support services fell by 2.2%.

First-half results were more favourable for several sectors. Between January and June, professional, scientific and technical activities grew by 3.5%, transportation and storage by 2.8%, real estate by 2.1% and information and communication by 1.3%.

Nevertheless, administrative and support services contracted by 1% over the six-month period, while accommodation and food services declined by 0.7%.

How Cyprus’ Figures Differ From Eurostat’s Data

The Eurostat and Cystat figures measure different aspects of economic activity and are not directly comparable. Eurostat’s services production index tracks changes in the volume of output, whereas Cystat’s Turnover Value Index for Services and Transport measures the value of sales at current prices.

The reporting periods also differ: Eurostat’s figures cover August, while the cited Cypriot data relate to the second quarter and first half of 2026.

Cystat transmits services production data to Eurostat but does not yet publish a separate national production index. Turnover figures therefore remain the main publicly available national indicator for the sector.

Taken together, the data point to continued growth in several of Cyprus’ business-oriented services, alongside persistent pressure on accommodation, food and administrative support activities.